Major lender reduces pricing for first-time buyers, movers and remortgagors
Nationwide Building Society is lowering rates across its fixed mortgage range, with new pricing coming into force tomorrow, Feb. 13.
The changes apply to two-, three-, and five-year fixed products and affect first-time buyers, home movers, remortgage customers and product switchers. Reductions are up to 0.16 percentage points, taking the society’s lowest fixed rate to 3.54%.
For first-time buyers, rates are being reduced by up to 0.16% on fixed deals up to 95% loan-to-value (LTV). The revised range includes a three-year fixed rate at 90% LTV with a £999 fee, priced at 4.40% following a 0.16 percentage point cut. The two-year fixed at 90% LTV with a £999 fee is now 4.10% after a reduction of 0.14%, while the two-year fixed at 60% LTV with a £1,499 fee is 3.67% after a 0.15% cut.
First-time buyers receive £500 cashback on completion when taking out a mortgage with Nationwide. In addition, both first-time buyers and home movers can access up to £500 cashback via Nationwide’s Green Reward for the purchase of an energy-efficient property.
For existing and new Nationwide borrowers moving home, rates on two-, three- and five-year fixes up to 95% LTV are being reduced by up to 0.15%. The updated pricing includes a two-year fixed rate at 60% LTV with a £1,499 fee at 3.54% after a 0.15% reduction. The five-year fixed rate at 85% LTV with a £1,499 fee is set at 3.94%, also down by 0.15%. The two-year fixed at 85% LTV with a £999 fee is now 3.78% following a 0.09% cut.
Nationwide said the latest rate adjustments continue its approach of offering existing customers who are moving home the same or a lower rate than equivalent deals for new borrowers.
Remortgage borrowers will see rate reductions of up to 0.15% on two-, three-, and five-year fixed products up to 90% LTV. The refreshed range includes a three-year fixed rate at 60% LTV with a £999 fee at 3.80%, reflecting a 0.15% cut, and a five-year fixed rate at 80% LTV with a £999 fee at 4.04% after a reduction of 0.10%.
For existing Nationwide customers switching at the end of their current deal, fixed rates up to 90% LTV are also being trimmed, by up to 0.11%. Among the revised switcher products, the three-year fixed at 80% LTV with a £999 fee is now 4.05% following a 0.11 percentage point reduction, while the five-year fixed at 80% LTV with a £999 fee stands at 3.99% after a 0.06% reduction.
These changes are also in line with Nationwide’s pricing pledge that switcher products will be priced at the same or a lower level than the equivalent remortgage deals.
“We review our mortgage rates on an ongoing basis to ensure they are sustainable and competitive for customers,” said Carlo Pileggi, head of mortgage products at Nationwide Building Society. “These latest rate cuts are great news for first time buyers and home movers, who will see the biggest benefit.”
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