FTAdviser - First sub-1% five-year mortgage launches
Nationwide Building Society has become the first lender in British history to offer a sub-1 per cent rate on a five-year fixed rate mortgage.
“The mortgage market has officially gone crazy,” Aaron Strutt, product and communications director at Trinity Financial, told FTAdviser.
“It wasn’t that long ago that a five-year fix at 5 per cent, or just below, was good value. It’s a sign of the times and how cheap access to funding for lenders is, that they can offer such cheap rates.”
“It doesn’t seem like there will be too many changes. For years, people said rates would go up. The pandemic happened - rates went up a little - but now they’re on a downwards spiral.
“I had a bet with my colleague years ago that we’d one day see sub-1 per cent rates, but he didn’t think it would happen.”