Mortgage rates are below 4% in Nationwide, but rising in Santander.
Britain’s largest building society has cut its minimum mortgage rate to an eight-month low, well below the Bank of England’s benchmark rate.
Starting Wednesday, Nationwide will offer new refinance customers an interest rate of 3.84% on a five-year fixed agreement.
Existing mortgage holders can get lower interest rates on top-up loans, transfer agreements and even five-year offers.
For new members and first-time buyers, the five-year fixed rate is a little higher at 3.85%.
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Not only is it less than the Bank of England; Basic interest rate 5.25%Such offers are also below the current average five-year mortgage rate, which was 5.2% as of Tuesday, according to financial information firm Money Facts.
Nationwide Building Society home director Henry Jordan said: “These latest changes mean we are offering rates below 4% for the first time in eight months.”
But another lender, Santander, is raising interest rates on some mortgage products.
It said many standard home fixed rates would rise by up to 0.2% for purchase and mortgage customers.
A Santander spokesperson said: “Santander continually reviews interest rates based on a number of factors, including wider market conditions, including swap rates.”
“We offer a wide range of competitive mortgage deals, including five-year deals from 3.99% and two-year deals from 4.25%.”
home loan interest rate is In the rising summer up 6% for typical fixed transactions but fell Over the past four months, falling inflation has caused markets to readjust their expectations for when the Bank will cut its benchmark interest rate.
Base interest rates and market expectations both influence the mortgage products offered to consumers.
Bank of England raised interest rates 14 consecutive times In an effort to tame Price increases at double-digit pace Seen after the energy crisis when Russia invaded Ukraine.
Banks and building societies will base their interest rates on a variety of factors, including how much a particular offer is taken up and whether it is a time when a mortgage holder is looking to switch or a potential new buyer. It may be subject to change.