Lenders launching new sub-0.90% mortgage deals from Friday

Mortgage lenders will launch new deals with rates below 0.90% from Friday.

Among the products, Nationwide Building Society is launching its lowest ever mortgage rate for new lending as the battle to attract borrowers continues.

Britain’s biggest building society is offering a deal at 0.87% from Friday.

The two-year fixed-rate product has a £1,499 fee and borrowers will need a 40% deposit.

Depending on individual circumstances, some may find they are better off going for a higher rate with a lower fee.

The society is also making some rate reductions on first-time buyer deals.

Henry Jordan, Nationwide’s director of mortgages, said: “As one of the largest lenders in the UK we always keep our rates under review to ensure we can maintain our competitive position in the market.”

Barclays also announced changes from Friday, including a two-year tracker mortgage at 0.85% with a £999 fee. As with the Nationwide deal, borrowers will need a 40% deposit.

Other Barclays deals include a 1.40% two-year tracker, with no fee for people with a 40% deposit.

Borrowers with a 15% deposit can take out a zero-fee two-year fixed-rate at 1.95%.

A five-year fixed-rate Barclays mortgage is also available at 1.52% for borrowers with a 25% deposit, with no fee.

TSB has also reduced interest rates on some of its two-year fixed mortgage range for first-time buyers, meaning that customers with a 10% deposit can get a mortgage rate of 3.39%.