Financial Times - Nationwide launches cheapest five-year fixed rate mortgage on record
Nationwide Building Society has turned up the temperature on the mortgage rate wars by launching the UK’s lowest ever five-year fixed rate home loan, with an interest rate of 0.99 per cent.
Aaron Strutt, product director at mortgage broker Trinity Financial, told the Financial Times lenders had access to funding at such low costs that they were still able to offer record low rates and continue to make money.
“Many borrowers have the choice of sub-1 per cent two, three and five-year fixes. With so many lenders offering interest-only with rates around 1 per cent there are some very cheap options.” Rates were likely to get even cheaper, he added.