Nationwide offers lowest ever 10-year fix

Competition on the UK mortgage market is heating up as Nationwide prepares to launch a new record-low 10-year fix.

The building society will offer, from tomorrow (21st January), a new 10-year fixed rate mortgage at up to 60 per cent loan-to-value with rates for new customers standing at 2.94 per cent and for existing ones – at 2.84 per cent.

These will be the lowest rates on 10-year fixed products currently on the market.

In the short span of two weeks, two heavyweight lenders have cut their long-term rates to record lows. On 7 January, Barclays introduced a 10-year fix at 2.99 per cent.

The new 10-year offer from Nationwide comes with a £999 product fee, reduced to £499 for first-time buyers. Remortgage customers benefit from free standard valuation and the choice between free standard legal work or £250 cashback.

The society has also cut rates on shorter term products. The reduction on five-year fixed rate mortgages is 0.4 percentage points with rates now starting at 2.44 per cent.

Two-year fixed rate products are now available from 1.74 per cent for new customers and for existing clients the rates start from 1.64 per cent, which is the lowest fixed rate Nationwide has ever offered.

“There has been a growing trend of customers opting for longer term fixed rates to ensure certainty of monthly mortgage payment, particularly ahead of any rise in interest rates, with the recently-introduced 10 year fixed rate mortgages proving a popular addition to the range .This competitive range of new fixed rate mortgage deals is likely to appeal to both first time buyers and those looking to remortgage by ensuring longer term security of mortgage payments,” Richard Napier, Nationwide’s director of mortgages and savings, commented.

Some of the best among the new deals are: