Expert Knowledge & Professional Service

Nationwide for Intermediaries has recently lowered its mortgage rates and is now offering two-, three-, and five-year fixes at rates below 4%.

Nationwide is the UK's largest building society, and it has launched two and five-year fixes at 3.84%, with the three-year fix still below 3.95%. 

These mortgages are available to borrowers with a 40% deposit who are buying a property and need to raise between £300,000 and £5 million. There is a £1,499 arrangement fee, and early repayment charges apply. The lender also has a sub-4% five-year fixed remortgage rates.

Aaron Strutt, product director at Trinity Financial, says: "If you are on the hunt for a mortgage there are some great options to choose from at the moment. It was not long ago that it looked like rates were going up, but now we have a range of lenders offering sub-4% fixes.

"While the lowest rates are available to borrowers with a 35% or 40% deposit, the fixes with a 30% or 25% deposit are not much more expensive. Lenders are working hard to attract borrowers, especially now that the stamp duty rate has been increased.  

Nationwide representative example: A capital and interest mortgage of £300,000 payable over 30 years, initially on a fixed rate basis at 3.84% for 24 months and then the standard variable rate currently at 7.24% for the remaining 28 years. The 3.84% rate would require 24 monthly repayments of £1,404.71 followed by 336 payments of £2,009.45. The total amount repayable would be £710,402.24 made up of the loan amount, plus interest (£408,887.70) and £1,499 (product fee), £65 (final repayment charge), £15 (completion fee). The overall cost for comparison is 6.9% APRC representative.

Should you take a two, three or five-year fix mortgage? 

The price difference between the two-, three-, and five-year fixes is currently minimal, with some lenders offering their lowest rates to borrowers opting for two-year fixes over five-year fixes. Longer-term fixes are typically less expensive than two-year rates.

With the money markets predicting at least three Bank of England base rate reductions this year, there is a fair chance that mortgage rates could come down, and cheaper fixed-rate options may become available. However, things change very quickly in the mortgage industry so if you are planning to stay in your property for the foreseeable future then it may well be worth taking a five-year fix, if you think the Bank of England will need to act to sure up the economy and lower rates to stimulate the property market, then a two-year fix may be best for you.  

Call Trinity Financial on 020 7267 9399 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

Barclays has enhanced its mortgage affordability calculations in a move that could allow many homebuyers and remortgage customers to borrow more money.
 
In a message to Trinity Financial explaining the changes, Barclays said: "We know that affordability remains one of the biggest challenges facing your clients. That's why from today, we've enhanced our mortgage affordability calculations. We have cut our stress rates for residential purchase and remortgage applications."
  
A family could now potentially borrow up to £30,750 more (subject to application, financial circumstances and borrowing history).
 
Whether you are stepping onto the housing ladder, moving home or remortgaging, this update could make a meaningful difference in what's possible in today's market.

Barclays has also increased the maximum loan amounts for lower deposit property purchases across all of its mortgages, to £640,000 for houses and £310,000 for flats, enabling more buyers to access homes in higher price brackets with a 10% deposit.

Aaron Strutt, product director at Trinity Financial, says, " Many of the big lenders have concentrated their efforts on issuing more generous loan sizes, and lots of borrowers are starting to notice the difference.

"With so many lenders offering mortgages of around £30,000 more the income stretch mortgages are not being used as much and borrowers are finding it easier to get the loan size they need. They are also getting enough money through the biggest lenders, which is good news as they generally offer the most competitive prices."

Call Trinity Financial on 020 7267 9399 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage 

In a move welcomed by many, the Bank of England has cut interest rates from 4.5% to 4.25% - the lowest rate since May 2023. 

A lower base rate is designed to boost spending by making borrowing, including mortgages, cheaper - but cutting rates means savers get lower returns.

At its meeting ending on 7 May 2025, the Bank of England's Monetary Policy Committee voted by a majority of 5–4 to reduce Bank Rate by 0.25 percentage points, to 4.25%. Two members preferred to reduce Bank Rate by 0.5 percentage points, to 4%. Two members preferred to maintain Bank Rate at 4.5%.

The cheapest mortgage rates start at just over 3.8%, and now that the base rate has come down, they may well get lower over the coming weeks.

Given the scale of fixed-rate price reductions we have seen recently, it is a good time to take a mortgage. We hope the cheapest fixed rates get closer to 3.5% this year, meaning many people will have more money to spend and boost the economy.

Chancellor Rachel Reeves was quoted on the BBC website as saying: "This interest rate cut is welcome news, and the fourth since we came into government making it cheaper for businesses to borrow, reducing the cost of a new mortgage, making homeownership more accessible, car finance more affordable and easing the pressure on those paying off personal loans. But there is more to do, and I know families are still facing cost of living pressures."

Call Trinity Financial on 020 7267 9399 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage 

Most borrowers taking out a mortgage opt for a two or five-year fix. But is it better to fix in for two or five years?

Mortgage rates have been coming down, and some of the two-year fixed rates currently undercut the five-year fixes.

The length of the mortgage rate borrowers take often depends on their attitude to risk. Most people do not want to fix into a higher rate than necessary, especially with multiple banks and economists expecting the Bank of England base rate to come down to around 4% this year. However, given current global affairs, there is also a chance rates could go up. 

With so many homeowners due to remortgage this year and huge numbers of first-time buyers and home-movers set to buy, choosing the right mortgage deal is essential and not necessarily straightforward.  

Aaron Strutt, product director at Trinity Financial, says: “Many borrowers want payment security, so they opt for five-year fixes. Those taking two-year deals often suspect rates will come down and there may be more competitively priced rates over the near to medium term. I know Trinity's director, Jed Newton, expects rates to decrease over the near term.

“We used to tell many borrowers that when taking a variable or tracker mortgage, they need to be able to afford to take the gamble by opting against the payment security of a fix, and the same almost applies to borrowers taking two-year deals today. Many people don't want to take a five-year fix and then see rates come down, but ultimately, they may give up the chance of longer-term payment security.

"If you can get a two or five-year rate close to 4%, then you are getting pretty decent value for money."

Price gap between two and five-year fixes

There is a relatively small price gap between two- and five-year fixes for most borrowers unless they have a smaller deposit. Not long ago, the five-year fixes were much cheaper, but this is not always the case anymore. 

Many lenders offer five-year fixes at their lowest rates, and they also offer more generous loan sizes when borrowers opt for a five-year fix. It is worth noting that some fixes are available below 3.8% at the moment.

What other mortgage options are there?

There is currently a good choice of mortgage rates. Some lenders offer one-year fixes to new and existing customers. There are also 1.5-year, three-, four-, and ten-year fixes. There are also fixed-for-term mortgages, with between 11 and 40-year fixes, designed to enable some borrowers to secure more generous loan sizes.

More banks and building societies also offer competitively priced Bank of England base rate mortgages, and some do not have early repayment charges.

Are there other reasons to opt for shorter-term fixes or tracker rates?

• If you plan to sell your property soon, opting for a longer-term fix may not make sense because of the costs involved in repaying the mortgage early.
• If you are a first-time buyer or have a low deposit, it often makes sense to take a short-term fix and assess the market in two years, when you hopefully have more equity in your home.
• If you are not getting on with your partner and worry you may separate or divorce, a shorter-term fix or tracker may also make sense.
• Some lenders do not offer any early repayment charge-free rates apart from their expensive standard variable rates. This means tracker rates are a good bet for those needing flexibility, potentially to make regular or lump sum overpayments. 

Porting your mortgage

If you are considering selling your property and moving up the ladder, you could port your mortgage, provided you meet the lender's new affordability rules. However, if you need to pay it off, you could have higher early repayment charges with a five-year fix.

Call Trinity Financial on 020 7267 9399 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage 

Which lenders offer 5 or 5.5 times salary mortgages?

As of May 2025, there is a good selection of lenders offering mortgages at 5 or 5.5 times your salary. 

Borrowing at 5 times single or joint salary is more common in the mortgage industry, as most lenders' qualification rules are more lenient. Higher income multiples of 5.5 or 6 times salary are typically reserved for borrowers who meet specific criteria, such as being a first-time buyer, meeting higher income thresholds, having larger deposits, or working in certain professions. 

Some of the UK's larger mortgage lenders, including HSBC, Santander, and Halifax, have announced they have eased their mortgage affordability rules. In many cases, they will be issuing mortgages worth up to £39,000 more. This may mean more borrowers do not need income stretch products.

Aaron Strutt, product director at Trinity Financial, says, "Mortgage lenders use affordability calculators to determine how much applicants can borrow, and credit cards, loans, school fees, car finance, children, and other regular credit commitments reduce the maximum borrowing amount.

"This makes high loan-to-income multiples like 5.5 times salary mortgage useful, as often borrowers need 5.1 or 5.2 times salary to get the mortgage loan size they require. That said, the Nationwide Helping Hand product offering six times salary has been incredibly popular."

Banks and building societies offering 5 to 5.5 times salary mortgages

Source: Lender websites

Key Considerations

• Income thresholds: Higher income multiples are generally available to individuals or households with higher earnings. For instance, Santander requires a minimum income of £100,000 for a 5.5x multiple. Some smaller lenders offer more generous income multiples, but they charge higher rates.

• Deposit size: Lenders often require larger deposits for higher income multiples. For example, Santander offers 5.5x income multiples up to a 75% LTV, necessitating a 25% deposit.

• Professional mortgages: Some lenders offer higher income multiples to professionals in certain fields, such as doctors, lawyers, and accountants. Clydesdale Bank provide such options.

• First-Time Buyers: Products like Nationwide's Helping Hand and Leeds Building Society's Income Plus are designed to assist first-time buyers with higher borrowing limits.

Are 5 or 5.5 times salary mortgages more expensive? 

The bigger banks and building societies offer 5 or 5.5 times salary mortgages, and do not typically charge higher rates for their more generous loan-to-income calculations. 

Some specialist lenders, such as Hodge, Tipton, and Kendington, charge higher rates if you need an income boost.

Regulatory Limits

The Bank of England restricts lenders from offering more than 15% of their new mortgages at income multiples above 4.5 times salary. This means that while higher multiples are available, they are limited and subject to stricter eligibility criteria. There is a chance these rules could be relaxed after campaigning from the Nationwide Building Society and pressure from the UK government, which is currently pushing for economic growth. 

If you're considering a mortgage at 5 or 5.5 times your salary, it's advisable to consult with a mortgage broker who can assess your individual circumstances and guide you to suitable lenders.

Call Trinity Financial on 020 7267 9399 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage