The announcement by Nationwide yesterday that they are to offer their lowest ever fixed rate mortgage at 1.74% is reflective of the fact that the mortgage market is currently very competitive. Ahead of a potential interest rate rise – expected in early-to-mid 2015 – mortgage vendors have been producing a range of incentives for consumers; from first time buyers to those looking at a remortgage.
Nationwide’s launch takes into account both of those groups, with special rates for first time buyers and current Nationwide customers. The mortgages offered by Nationwide are the latest in a line of mortgage offers and promotions over the last few months designed to attract those entering the newly resurgent housing market and consumers investigating a remortgage.
In a competitive market, impartial advice is vital. With greater choice and flexibility comes a greater chance to save, but also a greater chance to select the ‘wrong’ deal. Even an error of just a few percentage points could lead to your mortgage costing much more than it needs to.
The Nationwide mortgage offer, for example, is only offered at 1.74% if you are an existing Nationwide customer, with new clients offered a rate of 1.84%. For those looking to fix for the longer term, a five year deal is also available but only up to 60% Loan To Value (LTV) and at a rate of 2.84% (2.74% for existing customers).
Selecting the right deal for you from the above offers could therefore become very difficult: do you want to fix for the longer or shorter period? How much extra or less would each decision cost you? Are you a Nationwide client or not? Have you considered similar deals from other mortgage lenders? Making the right decision at this point can get you a great deal on your new mortgage, but the wrong one could see you miss out on that very opportunity at a time when, as Nationwide say, rates have rarely been better.
For that reason, and particularly in such a competitive mortgage market, we would strongly advise anyone currently considering a mortgage product to seek advice from their mortgage adviser or broker. There are currently some great rates available: make sure you get the best one possible!
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Your property may be repossessed if you do not keep up repayments on your mortgage.