The rate reductions will benefit new customers moving home, first-time buyers, and remortgagers
Nationwide Building Society has announced new rate cuts of up to 29 basis points (bps) on selected fixed mortgage products.
The rate reductions, which will be effective from tomorrow, September 13, will benefit new customers moving home, first-time buyers, and remortgagers.
Reductions of up to 0.29% across two- and three-year fixed products up to 95% loan-to-value (LTV) will be made for new customers moving home. These include a 5.64% three-year fix at 60% LTV with a £999 fee and a 6.44% two-year fix at 95% LTV with a £999 fee.
Read the latest Nationwide BS mortgage rates at the link.
For first-time buyers, reductions of up to 0.25% across selected two- and three-year fixes up to 95% LTV will be implemented by the lender. These include a 5.94% three-year fix at 75% LTV and a 5.89% two-year fix at 60% LTV with a £999 fee.
Those remortgaging will also benefit from rate reductions of up to 18bps across selected two- and three-year fixes up to 90% LTV, including a 6.09% three-year fix at 75% LTV and a 6.14% two-year fix at 60% LTV.
Nationwide is also reducing switcher, additional borrowing, and rates for existing customers moving home by up to 0.14%.
Full details of all rates included in the latest rate cuts can be found online through Nationwide’s intermediary website.
“Swap rates continue to fall, allowing us to make further reductions to our mortgages rates,” said Henry Jordan, director of home at Nationwide Building Society. “These changes demonstrate our continued efforts to support existing members who are coming to the end of their current deal and new customers looking to take a mortgage with the society.”
Diarmuid Phoenix, mortgage and protection adviser at Mint Mortgages & Protection, commented that the rate cut is a welcome response from Nationwide and other lenders, given the alarming news of increasing mortgage arrears earlier today.
“This may help some customers, though we continue on a rollercoaster of rate changes in the industry,” Phoenix said. “But in the current market, we’ll take all the good news we can.”
Rob Gill, managing director at Altura Mortgage Finance, said the rate reductions “look increasingly like the opening salvos in a full-on mortgage price war.”
“Lenders seek to make up for lost business,” Gill pointed out. “We’re edging ever closer to fixed rates starting with a ‘4’, which in turn could see the recovery of the property market as purchase borrowers re-enter the market.”
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