Fixed-term mortgage rates dip to 4% and below

In a significant boost for first-time buyers and those looking to re-mortgage, Nationwide Building Society reduced their fixed-term mortgage rates on 24 July 2024. This move sees rates decrease by up to 0.25% across their 2, 3, and 5-year fixed-rate mortgages.

Barclays Bank has followed suit, announcing reductions in two five-year fixed-rate mortgages for their eligible Premier Banking customers. For home buyers with a 40% deposit, the mortgages include a £899 product fee, with rates at 3.83 and 3.84%.

Leading mortgage change
Nationwide’s rate reductions are predicted to spur competition amongst other high street lenders, potentially leading to more attractive mortgage deals. So, what exactly does the building society have on the table now?

• First-time buyers are offered a 5-year fixed-rate mortgage at 85% LTV (Loan To Value) with a £999 fee, reduced to 4.55%. *
• Home movers could benefit from a 5-year fixed-rate mortgage at 60% LTV. * With a £1,499 fee, the rate is now 3.99%, and with a £999 fee, it stands at 4.04%.
• Nationwide’s incentive “Helping Hand" offers a loan of up to 20% more too, opening options up for many prospective buyers and movers.

New Opportunities for Home Movers and First-Time Buyers
The building society’s actions have created a timely opportunity to review and consider your mortgage options. Whether you are a first-time buyer or a homeowner with a mortgage, this could be your chance to secure more affordable terms.

If you are making your first steps onto the property ladder, you might now see homeownership becoming more attainable. For those who already own a home, lower rates can offer stability and predictability in mortgage payments, making it easier to manage household budgets.

“The Bank of England has finally made its much-anticipated move and cut interest rates from a 16-year high. This will give borrowers an affordability boost, ease pressure on household finances and in doing so, assist the wider economy. Positivity spreads quickly and while the rate cut would have already been priced in, this will revitalise activity.

Ahead of this reduction, lenders have been making cuts to the on-sale mortgage rates with a number of big-name lenders announcing lower rates. With Nationwide recently becoming the first high street lender to reprice mortgage rates below 4% again, others are expected to follow suit. This will be a welcome reprieve for borrowers who are looking to buy or remortgage.

Mortgage holders nearing the end of their fixed-rate period and prospective buyers can now make informed decisions with greater confidence, instead of delaying and speculating.”

Nick Harrison CeMAP, Mortgage & Protection Advisor, Pennymatters.

Mortgage Advice
If you wish to re-mortgage or to secure a mortgage, we recommend seeking professional advice to achieve your best deal. Please feel free to get in touch with our trusted partner, Nick Harrison, on 01344 577886, or by email, here.

Subject to eligibility. *
Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.

Sources:

Even more sub-4% mortgage deals are now on the market | The Independent

Nationwide mortgages dip below 4% as mutual makes cuts to fixed term deals (nationwidemediacentre.co.uk)