Lenders nationwide lower mortgage rates contrasting the trend of increases from other institutions.
Loan news you should know:
Nationwide is slashing mortgage rates as low as 3.9%, bucking the trend of some lenders upping their fixed rates. Starting tomorrow, buyers and remortgagers can reap the benefits of these lowered rates, with the new 2-year fixed rate standing at just 3.9%.
The best part? Those with a 40% deposit can secure a 2-year fixed rate of 3.9% for a modest £1,499 fee. For those with a more modest deposit, rates are still competitive - a 25% deposit will get you a 4.04% two-year fixed rate, with a £999 fee attached. The five-year fixed rate for a 15% deposit remains at 4.29% with the same £999 fee. For those favoring a two-year fix, the lowest remortgage rates begin at 3.92%.
But why the rise in rates on some lenders' side?
Nationwide's move goes against the grain due to three major lenders increasing their fixed rates within the past 24 hours. This surge is largely influenced by predictions of fewer Bank of England interest rate cuts for the remainder of 2025. Halifax, Accord, and Santander have all jumped on the bandwagon, raising rates by up to 0.13 percentage points on numerous products.
The pricing of fixed-rate mortgages is primarily influenced by Sonia swap rates - an inter-bank lending rate based on future interest rate expectations. Lately, 5-year and 2-year Sonia swaps have risen by approximately 0.2 percentage points, putting pressure on mortgage borrowers.
In the words of Andrew Montlake, chief executive at broker Coreco: "Lenders are slowly but surely reversing their recent rate cuts in response to rising swap rates. Prospective borrowers may be left bewildered by a rising market once more, as many expected even lower rates. In a fleeting market such as this, it's wise to act promptly and secure a rate first to ensure you acquire your dream home, rather than trying to play the market and risk everything."
- In contrast to some lenders, Nationwide offers competitive mortgage rates for property buyers and those looking to remortgage, with a 2-year fixed rate starting at 3.9%.
- For individuals shopping for real-estate investments or personal finance solutions, investing in property or securing a mortgage might be a smart move due to Nationwide's lowered mortgage rates, especially for those with a 40% deposit.
- In the world of finance and personal-finance, shifts in market trends can lead to changing mortgage rates. Recently, three major lenders have increased their fixed rates due to fewer expected Bank of England interest rate cuts and rising Sonia swap rates, putting pressure on mortgage borrowers.
