The new eight deal range includes five residential mortgages with a 90% LTV including a two year fixed-rate at 3.44%, a three-year fixed rate at 3.84% and a five year fixed-rate at 4.09%. All have an upfront booking fee of £199 and the three and five year products have an £800 arrangement fee.
The Nottingham has also launched three buy-to-let mortgages at 75% LTV. These include a two year fixed-rate at 3.04%. This has a £299 upfront booking fee and a £1,700 arrangement fee.
Chris Gardner, Deputy Treasurer at The Nottingham, said:
“The recent fall in the Consumer Price Index measure of inflation pushed back money market expectations of when the first bank rate rise will be seen. Subsequently wholesale swap rates, which are used to price fixed rate mortgages, have fallen. This has given us the opportunity to re-price our range of high LTV mortgages, reducing the fixed rates which guarantee the repayments for an agreed period of time; especially important for first time buyers who quite often require budgeting certainty.
Since the recession in 2008 there has been a long period of falling real wages as inflation has outpaced average earnings. Recently there have been more positive signs with CPI inflation falling below average earnings, which are also starting to rise. By cutting the rates on our fixed rate mortgages it will ease the burden on borrowers who have tight budgets.”
