Lender announces new cuts amid intensifying rate cuts
Nationwide Building Society has announced it will lower rates by up to 0.21 percentage points on selected two-, three-, and five-year fixed mortgage products, with the new rates taking effect from tomorrow, July 30. The lender’s lowest fixed rate will now stand at 3.74%.
Nationwide’s revised rates will apply to first-time buyers, home movers, and those seeking new mortgage deals. For first-time buyers, reductions of up to 0.21 percentage points will be introduced on two- and three-year fixed products up to 90% loan-to-value (LTV). Notable changes include a three-year fixed rate at 90% LTV with no fee set at 4.79% (down 0.21 percentage points), a two-year fixed at 90% LTV with a £999 fee at 4.33% (down 0.11 percentage points), and a two-year fixed at 60% LTV with a £1,499 fee at 3.86% (down 0.08 percentage points).
For new customers moving home, reductions of up to 0.18 percentage points will apply across two-, three-, and five-year fixed products up to 95% LTV. This includes a two-year fixed at 60% LTV with a £1,499 fee at 3.74% (down 0.07 percentage points), a two-year fixed at 90% LTV with a £999 fee at 4.27% (down 0.18 percentage points), and a five-year fixed at 85% LTV with a £999 fee at 4.09% (down 0.11 percentage points).
Existing customers moving home will also see rate reductions of up to 0.18 percentage points on selected fixed products up to 95% LTV. Among the updated options are a two-year fixed at 60% LTV with a £1,499 fee at 3.74% (down 0.07 percentage points), a two-year fixed at 90% LTV with a £999 fee at 4.27% (down 0.17 percentage points), and a five-year fixed at 85% LTV with a £999 fee at 4.09% (down 0.10 percentage points).
For remortgage customers, the lender will cut rates by up to 0.15 percentage points on two- and five-year fixed products between 75% and 90% LTV. For example, the two-year fixed at 75% LTV with a £999 fee will be 3.99% (down 0.15 percentage points).
The move comes as the mortgage market experiences heightened competition, with a pronounced rate war among lenders in recent months. Several major banks and building societies have announced reductions in their fixed rate products, aiming to attract both new and existing customers. This competitive environment has also prompted smaller, specialist lenders to introduce cuts, each seeking to maintain or expand their share of the mortgage market.
These rate adjustments present both opportunities and challenges for mortgage brokers. On one hand, brokers can offer clients more attractive deals, potentially helping more borrowers secure affordable financing or remortgage at lower rates. On the other hand, the rapidly changing landscape requires brokers to stay vigilant and up to date with the latest offerings, as rate changes can occur frequently and with little notice. This dynamic market underscores the importance of timely advice and close relationships between brokers and lenders, ensuring borrowers receive the most suitable options available.
Nationwide stated that its latest rate adjustments maintain its commitment to offering existing customers moving home the same or lower rates than those available to new customers. The lender’s pricing pledge also ensures that switcher product rates for existing mortgage customers will not exceed remortgage equivalents..
“As the country’s second largest lender, we always strive to support all parts of the market with competitive rates,” said Carlo Pileggi, senior manager of mortgages at Nationwide Building Society. “This latest round of cuts across our range move even more of our rates below 4% and should put Nationwide front of mind of first-time buyers, those moving on to their next home, and those looking for a new mortgage deal.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
