A war between mortgage lenders to gain new customers is driving down lending rates and supporting house prices as more banks enter the market with offers below 1%.
The Main Street Mainstay Nationwide has become the latest lender to cut rates after yesterday launching its lowest ever mortgage deal for new customers.
Britain’s largest mortgage lender has said it will offer new borrowers with a 40 percent deposit a rate of 0.87 percent.
The move comes after the UK property market recorded a surprising rebound in August, with average house prices rising by almost £ 5,000 to £ 248,857 in the space of a month.
Mark Harris, managing director of mortgage broker SPF Private Clients, said: “Real estate prices are rising due to lack of stock, while cheap loan rates give borrowers the confidence to seek out home ownership. their dreams in the space race.
Along with Nationwide’s lower interest rates, Barclays also lowered the cost of some of its borrowing rates, including lowering the rate on a two-year mortgage to 0.85%. As with the Nationwide Agreement, borrowers will need a 40 percent deposit.
Henry Jordan, Nationwide Mortgage Director, said: “As one of the UK’s largest lenders, we always keep our rates under review to ensure we can maintain our competitive position on the market. Marlet.
A number of major lenders have already unveiled deals below 1%, with HSBC lowering the rate to 0.99% on its two-year fixed product for those with 40% deposits or equity.
Platform, the lending arm of the Co-operative Bank, cut the rate on its deposit product from 40 percent to 0.95 percent.