Some product rates are set to go below 5%
Nationwide Building Society has announced new rate reductions across the majority of its fixed rate mortgage products, with the lower rates available from tomorrow, September 22.
With rate cuts of up to 31 basis points (bps), the lender will be offering sub-5% rates on its residential mortgage range.
Five and 10-year rates for first-time buyers and home movers will start at 4.94%, while two-year fixed rates will be offered below 5.5%, with rates for home movers starting from 5.44%.
New customers moving home will also benefit from rate reductions of up to 30bps across two-, three-, five- and 10-year fixed rate products up to 95% loan-to-value (LTV).
First-time buyer product rates will be slashed by up to 31bps across two-, three-, five-, and 10-year fixes up to 95% LTV. Rates of remortgage products will also get reductions of up to 26bps across two-, three-, five-, and 10-year fixes up to 90% LTV.
The lender is also reducing rates across its switcher range by up to 30bps, with rates starting from 4.94% on five-year fixed products. It is also lowering additional borrowing and rates for existing customers moving home by up to 30bps.
Nationwide said its existing mortgage member pricing pledge applies to the latest rate changes, meaning the switcher product rates will be the same or lower than the remortgage equivalents.
Full details of all rates included in these rate cuts can be found online through Nationwide’s intermediary website.
“The fall in swap rates over recent weeks and following the announcement that bank rate is being held at its current level means that we are able to make further rate cuts across the majority of our fixed rate mortgage range,” Henry Jordan, director of home at Nationwide Building Society, said.
“These latest changes mean we’re now offering sub-5% rates to borrowers, whether they are buying their first home or moving to their next.”
Brokers, who provided their views to news agency Newspage, said more lenders are now expected to reprice their own products with Nationwide leading the way just a couple of hours after the Bank of England base rate announcement.
“Ideal timing from Nationwide, launching up to 0.31% off their fixed rates just two hours after the base rate hold was announced,” Justin Moy, managing director at EHF Mortgages, commented.
“Sub-5% deals on longer-term deals, below 5.5% for two-year deals, and the domino effect of further market rate cuts will be with us very soon. It’s a great day for mortgage borrowers.”
Stephen Perkins, managing director at Yellow Brick Mortgages, agreed, saying “there is a tidal wave of rate reductions about to hit following the decision by the Bank of England to hold the base rate today.”
“This will give lenders confidence we are near or at peak, and therefore, they will continue their rate war to win market share. This is great news for homeowners and those planning to buy and will pump some adrenaline into the heart of the property market.”
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