Nationwide offers rates below 4%

Nationwide has announced that it is reducing rates by up to 0.25 percentage points on selected two-, three-, and five-year fixed mortgage products, with the new rates taking effect from Friday, February 28.

The building society’s lowest mortgage rate now stands at 3.99%, available to both existing customers switching deals and new customers remortgaging.

“Our third set of rate cuts in three weeks should come as great news for borrowers,” said Carlo Pileggi, senior manager for mortgages at Nationwide Building Society. “We remain as committed as ever to supporting all segments of the market, including those buying their first home or moving to their next, and with our switcher and remortgage rates starting from 3.99%, we aim to be front of mind for those looking for a new deal too.”

With these latest reductions, Nationwide joins other major lenders such as Santander and Barclays in offering mortgage rates below 4%. Earlier this year, Santander became the first major UK lender to introduce sub-4% rates. However, it withdrew one of its 3.99% products last week.

For existing customers looking to switch, Nationwide will decrease rates by up to 0.17% on selected fixed products up to 90% loan-to-value (LTV). The five-year fixed rate at 60% LTV with a £999 fee will drop by 0.13% to 3.99%. The two-year fixed rate at 60% LTV with a £999 fee will be lowered by 0.15% to 4.09%, while the five-year fixed rate at 75% LTV with no fee will decrease by 0.17% to 4.32%.

Nationwide said its mortgage pricing pledge remains in place, ensuring that existing borrowers switching to a new deal will receive the same or a lower rate than remortgage customers.

For remortgage customers, the lender is reducing rates by up to 0.15% across fixed-term products up to 90% LTV. The five-year fixed rate at 60% LTV with a £1,499 fee will be cut by 0.13% to 3.99%. The two-year fixed rate at 60% LTV with a £1,499 fee will drop by 0.15% to 4.09%, while the five-year fixed rate at 60% LTV with no fee will be reduced by 0.14% to 4.24%.

First-time buyers will see reductions of up to 0.25% on fixed products up to 95% LTV. The five-year fixed rate at 90% LTV with a £999 fee will decrease by 0.25% to 4.74%. The two-year fixed rate at 85% LTV with no fee will be reduced by 0.06% to 4.99%, while the three-year fixed rate at 75% LTV with a £999 fee will drop by 0.05% to 4.39%.

For those moving home, rates will be reduced by up to 0.14% for new customers and up to 0.10% for existing customers. The five-year fixed rate at 60% LTV with a £1,499 fee will be lowered by 0.07% to 4.02%. The three-year fixed rate at 60% LTV with a £999 fee will drop by 0.10% to 4.09%, while the five-year fixed rate at 85% LTV with a £999 fee will be reduced by 0.06% to 4.39%.

Nationwide is also lowering rates for additional borrowing, with reductions of up to 0.15% on selected two-, three-, and five-year fixed products up to 90% LTV, starting from 3.99%.

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