Nationwide launches 5-year fixed rate at 3.78%: "These are rates we haven't seen for at least two years"

It's incredible to see rates at 3.78%. Many thought we may not see this until 2025, but they have been proven wrong. This is a huge boost for homeowners and home movers alike. These rate reductions are sprinkling some serious stardust onto the housing market.

These are significant headline-grabbing rates from Nationwide. Most of all, these are rates we haven't seen for at least two years. They will give borrowers plenty of confidence to get back into the property market. Lenders of all shapes and sizes help deliver good news and positivity, with both Nationwide and MPowered delivering by the bucket load.

The recent mortgage rate cuts by Nationwide signal a pivotal shift in the UK mortgage market, driven by broader economic trends as the Bank of England hints at further interest rate cuts to manage inflation. The reintroduction of sub-4% fixed-rate mortgages will begin to offer financial relief as many transition from historically low rates. These reductions should help to drive increased affordability and market activity in the housing sector, with the potential for further reductions leading to more competitive mortgage offerings across the board. However, the prevalence of mortgage rate reductions across the wider sector hinges on continued economic stability and the Bank of England's future monetary policy.

This move from Nationwide marks a new low point in the 5-Year Fixed Rate battle and shows that the mortgage rate war is now in full flow as lenders look to end the year on a high. Products such as these will help convince prospective borrowers who have sat on their hands for a while to plunge into the housing market before it becomes too hot and prices inevitably begin to strengthen once more, especially in high-demand areas. The game is on, especially with smaller lenders such as MPowered also shaving their rates.

Lenders large and small are really competing for market share at the moment. This 5-year fixed rate is throwing the gauntlet down to the competition and is setting the property market up for a very busy end to 2024.

Summer just got a whole lot hotter as Nationwide race to the top of the list by offering the lowest 5-year fixed rate on the market. This really stirs up the competition. Great news for those moving home. The question now is, how long will they stay there?

Great to see lenders still cutting rates and injecting further confidence into the housing market. Its also great to see some love for existing customers as the rates are reducing across the board. The 3-year fixed market is underserviced by mortgage lenders so it's good to see a lender taking this option seriously and offering competitive rates.

This is great to see, and long may the current trend of daily notifications from lenders reducing rates continue!

That being said, it's important for us as brokers to keep on top of deals we already have locked in for clients. Whether they are remortgaging or buying a new property, there's potential opportunities to lock in lower rates for them before completion which is always welcome.

With these rates, this 5-year fixed is one of the lowest on the market and, with it, Nationwide takes the price war head-on and is challenging other leaders to match them.

The race to the bottom of the 5-year fixed is well and truly on. Nationwide have taken over the baton for now, ensuring broker business rather than NatWest closing out to direct only. Who will be next? We may just get to 3.5% in the next few weeks.

Nationwide proves again they have their finger on the pulse of consumer needs, balanced with business ambition, leaving the big banks to follow behind. Good news for borrowers and a sure fire way to get buyers buzzing again.

Nationwide is setting the stage for what’s around the corner after the holidays, and other lenders are bound to follow, which could make for a whirlwind fourth quarter in the property market. It’s great to see some healthy competition among lenders in the two- and three-year fixed-rate sectors.