Lender is reducing interest rates across two-, three-, five- and 10-year fixed products
Nationwide Building Society is cutting fixed mortgage rates for new and existing customers, with changes taking effect from tomorrow, 26 June.
Rates across two-, three-, five-, and 10-year fixed products will fall by up to 25 basis points (bps), bringing the lender's lowest fixed rate to 4.19%.
For first-time buyers, reductions of up to 18bps apply across fixed rate products up to 95% LTV. Among the new rates, the three-year fixed at 75% LTV with a £999 fee falls to 4.69% (down 15bps), the five-year fixed at 85% LTV with a £999 fee to 4.62% (down 5bps), and the two-year fixed at 90% LTV with a £999 fee to 4.82% (down 5bps). First-time buyers completing a mortgage with Nationwide receive £500 cashback, and those purchasing an energy-efficient property may also qualify for up to £500 cashback through Nationwide's Green Reward scheme, as may home movers.
On remortgage products, cuts of up to 25bps apply across two-, three- and five-year fixed products up to 95% LTV. The two-year fixed at 60% LTV with a £999 fee moves to 4.49% (down 12bps), the three-year fixed at 75% LTV with no fee to 4.94% (down 25bps), and the five-year fixed at 60% LTV with a £999 fee to 4.59% (down 5bps).
Existing Nationwide customers approaching the end of their current deal will see reductions of up to 14bps across two-, three- and five-year fixed products up to 90% LTV. The two-year fixed at 60% LTV with a £999 fee falls to 4.44% (down 12bps), the three-year fixed at 75% LTV with no fee to 4.94% (down 5bps), and the five-year fixed at 60% LTV with a £999 fee to 4.54% (down 5bps). Nationwide said all switcher product rates remain the same as or lower than equivalent remortgage rates, in line with its existing mortgage customer pricing pledge.
For home movers, existing and new customers will see reductions of up to 15bps across two-, three-, five- and 10-year fixed products up to 95% LTV. The two-year fixed at 90% LTV with no fee falls to 4.89% (down 10bps), the two-year fixed at 60% LTV with a £1,499 fee to 4.19% (down 10bps), and the five-year fixed at 90% LTV with a £999 fee to 4.69% (down 5bps). Nationwide said home mover rates for existing customers remain the same as or lower than those available to new customers.
Friday's rate cuts are the latest in a series of Nationwide repricing moves this month. On 10 June, the lender reduced rates on its switcher range by up to 0.12%, covering two-, five- and 10-year fixed rate products. The following week, on 15 June, Nationwide cut rates across its wider fixed mortgage range by up to 28bps across two-, three-, five- and ten-year products, bringing its lowest available rate at that time to 4.29%.
"We're delighted to be making another set of rate cuts this month," said Henry Jordan (pictured right), group director of mortgages at Nationwide. "As an all-round lender, we're committed to supporting all borrower types. These latest reductions will help ensure Nationwide remains a strong choice for new and existing customers – whether they're buying their first home, moving to their next, or looking for a new deal."
Aaron Strutt, product director at mortgage broker Trinity Financial, welcomed the increasing frequency of rate reductions among larger lenders, noting the positive impact for home buyers and existing mortgage customers.
"Nationwide already had the cheapest two- and five-year fixes, but the lender is lowering its prices again hot on the heels of Barclays, which dropped its rates twice in the space of a few days," he said. "Hopefully, a few other big lenders will do the same thing soon."
Meanwhile, The Mortgage Works, the specialist buy-to-let arm of Nationwide Building Society, is also cutting rates by up to 25bps on selected one-, two- and five-year fixed rate products for new buy-to-let and limited company buy-to-let customers, also marking the lender's third rate reduction this month.
Revised rates included a two-year fixed limited company buy-to-let mortgage at 4.09% (down 25bps) and a two-year fixed buy-to-let product at 3.19% (down 10bps), both carrying a 3% fee. A five-year fixed buy-to-let rate was also reduced by 15bps to 3.99% with a 3% fee; the two- and five-year purchase and remortgage products were available up to 65% LTV, while the limited company option was available up to 75% LTV.
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