Nationwide has risen to the top of the best buy tables again with a new mortgage rate cut.
The building society has reduced rates today and now offers a market leading five-year fix at 3.78% at 60% loan-to-value.
This could be a boost to buyers who have been waiting for the cost of borrowing to fall further before making offers on properties.
There is a hefty fee of £1,499 though.
It comes as mortgage rates have been falling across the market in recent weeks, with cuts also coming from major lenders such as Barclays, Virgin Money and TSB.
Moneyfacts data shows the average five-year fix is now at 5.25%, down from 5.27% on Tuesday, while the typical two-year deal has fallen from 5.64% to 5.62%.
Commenting on the Nationwide reduction, Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “With markets expecting further rate cuts, we could see a 3.5% five-year fix by the time we get to Christmas, which will be a massive psychological boost for the market.”
Tony Castle, managing director at broker PFG Mortgages, told Newspage: “It’s incredible to see rates at 3.78%. Many thought we may not see this until 2025, but they have been proven wrong. This is a huge boost for homeowners and home movers alike. These rate reductions are sprinkling some serious stardust onto the housing market.”
Gabriel McKeown, head of macroeconomics at Sad Rabbit Investments, added: “The recent mortgage rate cuts by Nationwide signal a pivotal shift in the UK mortgage market, driven by broader economic trends as the Bank of England hints at further interest rate cuts to manage inflation. The reintroduction of sub-4% fixed-rate mortgages will begin to offer financial relief as many transition from historically low rates.
“These reductions should help to drive increased affordability and market activity in the housing sector, with the potential for further reductions leading to more competitive mortgage offerings across the board. However, the prevalence of mortgage rate reductions across the wider sector hinges on continued economic stability and the Bank of England’s future monetary policy.”
