“The significant reductions we’re making across a wide range of our mortgages demonstrates our ongoing support for all types of borrowers and, by expanding our range with the launch of new three-year products, we are also giving them even more choice when they come to make that decision on how long to fix that mortgage rate.”
Mark Harris, the chief executive of mortgage broker SPF Private Clients, believes other building societies are likely to follow Nationwide’s lead and launch similar products.
Harris said: “Just when it looked as though mortgage rates couldn’t possibly go any lower, they have.
“While there has been a flurry of sub-one percent two-year fixes in recent weeks, this is the first five-year fix pegged at such a low rate. Borrowers must have a 40 percent deposit or similar level of equity, and pay a £1,499 fee to access the deal.”
He added: “With Nationwide also offering a two-year fix at 0.91 percent, the building society has done the double with the cheapest two- and five-year fixes on the market.”
“As lenders are cash-rich and eager for business, we wouldn’t bet against others following suit and offering similarly cheap products in coming weeks.”