More mortgage rate cuts as Nationwide offers 3.83%
Major lenders continue to cut mortgage rates daily. Nationwide will launch a new market buy tomorrow.
The housing association offers a five-year fixed interest rate of 3.83 percent. This is the cheapest mortgage available.
It is available to new and existing Nationwide customers who are moving. There is also a fee of £1,499. Without fees, the mortgage has an interest rate of 4.1 per cent.
Drop: Nationwide becomes latest mortgage lender to cut some of its interest rates
The next best deal is Barclays’ five-year mortgage for those looking to move, priced at 3.84 per cent with a lower rate of £899.
For those looking to remortgage, the best deal is Barclays’ 4.06 per cent five-year rate with a £948 fee.
Halifax will also lower the mortgage rate for its three-year fixed products tomorrow.
Some interest rates will be cut by up to 0.37 percent, but full details will not be announced until then.
Stephen Perkins, director at mortgage broker Yellow Brick Mortgages, told Newspage news agency: ‘Further rate cuts by two of the biggest players in the mortgage market send a clear and strong message to borrowers.
“With competition between lenders increasing, this is a fantastic time for borrowers to make their dream home a reality.”
NatWest has cut many of its mortgage rates and is now offering some of the best deals for first-time home buyers.
The 4.68 percent interest rate over five years is a good buy for people buying a home with a 10 percent down payment and is only available to new customers.
Santander has also implemented reductions today.
Most major lenders have cut mortgage rates in recent weeks.
This is partly because the Bank of England cut the base rate from 5.25 percent to 5 percent in early August, although lenders had already factored this in to some extent.
Tomorrow the inflation figures will be published, which will affect the base interest rate.
Analysts predict that interest rates rose for the first time this year in July, and some mortgage experts expect this will slow the pace of mortgage rate cuts.
Justin Moy, director at mortgage broker EHF Mortgages, told Newspage: ‘Given the potentially worrying inflation figures on the horizon, it will be interesting to see whether lenders will hold off for a while longer.’
What are the best mortgage rates with a fixed term of two years?
The mortgages with the lowest interest rates at the moment are mortgages with a term of five years.
This is because many borrowers still believe that interest rates will fall in the next two years and prefer to opt for a two-year fixed rate. Banks must therefore offer more attractive interest rates to secure a five-year loan.
However, experts believe it is unlikely that interest rates, which prevailed in 2021 and early 2022, will fall below two percent again, even in five years.
Right now the best-priced two-year fix is at Barclays, at 4.22 per cent with a fee of £899. It’s for homebuyers with a deposit of at least 40 per cent.
The best two-year refinance rate is at NatWest at 4.34 per cent. This is again reserved for those with 40 per cent and the buyer has to pay a fee of £1,544.