Reductions across two-, three- and five-year fixes to take effect Friday
Nationwide has become the latest major lender to announce reduced mortgage pricing, lowering rates across its fixed-rate range for first-time buyers and home movers from tomorrow, 24 April.
The building society said reductions will reach 25 baiss points (bps) on selected two-, three-, and five-year fixes, bringing its lowest rate to 4.50%.
For first-time buyers, the changes apply to products up to 95% loan-to-value. Examples include a five-year fix at 90% LTV with a £999 fee at 5.25% after a 25bp cut; a two-year fix at 60% LTV with a £1,499 fee at 4.66% following a 24bp reduction; and a three-year fix at 80% LTV with a £999 fee at 5.05% after a 25bp fall.
Nationwide said first-time buyers will receive £500 cashback on completion. It added that first-time buyers and home movers may qualify for up to £500 cashback through its Green Reward when purchasing an energy-efficient property.
For existing and new customers moving home, Nationwide said it will also reduce rates by up to 0.25 points across two, three and five-year fixed products up to 95% LTV. Illustrative deals include a two-year fix at 60% LTV with a £1,499 fee at 4.50% after a 0.16-point cut; a five-year fix at 80% LTV with a £999 fee at 4.81% following a 0.17-point reduction; and a two-year fix at 75% LTV with a £1,499 fee at 4.65% after a 0.12-point fall.
“We’re delighted to be able to make cuts to our mortgage rates to support both first-time buyers and those looking to move to their next home,” said Carlo Pileggi (pictured right), head of mortgage products at Nationwide.
“These changes apply across those ranges, with some of our largest cuts being made on higher loan-to-value mortgages, which will benefit first-time buyers looking to get onto the property ladder.”
The mutual said the repricing maintains its approach of offering existing customers who are moving home rates that are the same as, or lower than, equivalent products available to new borrowers.
“Nationwide’s last mortgage rate change was on the 1st April; and while its rates were pretty much market leading at the time, they didn’t look great,” commeted Aaron Strutt, product director at mortgage broker Trinity Financial.
“This time, Nationwide has gone one step further than its competitors by offering two-year fixes from 4.50%, three-year fixes from 4.68% and five-year fixes also from 4.68%. Its tracker rates look good as they start from 4.14%.
“While it is great to see rates come down again, the only question is how long it will be before the lender has to increase them.”
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