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The cheapest five-year fixed rate mortgage on record has been launched nationwide.

The cheapest five-year fixed rate mortgage on record has been launched nationwide.

The 0.99% rate shows fierce rivalry among lenders in the burgeoning UK real estate industry.

The building society's offer is the first five-year fixed-rate agreement in history to charge borrowers an interest rate of less than 1% during the fixed-rate period. The mortgage will be accessible to people with a deposit of at least 40% starting on Wednesday, with a £1,499 charge.

In recent weeks, a handful of lenders have provided sub-1% rates on two-year fixes, but historically, the spread between these rates and longer-term fixes has been wider. These rates have decreased and narrowed as competition has increased following the post-lockdown reopening of the housing market.

Nationwide's latest two-year fix, at a market-beating 0.91 percent with a charge of £1,499 and a maximum mortgage-to-value ratio of 60%, is also topping the "best buy" lists.

Lenders have access to funding at such cheap costs, according to Aaron Strutt, product director at mortgage broker Trinity Financial, that they were still able to give record low rates while still making money.

Nationwide has “ramped up the mortgage rate war” with its record five-year rate, which is available for people looking to borrow between £275,000 and £1 million, according to Moneyfacts, a financial website that has been tracking rates since 2007.

Despite the gradual termination of a stamp duty holiday on purchases in England and Northern Ireland from June 30, activity in the housing market has remained high.

Drop a mail to andy@harveybowes.com to get a quote for your home loan or check out the facebook pages of UK Smart Property, and Andy Coghlan Harvey Bowes.

#finance #uksmartproperty #AndyCoghlanHarveyBowes #debt #mortgage #mortgagebroker #debt #smartfinance #property #harveybowes #economy #housing #realestate


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