Lender also introduces new fixed rate products at 90% and 95% LTV
Nationwide Building Society will lower rates on selected mortgage products by up to 0.26 percentage points, effective from tomorrow, March 21.
The reductions will apply to certain two-, three-, and five-year fixed rate products for borrowers with loan-to-value (LTV) ratios between 80% and 95%. The rate cuts will benefit first-time buyers, home movers, and those looking for a new mortgage deal.
As part of these changes, Nationwide will introduce sub-5% rates for borrowers with a 5% deposit, covering both first-time buyers and those moving home. The lender is launching new fixed rate mortgage products with a £1,499 fee at 90% and 95% LTV, including a five-year fixed rate mortgage at 4.99% for first-time buyers at 95% LTV.
For new customers moving home, Nationwide – one of the UK’s largest mortgage lenders – is reducing rates by up to 0.21% across its fixed rate products. The five-year fixed rate at 95% LTV with a £999 fee will be 4.99%, down 0.05 percentage points. The two-year fixed rate at 90% LTV with no fee will drop 0.21 percentage points to 4.99%.
The five-year fixed rate at 90% LTV with a £999 fee will be reduced by 0.10 percentage points to 4.57%, while the two-year fixed rate at 80% LTV with a £999 fee will also decrease by 0.10 percentage points to 4.49%.
For existing customers moving home, reductions of up to 0.21% will apply. The two-year fixed rate at 90% LTV with no fee will be 4.99%, down 0.21 percentage points. The five-year fixed rate at 90% LTV with a £999 fee will decrease 0.10 percentage points to 4.57%. The two-year fixed rate at 85% LTV with a £999 fee will drop by 0.10 percentage points to 4.49%. Nationwide continues its policy of offering existing customers moving home the same or lower rates as new customers.
For first-time buyers, the five-year fixed rate at 95% LTV with a £999 fee will be reduced by 0.25 percentage points to 5.04%. The two-year fixed rate at 95% LTV with no fee will decrease by 0.26 percentage points to 5.30%, while the one at 85% LTV with a £999 fee will drop by 0.04 percentage points to 4.60%.
For remortgage customers, reductions of up to 0.12% will take effect. The two-year fixed rate at 85% LTV with no fee will be reduced by 0.12 percentage points to 5.15%. The two-year fixed rate at 85% LTV with a £999 fee will decrease by 0.05 percentage points to 4.84%. As part of its ongoing commitment to existing customers, Nationwide confirmed that all product switch rates will be equal to or lower than its remortgage rates.
The latest Nationwide product updates come as swap rates, which influence fixed mortgage pricing, continue their downward trend since the start of the year. This shift has given lenders more room to reduce mortgage rates, boosting optimism about improved affordability for borrowers.
“Our latest rate cuts will be welcome news to borrowers with smaller deposits, particularly first-time buyers, and we’re pleased to once again be offering rates below five per cent for those with a five per cent deposit,” said Carlo Pileggi, senior manager for mortgages at Nationwide Building Society.
“The introduction of our new £1,499 fee products will also widen the choice of products available for those who are considering Nationwide for their mortgage needs.”
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