Nationwide launches sub 1% five-year product

Essex Home Finance
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Nationwide will debut a sub 1% five-year mortgage, and cut rates on a range of other deals by up to 40 basis points.

The UK’s largest mutual says it will launch a 60% loan-to-value offer at 0.99%, with a £1,499 fee, available for home movers or remortgage.

The deal comes to market tomorrow (21 July).

It will also launch a three-year fixed-rate mortgage range at various LTV options, running from 60% through to 95%, stopping at 85% for remortgages. 

Rates on the range start at 0.94% and match the equivalent rates on the society’s two-year fixed mortgages. 

The new products come with both no fee and £999 fee options and are available to first-time buyers, for remortgages, as well as new customers and existing members looking to move home.

The mutual will also cut rates across its two and five-year fixed-rate products by up to 40 basis points. 

The new rates include:

For first-time buyers, a two-year fixed-rate deal at 90% LTV reduced by 0.35% to 2.44%, with a £999 fee.

And a two-year fixed-rate offer at 90% LTV down by 0.30% to 2.74%, with no product fee.

For new customers moving home, a two-year fixed-rate mortgage at 90% LTV reduced by 0.35% to 2.34%, with a £999 fee.

And a two-year fixed-rate product at 90% LTV cut by 0.40% to 2.59%, with no product fee.

For those looking to remortgage, a five-year fixed–rate offer at 75% LTV down by 0.20% to 1.29%, with a £999 fee.

And a two-year fixed-rate deal at 85% LTV cut by 0.30% to 1.99%, with a £999 fee. 

The building society says for existing members moving home, it will also reduce rates by up to 0.30% on selected two and five-year products up to 95% LTV.

It adds it will also reduce selected further advance, family deposit mortgage and switcher rates between 60% and 95% LTV by up to 0.80%.

Nationwide director of mortgages Henry Jordan says: “As the country’s biggest building society, it’s important that we continue to play a leading role in supporting people not only into a home of their own, but as they move on to their next home. 

“That is why we are launching the sub-1% five-year fixed-rate mortgage for both new customers and existing members either moving home or switching product – something we feel will give them greater certainty over their payments for a longer period.

“The significant reductions we’re making across a wide range of our mortgages demonstrates our ongoing support for all types of borrowers and, by expanding our range with the launch of new three-year products, we are also giving them even more choice when they come to make that decision on how long to fix that mortgage rate.”

SPF Private Clients chief executive Mark Harris adds: “Just when it looked as though mortgage rates couldn’t possibly go any lower, they have.

“While there has been a flurry of sub-1 per cent two-year fixes in recent weeks, this is the first five-year fix pegged at such a low rate. Borrowers must have a 40 per cent deposit or similar level of equity, and pay a £1,499 fee to access the deal.

“With Nationwide also offering a two-year fix at 0.91 per cent, the building society has done the double with the cheapest two- and five-year fixes on the market.

“As lenders are cash-rich and eager for business, we wouldn’t bet against others following suit and offering similarly cheap products in coming weeks.”

Last month, high street rival TSB cut rates on several residential loans, which featured the lender offering a sub 60% loan to value remortgage at 0.94% for a two-year fixed rate.

Original Article from Mortgage Strategy 20/07/21

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