Nationwide has announced a string of cuts to its fixed-rate range just one day after analysts warned of yet another mortgage price war.
London estate agent Portico.com predicted yesterday that the cost of fixed rate mortgages is set to plummet as lenders rush to meet 2015 lending targets, triggering a “race to the bottom”.
And now Nationwide has unveiled reductions to that it is selected fixed rate mortgages across its range by up to 0.45%.
It has also launched new longer-term mortgage deals including five and 10-year products
Selected two and three-year fixed rates have also been reduced and the society is also offering £500 cashback for all first-time buyers.
The reductions are available from today.
They include a two-year fixed rate charging 2.79% and a five-year fix charging 3.54%, both to 90% LTV and with a £999 fee.
Competition in the higher-LTV market has intensified with three lenders launching competitive deals yesterday
Nationwide has also cut its three-year fix to 70% LTV with rates starting at 2.14%, and 2.54% for a five-year fix, both with a £999 fee.
It has also cut rates on its 10-year fixes by up to 0.45%, with rates available from 3.14% with a £999 fee for customers with a 30% deposit and 3.64% with a £999 fee for customers with a 15% deposit.
The new deals complement the society’s new range of competitive fixed rate 95% LTV mortgage deals, starting at under 4%.
The products are not part of any scheme, such as Help to Buy, and are available to both first-time buyers and home movers, both through brokers as well as direct through Nationwide.
Henry Jordan, Nationwide’s head of mortgages, said: “First time buyers will also continue to qualify for a £500 cashback irrespective of which product they choose.
“This is in addition to the benefits available on the Flexclusive range of mortgages, including a free standard valuation and the option of either £250 cashback or no standard legal fees.”