The battle to push mortgage rates further below 4% has intensified as Nationwide is poised to cut some rates from Friday.
Reductions of up to 0.19 percentage points will apply to two, three and five-year fixed-rate products being offered by Nationwide.
Nationwide’s lowest rate will stand at 3.60% and will be available to new and existing customers with a 40% deposit who are looking to move home and taking out a two-year fixed rate product, with a £1,499 fee.
It is also offering a three-year fixed-rate deal with no fee for first-time buyers with a 25% deposit, with a rate of 4.21%.
Carlo Pileggi, Nationwide’s head of mortgage products, said: “We’re making rate cuts across our mortgage range, which should be welcome news to all types of borrowers.”
According to Moneyfactscompare.co.uk, Santander is offering a deal as low as 3.55%, fixed for two years, to borrowers with a 40% deposit. The deal has a £999 fee and offers £250 cashback.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: “It is fantastic news for borrowers to see further reductions to mortgage rates, with Nationwide now offering one of the lowest fixed-rate deals across the entirety of the mortgage market at 3.60% for two years.
“The general sentiment across the mortgage market has been positive over recent weeks, and now with the Budget finally revealed, swap rates are looking rather stable, nearer their 30-day lows, which gives borrowers hope for further rate cuts to come.”
Ms Springall said that in general, lenders can pause rate moves in times of uncertainty, “so it wasn’t too surprising for rate changes to be few and far between in the run-up to the Budget this week”.
She added: “Now is the perfect time for borrowers to seek advice to assess the latest deals to hit the market, particularly as there have been more then 40 lenders cutting fixed-rate deals since the start of November.
“It is worth pointing out that the lowest-rate deals might not always be the best choice, so it’s important borrowers weigh up any up-front fees and cost-saving incentives before they apply.”
