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Highlights
- Nationwide Building Society announced the launch of a fixed mortgage rate of 0.87% for a two-year period at a fee of £1,499 and a 40% deposit.
- Barclays has launched a fixed mortgage rate of 0.85% for a two-year period at a fee of £999 and a 40% deposit.
UK-based mortgage lenders are launching new deals with sub-0.90% interest rates to attract borrowers. Barclays and Nationwide Building Society announced their new deals with a below 0.9% rate for a fixed period of two years and a 40% deposit, starting 3 September 2021. Another lender TSB Bank, lowered its mortgage interest rate to 3.39% on its two-year period loan for customers with a 10% deposit.
Here we explore the investment prospect of the two lenders offering sub-0.9% mortgage rates from today.
Nationwide Building Society (LON: NBS)
Nationwide Building Society is a provider of savings schemes and mortgages. It is among the most prominent building societies in the world. It also offers credit cards, current accounts, personal loans, and ISAs. Nationwide recorded a customer and member base of 16 million. The company announced a fixed mortgage rate of 0.87% for a two-year period at a fee of £1,499 and a 40% deposit, which will be available starting 3 September 2021.
For the year ended 4 April 2021, NBS’ statutory pre-tax profit rose to £823 million compared to £466 million in 2020. The company recorded a total gross residential mortgage lending of £29.6 billion (2020: £30.9 billion).
Nationwide Building Society’s shares traded at GBP 164.00 at 8:30 AM on 3 September 2021. The market capitalisation of the company stood at £1,731.10 million.
Barclays Plc (LON: BARC)
Barclays is engaged in offering retail banking services to small businesses and consumers, as well as corporate and investment banking services to larger businesses. The company announced the launch of fixed mortgage rate of 0.85% for a two-year period at a fee of £999 and a 40% deposit, available from 3 September 2021.
In August 2021, Barclays inked an agreement with Synchrony Bank to take over a portfolio of US co-branded credit cards issued in partnership with The Gap, Inc. The total portfolio comprised nearly $3.8 billion receivables as of June 2021, and the acquisition is slated for completion in Q2 2022.
Barclays’ shares traded at GBX 185.44, down slightly by 0.02% at 8:29 AM on 3 September 2021. The company’s shares have given a return of 79.29% over the last one year to shareholders, and the market capitalisation of the company stood at £31,385.40 million.
