Nationwide Escalates Mortgage Price War with 3.78% Five-Year Fixed Rate
In what appears to be an emerging price war among major high street lenders, Nationwide has recently announced further reductions of up to 0.26% across selected products in their fixed-rate mortgage range. This cut positions them ahead of HSBC and Barclays in the race to offer the most competitive two- and five-year fixed rate mortgages.
Nationwide is now offering a 3.78% five-year fixed rate and 4.10% two-year fixed for home movers and a sub-4% rate for those looking to remortgage. These options are available to borrowers with a 40% deposit, for loan amounts ranging from £300,000 to £5 million, and come with an arrangement fee of £1,499
Representative example for a 5-year fixed rate:
For a purchase of £1,000,0000 with a capital and interest mortgage of £600,000 payable over 25 years:
- Initial Rate: 3.78% for 5 years, then reverts to Nationwide’s standard variable rate, currently 7.74% for 20 years
- Payments: 60 payments of £3,102.40, followed by 240 payments of £4,281.26
- Total Amount Repaid: £1,213,711.40 (including the initial loan amount, interest, product fee, final repayment charge, and completion fee)
- Overall Cost for Comparison: 6.2% APRC representative
Representative example for a 2-year fixed rate:
For a purchase of £1,000,0000 with a capital and interest mortgage of £600,000 payable over 25 years:
- Initial Rate: 4.10% for 2 years, then reverts to Nationwide’s standard variable rate, currently 7.74% for 23 years
- Payments: 24 payments of £3,208.32, followed by 276 payments of £4,448.38
- Total Amount Repaid: £1,304,817.56 (including the initial loan amount, interest, product fee, final repayment charge, and completion fee)
- Overall Cost for Comparison: 7.3% APRC representative
Harps Garcha, Director of Brooklyns Financial, commented: “As the first high street lender to break into the sub-4% mortgage market, it's encouraging to see Nationwide continuing to adjust their pricing and lead with the most competitive two- and five-year fixed rate.
I hope these reductions will prompt other lenders to follow suit and boost competition, particularly in the two- and three-year fixed rate markets.”
The Importance of Expert Guidance
Given the ever-changing market conditions, seeking the assistance of a mortgage consultant is more important than ever. With their expertise, you can navigate these fluctuations effectively and find the best possible mortgage options tailored to your needs.
Our experienced mortgage consultants are ready to assist you with personalised guidance every step of the way. For an initial consultation, speak with our experts or call us at 01628 564631. We're here to help you navigate your mortgage journey with informed advice and care.
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The information contained within was correct at the time of publication but is subject to change.
Source: Nationwide for Intermediaries
