Nationwide undercuts competitors again with 3.64% fixed mortgage which is the cheapest deal launched since 2022
Nationwide is the latest lender to make big changes to its mortgage rates and it is now offering a 3.64% fix which is the lowest residential two-year fix available since 2022.
Many of the major lenders have cut rates for borrowers with all different deposit sizes over the past two weeks, including a host of high street banks.
The sudden competition between lenders is partly in response to market interest rate expectations, with the Bank of England now considered more likely than not to cut interest rates again before the end of the year. Mortgage funding costs have been getting lower and the lenders are keen to attract borrowers.
Thisismoney.co.uk reports the last time there was a widely available two-year fix that was lower than 3.64% was in September 2022, according to Moneyfacts, when rates shot up after the Liz Truss-Kwasi Kwarteng mini-Budget, with its wave of unfunded tax cuts unsettling bond markets.
What are the details of the new 3.64% Nationwide rate?
Nationwide’s most competitive rate is 3.64%, and it is available for homebuyers to borrow between £300,000 and £5 million. There is a £1,499 arrangement fee, and applicants must make a 40% deposit to qualify. The lender has a sub 3.85% five-year fix has the same minimum and maximum loan sizes and the same arrangement fee.
Aaron Strutt, product director at Trinity Financial, says: "Hopefully some of the other lenders will lower their rates again so they will come down a bit more. Nationwide often has the cheapest rates and it is always keen to top the best buy tables."
Representative example: A Nationwide capital and interest mortgage of £400,000 payable over 30 years, initially on a fixed rate basis at 3.64% for 24 months and then on the lender's 6.24% standard variable rate for the remaining 28 years. The 3.64% rate would require 24 monthly repayments of £1,834.50 followed by 336 payments of £2,558.79. The total amount repayable would be £903,781.44 made up of the loan amount, plus interest (£502,266.77) and £1,499 (product fee), £80 (final repayment charge), £25 (completion fee). The overall cost for comparison is 6.4% APRC representative.
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