People who are on fixed-rate mortgages have been warned they are missing out on the best rates – as Nationwide sparked the return of sub-4 per cent rates today. The UK’s largest building society has made the move as the Cost of Living crisis continues.
Brokers hope Nationwide’s mortgage deal is sign of ‘summer of savings’ for homebuyers. Nationwide Building Society said from Wednesday it would be cutting rates by up to 0.25 percentage points across its two-, three- and five-year fixed mortgage products.
It will be offering a five-year fixed deal priced at 3.99%. This will be available to new customers buying a home who are looking to borrow up to 60% of the property’s value. Nicholas Mendes, a mortgage technical manager at the broker John Charcol, said: “Nationwide is the first lender to finally breach the 4% benchmark following recent weeks of downward repricing. This is fantastic news for borrowers and signifies a significant change in the mortgage landscape after recent months of increased rates.”
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“We will likely see the likes of HSBC look to reprice again to ensure they remain ahead of the pack,” Mendes added. Emma Jones, the managing director at the broker When The Bank Says No, said: “This is a big moment … Lenders seem to be pricing in a [Bank of England] base rate cut in August or, if not, not long after. If that happens, then we could see rates continue to drop.”
Henry Jordan, Nationwide’s director of home, said the latest rate cuts, including the reintroduction of a sub-4% deal, “further reinforce our position as one of the most competitive lenders in the market”. The minimum loan size on £1,499 fee products is £300,000.
At the same time, Nationwide is increasing the rates by up to 0.15% on selected two-year tracker products.
