Lenders cut mortgage rates to record lows

22nd October 2014

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Nationwide Building Society will tomorrow launch its lowest ever two-year fixed rate mortgage at 1.74% for existing home loan customers and 1.74% for new borrowers.

The deal requires a 40% deposit and comes with a £999 fee reduced to £499 for first-time buyers. It follows the launch of a two-year discounted rate of 0.99% by HSBC earlier this week, which is the first time the lender has offered a rate below 1%

HSBC’s deal has a £1,999 fee and requires a 40% deposit.

Norwich & Peterborough Building Society has launched a five-year fixed rate mortgage at 2.94% with a £1,295 fee.

The rate is available to borrowers with a 25% deposit and is 0.2% lower than its previous five-year deal at this loan-to-value.

Norwich & Peterborough is part of Yorkshire Building Society, which also owns broker-only brand Accord.  The latest rate from N&P is not quite as good as the cheapest deal on offer through Accord.

Aaron Strutt of Trinity Financial, the mortgage broker, said: “Lots of the lenders are lowering their rates at the moment and there is a huge amount of competition to attract borrowers. The banks and building societies are regularly improving their five-year fixes in particular.

“Norwich and Peterborough’s rates are not quite good enough to top the best buy tables although they are very good. Accord Mortgages is offering the lowest five-year at 2.59% and it has a £975 arrangement fee, borrowers will need a 35% deposit to qualify. ”

 

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