Mortgage rates drop below 4% with new Nationwide deal

Fixed mortgage rates have fallen below 4 per cent for the first time since mid-February as a price war between banks hots up. Nationwide Building Society has released a 3.99 per cent five-year fixed rate for homebuyers, as it cuts fixed deals by up to 0.25 percentage points.

It follows other major lenders including Barclays, Halifax, HSBC, NatWest, Santander and Virgin Money which have all cut mortgage rates over the last fortnight. The moves have been spurred by competition for business in a quiet market and hopes interest rates will soon fall.

“Banks have been gradually lowering their rates for a while and as a result of these pretty regular changes rates are much better value for money than they were,” said Aaron Strutt from