Fresh round of rate cuts hits the market as lenders compete ahead of an anticipated Bank of England decision
Nationwide Building Society is reducing rates on its switcher range by up to 0.12% from tomorrow, 10 June, covering two-, five- and 10-year fixed rate products.
Switcher products, available to existing Nationwide customers approaching the end of their current mortgage deal, will start from 4.56%.
The revised rates include a two-year fixed rate at 60% loan-to-value (LTV) with a £999 fee at 4.56%, down 0.03%; a five-year fixed rate at 60% LTV with a £999 fee at 4.59%, down 0.10%; and a five-year fixed rate at 75% LTV with no fee at 4.83%, down 0.12%.
"We're making these latest rate cuts to support existing customers as they come to the end of their current deal," said Carlo Pileggi (pictured right), head of mortgage products at Nationwide Building Society.
"Together with our pricing pledge – ensuring switcher rates will be the same or lower than the remortgage equivalents – it reflects our commitment to helping our customers secure the best possible rate on a new mortgage deal."
Also effective from tomorrow, HSBC will implement a series of reductions across its residential and buy-to-let mortgage ranges.
Lloyds Bank and Halifax moved earlier in the week, cutting rates by up to 0.10% across homemover, first-time buyer and remortgage products, covering two-, three- and five-year fixed deals. Product transfer and further advance rates were reduced by up to 0.07 percentage points. The lenders had made a previous round of cuts last week.
NatWest also reduced mortgage rates by up to 0.15%, with reductions applying to both new customer and product transfer products.
The rate reductions come ahead of the Bank of England's Monetary Policy Committee meeting next week, at which the policymaker will decide whether the base rate will stay at 3.75%, move lower, or shift higher again. Market pricing strongly favours a hold at 3.75%, with traders largely ruling out a rate increase at the June meeting.
Lender behaviour over the past month appears to confirm that view, with many quietly holding or trimming their rates rather than pushing higher. Fixed mortgage pricing is driven more by swap rates and lender funding expectations than by Bank Rate alone, and inflation fell to 2.8% in April, aided by a reduction in the household energy price cap — a development that has given lenders greater room to compete on price ahead of the Bank of England rate announcement.
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