Nationwide Brings Back Sub-4% Home Loans
It’s no secret that it has been a rollercoaster for house buyers over this past year. However, we’re pleased to see that well established and reputable lenders are finding ways to make buying a new home more affordable. With the cost-of-living measure now at the 2% target, lenders appear to be more confident, especially if the Bank of England cuts interest rates in the coming months. It’s widely anticipated that the other established lenders will quickly follow suit, so they stay ahead of the game.
It could be a busy few months!
Nationwide are the first lender to offer rates sub-4% for its five-year fixed deals.
The lender will cut prices by up to 25 basis points across its fixed-rate products, with its lowest rate starting at 3.99% for those with a 40% deposit.
With the average price of a new build property in the UK currently around £394,000, according to Land Registry data, this follows another recent announcement, in which NatWest revealed changes to its lending policy, which could cut average new build deposits by around £20,000.
It has done this by increasing the amounts that residential mortgage borrowers can apply for on a new build property, meaning that borrowers will require less of an up-front deposit when seeking to make a purchase.
Its new maximum loan-to-value rates for new build properties are:
Chris Kelly, Sales Director at Stonebridge Homes, said: “Here at Stonebridge we’re always looking for ways to help buying a home more affordable for our customers. Whether that be through offers and incentives, or schemes such as Own New, which is a new mortgage scheme helping people buy new build homes with reduces mortgage rates and smaller deposits. It’s great to see mortgage lenders changing their lending policies to make buying a new build home easier.”