Nationwide lowers £300,000+ mortgage rates again with cheapest two-year fix starting from 4.19%
Tags: Remortgages, Residential mortgages
Quick Summary
Nationwide has lowered mortgage rates again, with its cheapest two-year fixed rate now starting from 4.19% for larger mortgages between £300,000 and £5 million. The latest cuts apply to first-time buyers, home movers, remortgage customers and existing Nationwide borrowers switching deals. Rates have been reduced across two, three, five and ten-year fixes, with some products cut by up to 0.25 percentage points. Borrowers usually need a larger deposit or more equity to access Nationwide’s lowest fixed rates, although there are also competitive options for those with 15% or 20% deposits. Trinity Financial’s brokers can compare Nationwide mortgage rates with other leading lenders and help borrowers secure suitable fixed or tracker deals before products change.
Nationwide is lowering mortgage rates for the third time this month across its fixed-rate range for new and existing customers, with its cheapest fixed rate now starting from just 4.19%.
The latest reductions take effect from Friday 26 June and apply to first-time buyers, home movers, remortgage customers and existing Nationwide borrowers switching to a new deal.
Rates are being reduced by up to 0.25 percentage points across two, three, five and ten-year fixed-rate mortgages. The move will be welcomed by borrowers looking for cheaper fixed rates, particularly as many customers are coming off older, lower-priced deals and facing higher monthly repayments.
Nationwide’s 4.19% fix for mortgages between £300,000 and £5 million
Nationwide’s lowest fixed rate is now a two-year fixed rate at 4.19% with a £1,499 product fee. The new three-year fix is just below 4.45% with a £999 fee and the latest five-year fix is just over 4.30% with a £1,499 fee. Borrowers will typically need a larger deposit or more equity in their property to access the cheapest rates.
A five-year fixed rate for borrowers with a 10% deposit with a £999 fee is now below 4.70% through Nationwide, which will appeal to borrowers with smaller deposits who want longer-term payment certainty. First-time buyer rates are being reduced by up to 0.18 percentage points across products for those with a 5% deposit. Remortgage and switcher rates are also reducing as well as Nationwide's remortgage rates by up to 0.25 percentage points.
Representative example: A capital and interest Nationwide mortgage of £400,000 payable over 30 years, initially on a fixed rate basis at 4.19% for two years and then on the lender's standard variable rate, currently 6.49% for the remaining 23 years, would require 24 monthly repayments of £1,961.13 followed by 336 payments of £2,504.95. The total amount repayable would be £888,730.32 made up of the loan amount, plus interest (£487,217.17) and £0 (product fee), £0 (final repayment charge), £15 (completion fee). The overall cost for comparison is 6.3% APRC representative.
Arbuthnot Latham’s latest Treasury Market Commentary
Arbuthnot Latham’s latest Treasury Market Commentary says UK politics is dominating domestic headlines with market speculation focusing on a potential new chancellor and the huge implications for fiscal policy and bond yields. It adds markets have been relatively calm given the likelihood of a smooth and swift transition to a new Prime Minister as we await some clarity on the new leader’s policy direction.
The UK Budget date is yet to be confirmed but will "likely be around October and will be a key volatility risk event as the first under the new leader and chancellor. Economic data this week showed the US continues to strongly outperform with both the UK and EU facing significant structural headwinds to growth and demand."
Finally, it adds that the Iran conflict continues to drive macro sentiment as progress is reportedly being made despite the conflicting headlines, with a permanent ceasefire in all parties’ interests.
Should borrowers take a two-year or five-year fixed rate?
Many borrowers are still choosing between two and five-year fixed rates.
A two-year fix can appeal to borrowers who think rates may fall and want to review their mortgage sooner. A five-year fix may suit customers who want longer-term certainty and protection from future rate rises.
The right option depends on the borrower’s income, deposit, monthly budget, future plans and attitude to risk. Those planning to move, repay part of their mortgage or make changes to their borrowing may also need to consider early repayment charges and product flexibility.
Speak to a Trinity Financial adviser today
The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.
Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar
The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.
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