Nationwide launches five-year fixed rate mortgage at 0.99%
The deal comes with a £1,499 fee and is available to home movers and people remortgaging. Borrowers will need a 40 per cent deposit.
It is the latest sub-1 per cent offer to launch in recent weeks as competition hots up among lenders. However, most of these deals are for two years.
Nationwide has also expanded its mortgage offering with the launch of a new three-year fixed-rate mortgage, with rates starting at 0.94 per cent.
Henry Jordan, director of mortgages at Nationwide, said: “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 per cent 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.”
Rachel Springall, finance expert at Moneyfacts, said: “Nationwide Building Society has ramped up the mortgage rate war by offering the first sub-1 per cent five-year fixed rate mortgage onto the market.
“This comes just a few weeks after we witnessed HSBC cutting its own five-year fixed rates, which includes a low-rate deal priced at 1.06 per cent, a market-leading rate.
“It will be interesting to see after notable reductions have already been made in the two-year fixed market, whether five-year fixed deals will continue to be cut – but regardless this will be great news to borrowers looking for a low-rate deal.”