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Major lenders continue to cut their mortgage rates on a daily basis, with Nationwide set to launch a new best buy offer on the market tomorrow.
The building society is offering a five-year fixed rate of 3.83 per cent, which is the cheapest mortgage available from any lender.
However, it is only available to existing Nationwide customers who are refinancing their mortgage. It also carries a fee of £1,499. Without fee, the mortgage has an interest rate of 4.1 per cent.
Down: Nationwide is the latest mortgage lender to cut some of its interest rates
The best deal on the open market remains Barclays’ five-year moving guarantee, which is priced at 3.84 per cent with a lower fee of £899.
For those refinancing their mortgage (and not existing Nationwide customers), the best deal is Barclays’ 4.06 per cent five-year fixed rate with a fee of £948.
Halifax is also planning to cut mortgage rates on its three-year fixed-rate products tomorrow.
Some interest rates will be cut by as much as 0.37 percent, although full details will not be revealed until then.
Stephen Perkins, managing director of brokerage Yellow Brick Mortgages, told Newspage: ‘Further rate cuts by two of the biggest players in the mortgage market send a clear and strong message to borrowers.
‘With increasing competition between lenders, this is a fantastic time for borrowers to make their property dreams a reality.’
NatWest has cut many of its mortgage rates today and now offers some of the best deals for first-time buyers.
Its five-year rate of 4.68 per cent is the best option for those buying a home with a 10 per cent deposit and is available to new customers only.
Santander has also made reductions today.
Most major lenders have cut mortgage rates in recent weeks.
This is partly because the Bank of England cut the base rate from 5.25 percent to 5 percent in early August, although lenders had priced that move in to some extent beforehand.
Inflation data, which influence the base interest rate, will be published tomorrow.
Analysts predict the rate could rise for the first time this year in July, and some mortgage experts expect this could slow the pace of mortgage rate cuts.
Justin Moy, managing director of mortgage brokers EHF, told Newspage: “With some potentially worrying inflation figures on the horizon, it will be interesting to see whether lenders sit on their hands for a while.”
What are the best two-year fixed mortgage rates?
The mortgages with the lowest interest rates right now are five-year fixed rates.
This is because many borrowers still believe that rates will fall in the next two years and prefer to opt for a two-year fix, so banks have to offer more tempting rates to secure five-year deals.
However, experts now believe that a return to the sub-2% rates that were available in 2021 and early 2022 is unlikely even within five years.
The most attractively priced two-year loan at the moment is from Barclays, with an interest rate of 4.22 per cent and a fee of £899. It is aimed at home buyers with a deposit of at least 40 per cent.
The best two-year refinance rate is from NatWest at 4.34 per cent. Again, this is reserved for those on a 40 per cent rate and the buyer must pay a fee of £1,544.
