Nationwide cuts mortgage rates, while other lenders are putting them up
Nationwide will be reducing the interest rates on some of its two, three and five-year fixed rate mortgages from tomorrow.
Rates will be cut by up to 0.12 percentage points, meaning the new lowest rate available with Nationwide will fall to 3.9 per cent.
Reductions will be made for both buyers and those remortgaging to the building society.
Those buying a property with at least a 40 per cent deposit will now be able to secure a two-year fixed rate at 3.9 per cent with a £1,499 fee.
On a £200,000 mortgage being repaid over 25 years that would equate to £1,052 a month, with the fee added to the loan.
For those buying with a smaller deposit the rates are only marginally higher.
The cheapest two-year fixed rate for someone buying with a 25 per cent deposit is 4.04 per cent with a £999 fee, while the cheapest five-year fixed rate for someone buying with a 15 per cent deposit is 4.29 per cent with a £999 fee.
The lowest remortgage rates start from 3.92 per cent for those prepared to fix for two years.
Why are some lenders increasing mortgage rates?
Nationwide's cuts go slightly against the grain at the moment.
Three major lenders have increased their fixed rates in the past 24 hours, because financial markets are predicting fewer Bank of England interest rate cuts over the rest of 2025.
Halifax, Accord and Santander have all pushed up rates, with the latter increasing rates by up to 0.13 percentage points on a number of its products.
Fixed-rate mortgage pricing is largely based on Sonia swap rates - the inter-bank lending rate, based on future interest rate expectations.
When Sonia swaps rise sufficiently it often results in fixed mortgage rates going up, and vice versa when they fall.
Over the past month, five-year and two-year Sonia swaps have risen just over 0.2 percentage points which represents a sizeable shift in the wrong direction for mortgage borrowers.
Andrew Montlake, chief executive at broker Coreco told the news agency, Newspage: 'Lenders are slowly but surely reversing their recent rate cuts in response to rising swap rates.
'Prospective borrowers may be left bemused by a rising market once more, as many were waiting on the expectation of even lower rates.
'In a capricious market such as this, it pays to act quickly and lock into a rate first to ensure you get the home of your dreams rather than trying to play the market and risk everything.'
Best mortgage rates and how to find them
Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs.
That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord.
Quick mortgage finder links with This is Money's partner L&C
> Mortgage rates calculator
> Find the right mortgage for you
To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C.
This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit.
You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes.
If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
26 minutes ago
- Daily Mail
Banking group urges customers with £10,000 in savings to move their money NOW
Customers with £10,000 in savings are being urged to move their money or risk missing out on earning hundreds of pounds a year. In the UK 8.3 million current accounts hold £10,000 or more but 80 per cent of these accounts pay no interest - meaning their money sits passively. However, Spring, a savings app, has encouraged those looking to earn money through interest to move it into a savings account instead. The company warned millions of people in the UK are 'current account coasters' - leaving their money in a main account after paying for essentials, rather than placing it in savings. Derek Sprawling, Spring's Managing Director of Savings, told The Express: 'Cumulatively, nearly £400 billion is held in current account balances in the UK. 'You would imagine that these would mainly consist of small balances, but our analysis shows that there are a significant number of accounts that contain sizeable funds, accounting for over half of the overall balance. 'Most people sensibly maintain a small current account balance to cover emergency costs and everyday expenses, but leaving thousands of pounds in your current account means you will be missing out on hundreds of pounds in interest each year. 'With nearly eight million current accounts containing significant balances, that money could work harder in a higher-paying savings account.' File image: In the UK 8.3 million current accounts hold £10,000 or more but 80 per cent of these accounts pay no interest - meaning their money sits passively He explained that many people are wary about using savings accounts because they can loose immediate access to their money. But there are alternatives, which connect savings and current accounts together. These allow money to be transferred between accounts immediately. As well as unlimited withdrawals.
BBC News
41 minutes ago
- BBC News
Developer partner sought for listed building in Huddersfield
A Grade II* listed building could be transferred to a housing developer after original plans to transform the site Council had earmarked Estate Buildings, near the George Hotel and railway station in Huddersfield, for cash of £1.25m was secured for enabling works and the council had entered into an agreement with Thirteen Group to deliver social housing at the the housing provider has since withdrawn from the scheme due to risk within the sector, leaving the council looking for alternatives. The council has acknowledged that it would be "very challenging" and expensive for a developer to convert the building but hoped to reduce costs and make it a "more attractive" opportunity through government Buildings dates back to the late 1800s and was designed by Huddersfield architect W.H entrance hall, staircase and first-floor waiting rooms feature wall panelling, decorative stained glass and intricately carved fireplaces. The council said many of the features would be retained through any agreement with the Thirteen Group would have also involved developing Somerset Buildings on Byram Street and, once completed, the group could have purchased the building at market council now wants to appoint a development partner who would enter into a building lease with the council and take on the freehold for Estate Buildings once construction was complete. Grant repaid The move would generate additional council tax of up to £95,000 per year and some savings by reducing the costs associated with holding the building, according to the Local Democracy Reporting 2023-24, the council spent £29,000 on gas, electric, intruder and fire alarms and rodent controls at Estate Buildings.A decision on whether to proceed with the new approach will be made by the council's cabinet on the council is not in a contract to deliver homes by 31 March 2028, some or all of the £1.25m government grant would have to be repaid. Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
Telegraph
an hour ago
- Telegraph
British holidaymakers to miss out on compensation after EU rule change
Britons will miss out on compensation for delayed flights after Brussels adopted a rule change following complaints from airlines. Payouts that were previously triggered by delays exceeding three hours will now only be made after four hours of holdups, European transport ministers agreed. The new regulation, hammered out following a decade of discussions and bargaining over passenger compensation, will apply to all services from EU countries to the UK. For the time being, travellers headed from Britain to the Continent will still qualify for a refund when flight delays hit the three-hour mark, unless they are flying with an EU-registered airline. While raising the compensation threshold, ministers also agreed to increase the minimum level of payment from €250 (£210) to €300 for shorter journeys and to €500 for those above 3,500km (2,175 miles). The original regulation, known as EU261, was passed in 2004 with the aim of ensuring that passengers received money and assistance in the event of flights being cancelled at short notice. Following Brexit, the UK adopted it into law so that the rights of travellers remained unchanged. However, the Government will now have to decide whether to adopt the amendments for outbound flights or stick with the original version. Taking no action might be welcomed by consumer groups but would have consequences for UK airlines, which would be at a disadvantage to their European rivals. It could also affect fares, with Ryanair having claimed that EU261 costs passengers £7 per ticket. Airlines for Europe, an industry group, had pressed for a higher compensation threshold, arguing that extending it to five hours – as originally proposed by the European Commission – would allow 70pc of flights that are cancelled to be rescued. It argued said that airlines inevitably scrapped flights once compensation was triggered, especially since the payouts involved were often higher than the ticket prices charged. It said a five-hour threshold would have made it more practical for carriers to fly in replacement aircraft so that more flights would get away, potentially benefiting 10m passengers a year. A spokesman said: 'Getting to their destination is the primary concern of passengers, even if it means getting to bed or arriving at their holiday resort late. But with a low cancellation threshold it makes more sense to call off the flight and take that hit.' Airlines have also railed against the fact that the compensation applies whether delays are caused by a crew shortage or technical issue that might be laid at their door, or by severe weather or air traffic control issues beyond their control. A number of extraordinary circumstances are expected to be added as part of revisions to 31 different air passenger rights. The revisions must still clear the European Parliament but are expected to become law in the bloc by the end of the year. The Department for Transport said the UK did not have to amend its legislation in line with any changes from the EU, and that any potential future reforms would require careful consideration on their merits, and be subject to public consultation.
