by Mark Johnston
Lowest Ever Fixed Rates Launched by Nationwide.
In the wake of measures that have already been introduced to boost the housing market and recent measures that have been unveiled by the government in the current budget, it seems that mortgage rates are about to drop again ‘significantly’ over the next 3 months or so.
Some lenders have recently indicated that they intend to increase the number of mortgages they make available throughout 2013.
The availability of loans to fund home purchases has already risen over the past 9 months and many mortgage deals have become markedly cheaper.
According to current data fixed mortgage rates have fallen to their lowest level since the product was devised back in 1989.
Recent analysis of fixed mortgage rates has shown that the best 5 year fixes can now be found below 3 per cent, while 2 year fixes can be had at rates below 2 per cent.
Therefore it should come as no surprise that Nationwide building society is the latest lender to cut its fixed rate mortgages.
Nationwide building society has recently announced that it has decided to reduce all of its rates at both 60 per cent and 70 per cent loan to value (LTV) levels by 0.10 percentage points.
The lender has reduced the rates on its fixed rate mortgages by 0.1 per cent.
Among the new rates is a 2 year fixed rate mortgage for those with either a deposit or equity of 40 per cent.
For first time buyers the rate is 2.24 per cent on up to 60 per cent loan to value (LTV) and comes with a fee of just £400.
Customers who already have a mortgage with the building society and are looking to fix, interest rates are charged at 2.14 per cent and come with a fee of £900.
Jonathan Harris, director of mortgage broker Anderson Harris, said of the Nationwide’s new fixed rates “its 2 year fix at 2.24 per cent is up at the top of the best buy tables, plus it features a realistic fee and even better, with a £500 discount on the fee to cash strapped first time buyers”.
Nationwide’s new 3 year fixed rate mortgage for those with a deposit of 40 per cent or more follows a similar format to the 2 year fix. New borrowers are charged 2.49 per cent, existing borrowers are charged a rate of 2.39 per cent and there is also a two tier arrangement fee.
The rate on the building society’s 5 year fix on up to 60 per cent loan to value (LTV) has been cut from 2.99 per cent to 2.89 per cent or 2.79 per cent for existing borrowers.
Tracie Pearce, head of mortgages at Nationwide, says “I am pleased to announce that we have reduced rates on all fixed rates. These latest reductions mean Nationwide is now offering the lowest fixed rates in the society’s history”.
So it appears that existing home owners and first time buyers alike look set to benefit from the building society’s lowest ever two, three and five year fixed rate mortgages.
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