Nationwide is set to launch the “lowest” 10-year fixed-rate mortgage currently on the market, after it refreshed its 10-year fixed range last week.
From tomorrow (21 January), Nationwide is offering a new 10-year fixed with a 2.94 per cent rate for new mortgage customers an 2.84 per cent for existing mortgage customers.
The deals are available up to 60 per cent loan to value, and comes with a £999 product fee, reduced to £499 for first-time buyers.
Remortgage customers benefit from free standard valuation and the choice between free standard legal work or £250 cashback.
Last week, Nationwide reduced selected 10-year fixed rates for existing mortgage customers seeking a new deal.
According to data from Moneyfacts, there are now 77 mortgages on the market with a rate fixed for a decade, compared to just eight in January 2014. The number of 10-year deals has spiked particularly in the last few months, with 22 offers in October alone.
Richard Napier, Nationwide’s director of mortgages and savings, said: “There has been a growing trend of customers opting for longer term fixed rates to ensure certainty of monthly mortgage payment, particularly ahead of any rise in interest rates, with the recently-introduced 10 year fixed rate mortgages proving a popular addition to the range.”
As part of a broad range of reductions, it has also cut rates by up to 0.4 per cent on its five-year fixed rates, and two and three-year fixed deals.
Furthermore, from tomorrow, all of Nationwide’s 95 per cent LTV ‘save to buy’ fixed rates have been reduced by up to 0.35 per cent, with rates starting at 4.44 per cent for prospective buyers with a five per cent deposit.
With Nationwide’s ‘save to buy’ initiative, savings accounts can be opened with a minimum of £50, with customers saving at least £50 per month for six months or more.
If the customer goes on to take a ‘save to buy’ mortgage, depending on how much they save, there is also a cashback reward of up to £1,000.
donia.o’loughlin@ft.com
