It also lowers fixed rates on its additional borrowing range
Nationwide Building Society has made rate reductions of up to 35 basis points on its switcher mortgage products, which are available to its members coming to the end of their existing deals and looking for new ones.
Switcher deals across selected two, three- and five-year fixes had their rates lowered by up to 0.35% while two-year tracker products had their rates cut by up to 0.20%.
As a result of the lender’s latest rate reduction, its switcher five-year fixed rate at 60% loan-to-value (LTV) with a £999 fee is now priced at 5.24%, while the same product at 80% LTV is now at 5.29%.
The fee-free two-year fix at 60% LTV is now 5.99%, while its product equivalent with a £999 fee now has a rate of 5.79%. The two-year tracker rate at 85% LTV with a £999 fee is now 5.34%.
The rate changes continue the mutual’s existing mortgage member pricing pledge, which means that Nationwide’s switcher products will be the same or lower than their remortgage equivalents.
In addition, Nationwide said it was also reducing selected two-, three-, and five-year fixed rates on its additional borrowing range by up to 0.35%.
The full details of all rates included in the latest changes can be accessed online through Nationwide’s intermediary website.
“With swap rates having fallen slightly in recent weeks, we have been able to reduce rates on our switcher range,” said Henry Jordan, director of home at Nationwide Building Society. “These reductions demonstrate our continued efforts to support existing members who are coming to the end of their current deal.”
Ben Tadd, director at Lucra Mortgages, remarked that news of another big player in the mortgage market slashing their rates was only a good thing for existing homeowners and prospective first-time buyers alike.
“However small a mini-rate war this is likely to be, it’s a rate war all the same,” Tadd continued. “One the consumer market has been crying out for and will welcome with open arms.
“Lenders are likely to have already priced in any potential base rate rises to be announced next week, into their newly released product ranges over the last few days, so it’s unlikely there will be a knee-jerk reaction to hike these new rates back up again next week.”
Riz Malik, founder and director at R3 Mortgages, agreed, saying that despite the anticipated base rate hike next week, there seems to be a newfound tranquillity in the rate landscape.
“This week is shaping up to be a standout one in recent months, as Nationwide joins the ranks of mortgage lenders lowering selected rates,” he added.
“But the question remains: how much of this calm is seasonal versus an indication of improving market conditions? We will certainly find out in the weeks ahead.”
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