Nationwide has cut mortgage rates for first-time buyers and home movers with its lowest price plunging to 3.89%.
This particular rate is available for home movers taking out a two or five-year fixed rate product who have at least 40% to put down as a deposit. Both deals come with a £1,499 fee.
But it’s not just movers with plenty of equity who are benefiting from Nationwide’s price cuts. It has also cut rates on a number of first-time buyer deals including a two-year fixed rate product for those who need to borrow up to 90% of their home’s value which has been reduced to 4.72%. This deal comes with a £999 fee.
A rate of 4.09% is also available for first-time buyers who want to borrow at up to 60% loan-to-value (LTV).
Henry Jordan, director of home at Nationwide, said: “We know that rate is an important factor for borrowers looking to buy their first home or move onto their next.
“These latest cuts should put Nationwide firmly on the radar for first-time buyers and home movers as we continue to be one of the most competitively priced lenders in the market.”
Mortgage experts have welcomed the latest round of rate reductions, especially as it means there are now more sub-4% deals on the market.
Michelle Lawson, director at Lawson Financial, speaking via the Newspage Agency, said: “Nationwide have joined the rate reduction party going sub-4% across two, three and five-year fixed rates.
“It’s quite an entrance from one of the UK’s biggest mortgage lenders. Lenders are seriously locking horns right now.”
For anyone in the midst of taking out their mortgage, Riz Malik, director at R3 Wealth speaking to Newspage, thought more cuts might follow and recommended speaking to your broker to ensure you are getting the lowest price.
“Nationwide waited until after the Easter break to take the axe to their rates with new borrowers and home movers alike benefiting from the lowest fixed rates,” he said.
“Given current market movements, the next seven days may see even more cuts as the expectation for future rate cuts increases. If you have an application or an offer and the deal has not completed yet, speak to your broker.”
