The i - Fresh wave of home-loan reductions heralds return of the sub 5% mortgage
A fresh wave of mortgage rate reductions has led to a number of deals sitting below 5 per cent hitting the market.
The latest cut is from Nationwide, which announced it is reducing its three-year and five-year fixed deals, making them the cheapest available to new customers buying a home.
From Wednesday, it will lower existing rates by 0.45 per cent. A three-year fix will be reduced to 4.99 per cent and a five-year fix will fall to 4.74 per cent for new purchases. For those re-mortgaging, the three-year fix will become 5.29 per cent and the five-year fix will sit at 4.89 per cent.
Aaron Strutt of Trinity Financial told The i: “Lenders are still lowering their rates as the cost of funding mortgages continues to fluctuate.
“Many of the banks and building societies are a long way off hitting their lending targets and given the reduction in the number of property purchases going through, they know the only real way of getting more mortgages agreed is to lower rates. It is good to see more deals getting cheaper.”
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