Mortgage rates cut for buyers with small deposits – London Wallet

Major lenders have introduced further mortgage rate cuts across fixed deals.

Nationwide Building Society, NatWest and TSB have all lowered their mortgage products, including high loan-to-value (LTV) home loans aimed at buyers with low deposits.

The latest announcements follows fresh in the wake of Barclays and TSB who cut mortgage rates earlier this week, including on 5% deposit deals.

From today, the lender is offering the lowest rate on the market for first-time buyers and home movers purchasing with a 5% deposit.

Its five-year fixed deal will charge 5.04% with a £999 fee. On a £200,000 mortgage being repaid over 25 years, that equates to £1,174 a month.

Henry Jordan, director of home at Nationwide Building Society, said: “These latest reductions will ensure that we have some of the most competitive rates on the market with a particular focus on supporting first-time buyers in what remains a challenging environment.”

In another welcome change for those with smaller deposits, NatWest has also announced fixed rate cuts of up to 0.19% across selected 90% and 95% LTV products.

TSB has also reduced rates, albeit not in the high loan-to-value brackets with rates changing on deals that require a deposit of at least 15%.

Also from today, TSB has reduced rates by up to 0.35% with first-time buyers, home movers and remortgaging customers set to benefit.

TSB’s rates now start from 3.79%, which is only marginally higher than the market currently offered by NatWest at 3.77%.