Rate wars roll on – now could be the time to get your clients moving on deals
Major lenders Nationwide and Barclays have announced cuts to selected mortgage rates, offering relief to homebuyers, first-time buyers, and existing mortgage customers.
The reductions, effective from tomorrow, February 21, reflect ongoing lender adjustments in response to market conditions.
Nationwide mortgage rates
Nationwide will reduce rates by up to 33 basis points (bps) across a range of products, with rates now starting from 4.09%.
For new customers moving home, reductions of up to 22bps will apply across two-, three-, and five-year fixed rate products up to 95% loan-to-value (LTV). Highlights include a five-year fixed rate at 60% LTV with a £1,499 fee reduced to 4.09%, and a two-year fixed rate at 95% LTV with no fee now at 5.42%.
First-time buyers will also benefit from rate reductions of up to 33bps. Key changes include a two-year fixed rate at 80% LTV with a £999 fee reduced by 0.33% to 4.50%, and a two-year fixed rate at 95% LTV with a £999 fee cut by 0.25% to 5.29%.
“As one of the UK’s largest lenders, we remain as committed as ever to supporting home movers and first-time buyers, with these reductions following our cuts for remortgage and switcher customers last week,” said Carlo Pileggi, mortgages senior manager at Nationwide Building Society.
“These latest reductions bring five-year and two-year fixed rates closer together, with our first-time buyer £999 fee products fully aligned across both terms. We now have some of the most competitive rates on the market, whether it be for first-time buyers or customers moving home.”
Barclays mortgage rates
Meanwhile, following last week’s introduction of a sub-4% mortgage rate, Barclays announced that it would reduce rates across its existing mortgage customer range, covering both residential and buy-to-let products. Reductions span multiple LTV tiers and fixed rate periods.
For residential customers, the two-year fixed rate at 60% LTV will drop from 4.60% to 4.43%. The 75% LTV option with a £999 fee will fall from 4.52% to 4.40%, while at 85% LTV with a £999 fee, rates will decline from 5.09% to 4.82%. Borrowers with an LTV over 85% will see rates lowered from 6.02% to 5.82%.
Five-year fixed residential products at 85% LTV will also decrease, with the £999 fee option dropping by 0.3 percentage points from 4.87% to 4.57%. The fee-free version will reduce from 4.97% to 4.70%.
In the BTL segment, the two-year fixed rate at 65% LTV with a £1,795 fee will fall from 4.70% to 4.40%, while the fee-free option will reduce from 5.15% to 4.78%. For 75% LTV, the two-year fixed rate with a £1,795 fee will decrease from 5.01% to 4.55%.
BTL customers opting for a five-year fixed rate at 65% LTV without a fee will also see rates lowered from 4.57% to 4.50%.
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