Copy article

Nationwide goes sub-4% "to the delight of borrowers around the UK"

ended 23. July 2024

Nationwide has today announced sub-4% mortgages starting tomorrow. Newspage asked brokers if this a symbolic moment for borrowers and the broader mortgage and property market? This time, could sub-4% fixed rates be here to stay? Their views are below.

8 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Emma Jones
Managing Director at Whenthebanksaysno.co.uk
The sub-4% mortgage is back. Even though it will only be available to borrowers with bigger deposits or more equity, this is a big moment and shows the momentum picking up in the mortgage market. Lenders seem to be pricing in a base rate cut in August or, if not, not long after. If that happens, then we could see rates continue to drop to the delight of borrowers around the UK.
Star Quote
Copy

Editor
Andrew Montlake
Managing Director at Coreco
Today's announcement of five-year fixed mortgage rates dropping below 4% is a significant and positive development for both homeowners looking at remortgaging and prospective buyers alike. This move signals a more favourable borrowing environment and provides a much-needed boost to market confidence and consumer sentiment. For many who have been sitting on their hands before acting in the mortgage market, this could well be the watershed moment that spurs them into action.
Star Quote
Copy

Lee Gathercole
Co-Founder at Rebus Financial Services
It's great to see these headline rates from Nationwide. I think this is a sign of things to come. It's very positive news for first-time buyers and mortgage holders more generally. Hopefully other lenders will follow suit, boosting the confidence of borrowers around the UK.
Copy

Editor
Dariusz Karpowicz
Director at Albion Financial Advice
This is a very welcome move from the Nationwide and a lender of its size dipping below 4% could set a trend for other major lenders to follow. This is fantastic news for borrowers, signalling potentially more competitive rates in the near future. Could sub-4% fixed rates be here to stay? Let’s hope so. It’s about time borrowers were given a break.
Copy

Editor
Ben Perks
Managing Director at Orchard Financial Advisers
Lovely to see us crash through the 4% barrier, but let's not get too comfortable. We saw some late-3% rates back in January and then it all went Pete Tong. A base rate cut in August would help us to see more 3s going forward and, let's face it, they're much needed.
Copy

Editor
Rohit Kohli
Director at The Mortgage Stop
This is great news for borrowers with large deposits. Finally, some rates are starting to fall below 4%. Whether this lasts will depend on next week with the Bank of England making a highly anticipated decision on rates. If the MPC continue to hide behind data and not what's happening in the real world then I'm not sure how long these rates will last.
Copy

Graham Cox
Director at Bridging Hub
Nationwide dropping rates below 4% is a sure sign the worst of the mortgage market woes are well and truly behind us. After several months of steadily increasing rates, the last month has seen consistent mortgage rate cuts from all the major lenders. With a base rate cut likely in August or September, we could see a big jump in property transactions in the coming months.
Copy

Rob Gill
Managing Director at Altura Mortgage Finance
Lenders have launched a Summer rate war and this reintroduction of sub 4% rates by Nationwide is the latest salvo. More lenders seem set to follow suit, further boosting a property market already on the rise following the General Election.