The move brings Nationwide’s lowest available mortgage rate down to 4.29% and places several of its products among the cheapest currently available. The reductions come at a time when lenders are competing for borrowers in a market that brokers describe as relatively subdued.
Nationwide said the latest changes affect two, three, five and ten-year fixed-rate mortgages across a range of loan-to-value (LTV) levels. According to the building society, the cuts follow reductions announced on 10 June for existing customers approaching the end of their current mortgage deals.
Lower Rates Introduced for First-Time Buyers and Home Movers
The latest changes include reductions of up to 0.20 percentage points for first-time buyers. According to Nationwide, a five-year fixed-rate mortgage at 90% LTV with no fee has been reduced to 4.89%, while a five-year fixed-rate deal at 60% LTV with a £1,499 fee now stands at 4.62%.
The lender has also lowered rates for customers purchasing a home. Its lowest rate is now a two-year fixed mortgage at 4.29% for borrowers with a 40% deposit, equivalent to 60% LTV, and carrying a £1,499 fee. The product is available to both new and existing customers moving home.
Other reductions include a five-year fixed-rate mortgage at 80% LTV with a £999 fee, now priced at 4.59%, and a five-year fixed-rate deal at 90% LTV with the same fee, reduced to 4.74%.
According to This is Money, the 4.29% mortgage is currently lower than comparable two-year fixed-rate products from Halifax and Lloyds Bank, although those alternatives carry slightly smaller arrangement fees.
Nationwide also noted that first-time buyers receive £500 cashback when completing a mortgage. Eligible purchasers of energy-efficient properties may qualify for additional cashback through the lender’s Green Reward scheme.
Remortgage Products Also Reduced across Multiple Terms
Borrowers looking to remortgage will also see reductions across Nationwide’s range. According to the lender, the largest decrease is a 0.28 percentage-point cut to a two-year fixed-rate mortgage at 60% LTV with no fee, bringing the rate to 4.83%.
A two-year fixed remortgage product at 60% LTV with a £1,499 fee has been reduced to 4.56%, while a five-year fixed-rate mortgage at the same LTV level with a £999 fee now stands at 4.64%.
Carlo Pileggi, Nationwide’s Head of Mortgage Products, said the latest reductions were intended to support borrowers across different stages of the housing market. According to Nationwide, he said the changes would help first-time buyers, home movers and customers seeking new remortgage deals.
Mortgage brokers welcomed the announcement while cautioning against drawing direct conclusions from recent geopolitical developments. According to comments reported by the Express, several advisers said the reductions had likely been planned in advance and reflected funding costs, swap rates and competition between lenders rather than any single market event. The latest reductions continue Nationwide’s policy of offering existing customers rates that are the same as, or lower than, equivalent remortgage products available to new borrowers.
