Nottingham BS 

The Nottingham cuts mortgage rates

The Nottingham cuts mortgage rates

The Nottingham for Intermediaries has cut its fixed rate mortgages for purchase and remortgage by up to 0.2 per cent.

The lender launched a two-year fixed rate mortgage at 1.52 per cent, available up to 80 per cent loan (LTV) with a £999 fee. The product is also offered without fee at 1.84 per cent.

The Nottingham also launched four five-year products at varying rates.

At 75 per cent LTV the five-year fix comes at 1.95 per cent with a £800 fee, or 2.1 per cent without fee.

The higher LTV versions, which are available up to 80 per cent LTV, come at 2 per cent with a £999 fee or 2.2 per cent without fee.

David Hollingworth, associate director of communications at L&C Mortgages, said: "It’s a very competitive market at the moment and these rates are a good example of how it’s certainly not just the biggest lenders that are contributing to the great rates on offer.  

"These changes from Nottingham are keenly priced and they’ve not neglected overall value for rate either with a choice of deals with no fee to complement the lower rates with arrangement fees.  

"There’s a good selection of five-year fixed rates which is a key sector of the market and these products are clearly designed to be leading deals in their LTV bracket."

Earlier this week The Nottingham became the latest lender to launch a retirement interest only mortgage.

It added three RIOs to its range, including a seven-year fixed at 3.85 per cent, three-year fixed at 3.34 per cent and a two-year discounted at 2.99 per cent. 

Nikki Warren-Dean, head of intermediary sales for The Nottingham for Intermediaries, said: "These table-topping products, twinned with the addition of RIO mortgages to our portfolio earlier this week, demonstrate our commitment to ensuring we have a wide range of products with competitive rates.

"As with all The Nottingham for Intermediaries products, this range is provided exclusively via our broker network and with some of the highest customer satisfaction scores in the industry, brokers can be confident their clients will be getting great service with our products."

RIOs have started to gain popularity this year with building societies taking the lead.

March will mark the first-year anniversary of the regulator's reclassification of RIOs as standard mortgages and so far 38 RIO mortgages have been launched by 12 providers, only one of which is not a building society, according to data from Moneyfacts.

carmen.reichman@ft.com