Nationwide is the latest big mortgage lender to offer a 3.99% five-year fix
Nationwide for Intermediaries is the latest mortgage lender to offer a sub-4% mortgage rate.
Earlier this week the UK's largest building society launched a 3.99% five-year fix specifically for customers looking to remortgage.
The mortgage is available to borrowers with 40% activity in their property needing to raise between £300,000 and £5 million. There is a £1,499 arrangement fee, and early repayment charges apply.
Aaron Strutt, product director at Trinity Financial, says: "More lenders have started offering sub 4% fixes, which is a good sign, especially as there were recent rate increases. Some of the 3.99% rates are only available to higher earners.
"Santander has just announced it is withdrawing its 3.99% residential mortgage available for property purchases, remortgages and product transfers. The rate will be pulled at 10 pm on the 3rd March, so there is still time to apply."
Nationwide representative example: A capital and interest mortgage of £400,000 payable over 30 years, initially on a fixed rate basis at 3.99% for five years and then the standard variable rate currently at 7.49% for the remaining 25 years. The 3.99% rate would require 60 monthly repayments of £1,907.36 followed by 300 payments of £2,612.29. The total amount repayable would be £899,707.60 made up of the loan amount, plus interest (£498,128.57) and £1,499 (product fee), £65 (final repayment charge), £15 (completion fee). The overall cost for comparison is 6.2% APRC representative.
Is it a good time to take a 3.99% fixed rate?
With lenders jostling for market share and the cost of funds falling, further reductions look likely, especially as the month-end approaches and banks push to meet lending targets. However, the issue with the mortgage market is that it is difficult to predict exactly what will happen to rates.
Competition between the banks and building societies is clearly ramping up, and borrowers could be in for even better deals in the weeks ahead. A sub-4% fixed rate offers good value for money.
Many of our clients opt for two-year fixes, although three and five-year fixes remain popular.
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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