Nationwide has unveiled a market-leading 10-year fixed-rate loan at 2.79 per cent for existing customers or 2.89 per cent for new borrowers at 60 per cent loan-to-value.
The product, available for a £999 fee, is among a range of fixed-rate mortgages which have been discounted by the lender.
Reduced fixed rates of 2.34 per cent and 1.99 per cent are applicable to five-year and three-year loans respectively.
Both offerings come with a £999 product fee and free standard valuation plus the choice of either free standard legal fees or £250 cashback for remortgage borrowers.
In addition, the lender’s ‘Flexclusive’ four-year fixed rate at up to 60 per cent LTV has been cut to 2.14 per cent – a deal only available to Nationwide main current account holders.
At 90 per cent LTV, its two-year fixed rate has been reduced to 3.39 per cent – also with a £999 product fee.
In addition, a new fixed rate of 3.99 per cent is now available on two-year ‘Save to Buy’ loans for borrowers with only a 5 per cent deposit.
A rate discount of 0.10 per cent for existing mortgage borrowers is applied to all new loan deals. Remortgage customers benefit from free standard valuation and the choice between free standard legal work or £250 cashback. First-time buyers pay a reduced fee of £499.
Provider view
Richard Napier, director of mortgages and savings at Nationwide, said: “This new range of fixed-rate mortgage deals ensures Nationwide remains competitive, including for those with smaller deposits. They are designed to appeal to both first-time buyers and those looking to remortgage, offering certainty of mortgage payments while interest rates remain at a historic low.”
He added: “Across a wide range of requirements, we are helping mortgage customers to access great value deals to match their particular needs.”
Adviser view
Daniel Bailey, owner of Sheffield-based mortgage broker Middleton Finance, said: “The 10-year rates are extremely competitive. More lenders are releasing 10-year fixed loans but I am unsure whether or not there is an appetite for these deals. I think the product may work for older people who only have 10 years left to pay off their mortgage and would prefer to do it all in one go. I am not sure whether first-time buyers would want to lock themselves into a loan for as long as 10 years. They might wish to go elsewhere within the time period.
He added: “Any fee discount which would help first-time buyers get onto the property ladder is a good thing.”
Charges
All new loan deals come with a £999 product fee for new customers and £499 for existing customers.
Verdict
Just when you think the mortgage marketplace could not get any more competitive, Nationwide launches a market leading rate for customers with a 40 per cent deposit. With a rise in interest rates due in the near future – though probably later than when many industry experts originally predicted – the lender might be able to coax people into buying their longer-term loan.
As competition within the marketplace continues, it is only a matter of time until we see a reduction in rates for long-term mortgages for people with lower deposits.
The competitive cuts to a wide range of products for people with high and low deposits is a true statement of intent by the lender.
