Lender responds to market competition with lower fixed rates
Nationwide will introduce reductions of up to 25 basis points on its two-, three-, five-, and 10-year fixed rate mortgages, effective from tomorrow, Nov. 5.
The revised rates will apply to a wide range of products for home movers, remortgagors, switchers, and first-time buyers.
After these changes, Nationwide’s lowest fixed rate will be 3.64%. This rate is available to both new and existing customers moving home who choose a two-year fixed product at 60% loan-to-value (LTV) with a £1,499 fee.
For home movers, reductions of up to 0.24% will be applied across fixed rate products up to 95% LTV. The two-year fixed rate at 60% LTV with a £1,499 fee will be 3.64%, a decrease of 0.16%. The three-year fixed rate at 60% LTV with a £999 fee will be 3.75%, reduced by 0.24%. The five-year fixed rate at 60% LTV with a £999 fee will be 3.89%, down 0.10%. The two-year fixed rate at 85% LTV with a £999 fee will be 3.99%, a reduction of 0.13%. The lender continues to offer home movers the same or lower rates as those available to new customers.
Remortgage customers will see reductions of up to 0.25% across fixed rate products up to 95% LTV. The two-year fixed rate at 60% LTV with a £1,499 fee will be 3.79%, down 0.15%. The two-year fixed rate at 80% LTV with a £999 fee will be 4.19%, reduced by 0.25%. The five-year fixed rate at 60% LTV with a £999 fee will be 3.89%, a decrease of 0.15%.
Existing Nationwide borrowers coming to the end of their current deal will also benefit from reductions of up to 0.25% on switcher rates. The two-year fixed rate at 60% LTV with a £999 fee will be 3.79%, down 0.10%. The five-year fixed rate at 60% LTV with a £999 fee will be 3.84%, reduced by 0.10%. The two-year fixed rate at 90% LTV with no fee will be 4.79%, a reduction of 0.25%. Nationwide’s pricing pledge remains in place, ensuring that switcher rates are always equal to or lower than those for remortgage customers.
First-time buyers will see reductions of up to 0.17% across fixed rate products up to 95% LTV. The two-year fixed rate at 60% LTV with a £1,499 fee will be 3.89%, down 0.10%. The two-year fixed rate at 75% LTV with a £999 fee will be 3.99%, reduced by 0.10%. The two-year fixed rate at 85% LTV with no fee will be 4.34%, a decrease of 0.17%. The five-year fixed rate at 90% LTV with a £999 fee will be 4.35%, down 0.10%.
The Nationwide rate cut is the latest in a series of recent pricing reductions by major mortgage lenders, prompted by increasing market confidence that the Bank of England will lower the base rate again before the end of the year.
“These changes will put Nationwide firmly on the radar for all borrower types as we aim to position the country’s largest building society as one of the most competitively priced lenders in the market,” said Carlo Pileggi, head of mortgage products at Nationwide Building Society. “We’re making rate cuts across the majority of our fixed rate mortgage range with a number of sub-4% products and a market-leading rate for home movers.”
The latest rate reductions follow recent changes to the lender’s interest only mortgage offering.
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