Nationwide lowers mortgage rates again with two-year fixes now starting from 4.10% and five-year fixes from 3.78%

by Aaron Strutt

Aug 22 2024

Mortgage lenders have continued to lower their fixed rates over the last few days. 

Nationwide for Intermediaries is the latest big mortgage lender to improve its offering. It now has a two-year fix at 4.10% and a five-year fix at 3.78%. These rates swiftly undercut HSBC after the banks repriced new and improved rates.

Nationwide’s new and most competitively priced rates are available to home movers borrowing between £300,000 and £5 million. There are £1,499 arrangement fees, and applicants must make a 40% deposit to qualify.

Aaron Strutt, product director at Trinity Financial, says: "Many borrowers are not sure whether they should lock into a fixed rate now or take variable rates. Fixed rates have been coming down, and they may get cheaper, but it seems unlikely the lowest rates available to those with the biggest deposit will come dramatically anytime soon. 

"Many of the recent rate cuts mainly benefit the borrowers with 40 per cent deposits, which is partly why the Bank of Mum and Dad has been busier than ever. Parents are handing over cash so their adult children can access more attractive rates. Ideally, first-time buyers need to have a 10% or 15% deposit to access the more reasonably priced rates."

Representative example: A capital and interest mortgage of £300,001 payable over 30 years, initially on a fixed rate basis at 4.10% and then on the lender's 7.74% standard variable rate for the remaining 33 years. The 4.10% rate would require 24 monthly repayments of £1,449.60 followed by 336 payments of £2,109.90. The total amount repayable would be £745,295.80 made up of the loan amount, plus interest (£443,714.43) and £1,499 (product fee), £65 (final repayment charge), £15 (completion fee). The overall cost for comparison is 7.4% APRC representative.

Representative example: A capital and interest mortgage of £300,001 payable over 30 years, initially on a fixed rate basis at 3.78% and then on the lender's 7.74% standard variable rate for the remaining 30 years. The 3.78% rate would require 60 monthly repayments of £1,394.46 followed by 300 payments of £2,040.39 The total amount repayable would be £697,363.60 made up of the loan amount, plus interest (£395,783.92) and £1,499 (product fee), £65 (final repayment charge), £15 (completion fee). The overall cost for comparison is 6.4% APRC representative.

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.