Nationwide targeting purchase market with 3.99% five-year fix for mortgages between £299,000 and £5 million

by Aaron Strutt

Jul 24 2024

Nationwide for Intermediaries has launched a 3.99% five-year fixed-rate mortgage and a 4.41% two-year fix. According to Moneyfacts, the last sub-4% rates were available in April.

Nationwide’s new and most competitively priced rates are available to home movers borrowing between £299,000 and £5 million. They have £1,499 arrangement fees, and applicants will need a 40% deposit to qualify.

First-time buyers and remortgaging customers have to pay higher rates when they take a Nationwide mortgage, so they may want to shop around, particularly as the market is more competitive and borrowers have access to a wide choice of products.

Aaron Strutt, product director at Trinity Financial, says: "It is great news that we have a sub-4% fix again as it shows mortgage pricing is heading in the right direction, particularly after such a prolonged period of price hikes. Hopefully, more lenders will match or improve on Nationwide's product soon. 

“Nationwide’s new two-year fix at 4.41% is a decent rate that many borrowers will find more attractive than the 3.99% fix, mainly because they expect rates to come down over the next year or so. It also undercuts Barclays two-year rate which has been among the lowest deals available for a while."

Representative example: A capital and interest mortgage of £400,000 payable over 35 years, initially on a fixed rate basis at 3.99% and then on the lender's 7.99% standard variable rate for the remaining 30 years. The 3.99% rate would require 60 monthly repayments of £1,768.70 followed by 360 payments of £2,719.11. The total amount repayable would be £1,086,580.60 made up of the loan amount, plus interest £685,001.16 and £1,499 (product fee), £65 (final repayment charge), £15 (completion fee). The overall cost for comparison is 6.8% APRC representative.

Representative example: A capital and interest mortgage of £400,000 payable over 35 years, initially on a fixed rate basis at 4.41% and then on the lender's 7.99% standard variable rate for the remaining 33 years. The 4.41% rate would require 24 monthly repayments of £1,870.79 followed by 396 payments of £2,798.64. The total amount repayable would be £1,154,739.40 made up of the loan amount, plus interest (£753,159.96) and £1,499 (product fee), £65 (final repayment charge), £15 (completion fee). The overall cost for comparison is 6.8% 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.

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