It reduces selected fixed and tracker mortgage rates by up to 0.15%
Nationwide Building Society has made further rate reductions on selected fixed and tracker mortgage products, with lowered rates available from today, September 1.
On the lender’s remortgage range, as well as those for new customers moving home, rates of selected two-, three-, and five-year fixed products, and two-year tracker products up to 90% LTV were slashed by up to 15 basis points (bps).
Rates of selected two-, three-, and five-year fixed products up to 95% LTV were also cut by up to 15bps for first-time buyers.
In addition, Nationwide has reduced selected two-, three-, and five-year fixed and two-year tracker rates for existing customers moving home by up to 0.15%, while switcher and additional borrowing rates were lowered by up to 0.10%.
Full details of all rates included in the latest rate cuts can be found online through Nationwide’s intermediary website.
“The current swap rate environment is enabling us to make further rate cuts across our mortgage rates,” said Henry Jordan, director of home at Nationwide Building Society. “This is now the fourth time we’ve been able to reduce our rates over the last month, as we look to support all types of borrowers as much as we can.”
Meanwhile, news agency Newspage sought the views of brokers on the latest rate reduction announced by one of the largest mortgage lenders in the UK.
Riz Malik, founder and director at R3 Mortgages, said that even minor rate reductions were appreciated, especially considering the hikes borrowers had experienced over the past six months.
“The current trend in rate cuts appears to be ‘little but frequent’,” he noted. “Either way, here’s hoping this trend extends into the coming weeks.”
Ashley Thomas, director at Magni Finance, echoed Malik’s sentiment, saying that he expected the trend to continue.
“Most will be hoping it is the start of a price war,” he added. “The next set of inflation data will be a big factor in whether rates will continue to go down.”
Lewis Shaw, owner of Shaw Financial Services, meanwhile, said that while the rate cut was “another step in the right direction”, this could be a short-lived reprieve if the Bank of England continued to increase the base rate next month.
“We’ve seen several changes in lending policy, such as lenders opting to allow longer terms and expanding the types of income they will allow, which all point to lenders trying to be more flexible as their lending volumes decrease and they seek to get more new business on the books,” Shaw pointed out.
“This shows that reduced housing and mortgage market demand is now starting to bite, and banks are looking for any way to keep the wheels turning as the growing clouds above the economy are slamming the brakes on borrowing.”
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