Another lender follows suit with rate reductions across key residential products
Mortgage lenders Nationwide and Leeds Building Society have announced reductions across their mortgage product ranges following the Bank of England’s decision to lower the base rate by 0.25 percentage points earlier today.
Nationwide confirmed that its standard mortgage rate (SMR) will fall to 6.99%, effective from June 1. Tracker mortgage customers will also see automatic rate cuts in line with the bank rate change, starting the same day.
In addition to changes for variable rate products, Nationwide has adjusted rates on fixed mortgage deals. From tomorrow, May 9, selected switcher and remortgage products will see reductions of up to 22 basis points (bps). The lender’s lowest remortgage rate is now 3.84% for both two- and five-year fixed deals at 60% loan-to-value (LTV), with a £1,499 fee. Equivalent switcher products for existing borrowers begin at the same rate but come with a £999 fee.
Among the updated remortgage options, the two- and five-year fixed rates at 60% LTV have each been cut by 10bps to 3.84%. A three-year fixed rate at 90% LTV now stands at 4.89%, down 22bps. Meanwhile, a two-year fixed rate at 75% LTV with no product fee has been reduced by 11bps to 4.54%.
For switcher customers, the lender has also applied reductions of up to 21bps. Two- and five-year fixed rates at 60% LTV are now priced at 3.84%, both down by 10bps. The three-year fixed rate at 90% LTV is now 4.89%, and the two-year fixed rate at 75% LTV is priced at 4.09% following a cut of 8bps.
Meanwhile, Leeds Building Society is also adjusting rates across its residential mortgage range in response to the central bank’s decision. From Saturday, May 10, the lender will implement reductions of up to 18bps.
Its updated three-year fixed mortgage will carry a rate of 4.59%, available up to 80% LTV with no completion fee. A five-year fixed option will be priced at 4.26% for loans up to 65% LTV, also with no fee on completion. Both offers include free standard valuations, legal support for remortgages, and allow up to 10% capital overpayment each year without penalty.
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