Nationwide Building Society has announced significant reductions in mortgage interest rates, providing some relief for homebuyers and those looking to remortgage. The move follows recent adjustments to the Bank of England‘s base rate, which have influenced borrowing costs across the UK.
This reduction comes as part of a wider response from lenders following the easing of inflation, which had previously surged to 11.1% before dropping to approximately 3%.
Lower mortgage rates in response to economic changes
Over recent years, the Bank of England has raised interest rates multiple times to tackle soaring inflation. These measures increased mortgage costs significantly, making homeownership and refinancing more expensive for many borrowers.
Now, with inflation stabilising and the Bank of England beginning to reverse some of these hikes, mortgage lenders such as Nationwide are adjusting their rates accordingly.
As reported by GB News, Nationwide had already reduced mortgage rates for remortgage and switcher customers the previous week, and these new reductions extend similar benefits to home movers and first-time buyers.
Mortgage rate reductions for home movers
For customers purchasing a home, Nationwide has lowered interest rates across several fixed-rate products. The five-year fixed rate at 60% loan-to-value (LTV) with a £1,499 fee has been reduced to 4.09%, down by 0.05 percentage points.
The five-year fixed rate at 85% LTV with a £999 fee now stands at 4.45%, a decrease of 0.13 percentage points. Similarly, the three-year fixed rate at 75% LTV with a £999 fee has dropped to 4.34%, reflecting a 0.05 percentage point reduction.
The two-year fixed rate at 75% LTV with a £1,499 fee has been cut to 4.24%, down by 0.13 percentage points, while the two-year fixed rate at 95% LTV with no fee has been lowered to 5.42%, representing a reduction of 0.22 percentage points.
These reductions could help borrowers manage their monthly repayments more effectively, especially at a time when affordability remains a key concern for many homeowners.
First-time buyers see rate reductions
First-time buyers are also benefiting from reduced mortgage rates. The three-year fixed rate at 60% LTV with a £999 fee has dropped to 4.29%, a 0.05 percentage point reduction. Meanwhile, the three-year fixed rate at 85% LTV, also with a £999 fee, now stands at 4.64%, a decrease of 0.05 percentage points.
The two-year fixed rate at 80% LTV with a £999 fee has been cut significantly to 4.50%, down by 0.33 percentage points. For those with a 95% LTV, the two-year fixed rate with a £999 fee has fallen to 5.29%, a reduction of 0.25 percentage points.
These adjustments are designed to make homeownership more attainable for those entering the property market.
Competitive rates in a shifting mortgage landscape
Carlo Pileggi, Nationwide’s senior manager for mortgages, highlighted the company’s commitment to assisting home movers and first-time buyers.
“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.” he stated.
He added that aligning five-year and two-year fixed rates offers greater flexibility, particularly with first-time buyer products that include a £999 fee. He also emphasised that Nationwide now provides some of the most competitive rates available, benefiting both new buyers and those relocating.
