Nationwide Introduces Marketís Lowest 10-Year Fix
Nationwide has introduced the lowest 10-year fixed rate mortgage available on the market, in a bid to undercut Barclays. The decision to rejuvenate their 10-year fix has come after, earlier this month, Barclays launched a 2.99% deal which, at the time, was the cheapest price ever seen for those customers who committed to a decade.
From 21 January, Nationwide are offering a 2.94% rate for new mortgage customers on a 10-year contract and 2.84% for existing mortgage customers. The deals are offered at a rate of up to 60% loan to value, whilst the product will carry a £999 charged- reduced to £499 for those first-time buyers.
Furthermore, remortgage borrowers are to be given a free standard valuation and the choice of either free standard legal services or £250 cash back.
Richard Napier who is the director of mortgages and savings at Nationwide stated: ìThere 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.î
The evidence seems to corroborate this view, with borrowers attracted to a long-term deal due to the fact that the anticipated Bank Rate rise has been quashed, at least for the moment.
Furthermore, Nationwide has reduced its prices on a series of products with 5-year fixed contracts cut by up to 0.4%, with rates opening at 2.44%, and applied a similar method to a wide range of 2 and 3-year fixed deals. The 2 year-fixed rates for new mortgage customers begin at 1.74%, whilst both the 3 and 4 year fixed deals from the Flexclusive range, only available to customers on Nationwideís main current account, both start on a competitive 2.24%.
Additionally, the entirety of Nationwideís 95% LTV ìsave to buyî fixed rates have been significantly cut by up to 35% and prospective buyers are offered rates starting at 4.44% along with a deposit of 5%.
As part of the ìsave to buyî proposal, one can open a savings account with a minimum of £50 and customers can save, at minimum, £50 per month for six months or more. If the customer of this scheme progresses to get a ìsave to buyî mortgage with Nationwide, relative to how much they have saved, there is a cashback reward that goes up to £1000.
Mr Napier went on to say: ìThis competitive range of new fixed rate mortgage deals is likely to appeal to both first time buyers and those looking to remortgage by ensuring longer term security of mortgage payments.î
The attractiveness of these deals is indisputable, but there are still warnings to be heeded for those looking to commit to a decade long deal.
David Hollingworth, a representative for London and Country mortgage brokers, argued that many people were still resistant to it because of the risk that they may have to pay early repayment expenses or decide to move residence and find it impossible to ìportî their mortgage deal to their newly acquired property.
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