First-time buyers have been offered a huge boost after Nationwide announced that it would be slashing mortgage rates from this week.
The bank is set to lower rates across all of their mortgage schemes but first time buyers will see the greatest benefit.
Rates across its fixed and tracker mortgages will be cut by as much as 0.7 per cent.
Its two, three and five-year fixed mortgages and two-year trackers will have the largest reductions.
Rates across its fixed and tracker mortgages will be cut by as much as 0.7 per cent.
Joe Giddens
A five-year fixed rate mortgage with a five per cent deposit and no fee will be made available 0.7 per cent lower than previously, at 5.09 per cent.
A five-year fixed rate mortgage with a £999 fee will be available for 0.6 per cent lower at 4.99 per cent.
People looking to use remortgaging products and have deposits of 10 per cent minimum are in luck as these are also being cut by as much as 0.19 per cent across two, three and five-year fixed rates, and two-year trackers.
Anyone wanting to remortgage their home and have a 40 per cent deposit can get on a five-year fix mortgage which is being reduced to 3.99 per cent with a £999 fee.
The only bank that can beat this is Virgin Money who have announced a five-year fix at 3.95 per cent.
Nationwide said: "This continues the Society’s existing mortgage member pricing pledge meaning Nationwide’s switcher products will be the same or lower than remortgage equivalents."
Henry Jordan, Director of Mortgages at Nationwide Building Society, said: “We’re making these latest rate reductions to ensure the Society remains front of mind for all borrowers, especially those where rate is a key consideration.
“So, whether it’s a first-time buyer, someone purchasing their next home or those looking to remortgage once their current deal comes to end, Nationwide’s mortgage range has competitive rates across all loan-to-values.
Nationwide said the move was made to ensure it remains at the "front of mind for all borrowers".
Yui Mok
“We are also maintaining our existing mortgage member pricing pledge meaning our switcher products will be the same or lower than remortgage equivalents.”
Despite this, first-time buyers may struggle to save as rising energy bills and rent threatens to eat into their savings, or prevent them from saving in the first place.
The average monthly rent being asked of new tenants across Britain, excluding London, hit a record £1,172 per month last month.
Rightmove said the typical private rent being asked within London also hit a record high of £2,480 a month.
