Evening Standard - Nationwide becomes first lender to drop two year fixed mortgage rate below 5%
Nationwide today became the first major major lender since the mini-Budget debacle last September to offer two year fixed rate deals below 5% in what was described as a “watershed moment” for the housing market.
Aaron Strutt, product and communications director at London brokers Trinity Financial, told The Evening Standard: "We now have two-, three-, five- and ten-year fixed rates available below five per cent which is good news and hopefully should bring a bit more confidence to the market.
“The Bank of England’s decision to hold the base rate has provided more stability, which has helped lower funding costs. We are in an unusual situation where many of the cheapest deals are much lower than the Bank of England base rate.
"Over the last week, NatWest and HSBC have lowered their rates twice, while other big providers like Halifax have also made rates more attractive. The lenders know the best way to shift their mortgages is to make their rates as competitively priced as possible.
“Many lenders are offering cheaper rates to borrowers buying homes rather than remortgaging as they try to bring life back to the homebuying market. The has been a big drop in the number of people purchasing properties, while there is no shortage of people needing to remortgage.
“These sub-5% rates are certainly more appealing than many of the deals we have seen for quite some time.”
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