Nationwide offering two and five-year fixes at 3.89% for mortgages between £300,000 and £5 million
Nationwide for Intermediaries has recently lowered its mortgage rates and is now offering two-, three-, and five-year fixes at rates below 4%.
Nationwide is the UK's largest building society, and it has launched two and five-year fixes at 3.89%, with the three-year fix still below 4%.
These mortgages are available to borrowers with a 40% deposit who are buying a property and need to raise between £300,000 and £5 million. There is a £1,499 arrangement fee, and early repayment charges apply. The lender also has a sub-4% five-year fixed remortgage rate.
Aaron Strutt, product director at Trinity Financial, says: "If you are on the hunt for a mortgage there are some great options to choose from at the moment. It was not long ago that it looked like rates were going up, but now we have a range of lenders offering sub-4% fixes.
"While the lowest rates are available to borrowers with a 35% or 40% deposit, the fixes with a 30% or 25% deposit are not much more expensive. Lenders are working hard to attract borrowers, especially now that the stamp duty rate has been increased.
Nationwide representative example: A capital and interest mortgage of £300,000 payable over 30 years, initially on a fixed rate basis at 3.89% for 24 months and then the standard variable rate currently at 7.24% for the remaining 28 years. The 3.89% rate would require 24 monthly repayments of £1,413.29 followed by 336 payments of £2,010.09. The total amount repayable would be £710,823.20 made up of the loan amount, plus interest (£409,309.52) and £1,499 (product fee), £65 (final repayment charge), £15 (completion fee). The overall cost for comparison is 6.9% APRC representative.
Should you take a two, three or five-year fix mortgage?
The price difference between the two-, three-, and five-year fixes is currently minimal, with some lenders offering their lowest rates to borrowers opting for two-year fixes over five-year fixes. Longer-term fixes are typically less expensive than two-year rates.
With the money markets predicting at least three Bank of England base rate reductions this year, there is a fair chance that mortgage rates could come down, and cheaper fixed-rate options may become available. However, things change very quickly in the mortgage industry so if are planning to stay in your property for the foreseeable future then it may well be worth taking a five-year fix, if you think the Bank of England will need to act to sure up then economy and lower rates to stimulate the property market, then a two-year fix may be best for you.
Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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