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Nationwide goes sub-5% on a two-year fixed mortgage

Nationwide goes sub-5% on a two-year fixed mortgage
Shekina Tuahene
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Shekina Tuahene

Nationwide has reduced rates across its two, three and five-year fixed mortgages by as much as 0.38% to start from 4.64%.

This headline rate of 4.64% applies to its five-year fix for new borrowers moving home at 60% loan to value (LTV) with a £999 fee. This has been reduced by 0.1%. 

The two-year fix also at 60% LTV with a £999 fee has been reduced by 0.25% to 4.99%, while the three-year fix has gone down by 0.05% to 4.94%. 

Nationwide said this made it the first major lender to offer a two-year fix below 5%. 

At 85% LTV, a five-year fix for new borrowers moving home with a £999 fee has been cut by 0.16% to 4.94%. 

Rates for first-time buyers have been cut by up to 0.31% up to 95% LTV, including a deal at 90% LTV which is fixed for two years and priced at 5.72% after a 0.18% reduction. This has a £999 fee. 

The mutual’s remortgage rates have been reduced by up to 0.38% while switcher rates have been lowered by up to 0.25%. 

Pricing on additional borrowing products has also been cut by up to 0.25%. 

Nationwide: Reduced rates eight times in three months

Henry Jordan, director of home at Nationwide Building Society, said: “We’re making further rate cuts across our fixed rate mortgage range to ensure we continue to cement our position as one of the most competitive lenders in the market.  

“Over the last three months, we have reduced rates eight times and, over that period, that has meant our rates have fallen by up to 1.39 percentage points as we look to maintain our support for potential and existing homeowners, as well as brokers, by offering attractively priced products.”