Nationwide Building Society, Britain's largest building society, is reducing rates across its fixed mortgage range for new and existing customers from Friday. The cuts affect two, three, five, and 10-year fixed-rate products, with reductions of up to 0.25 percentage points. Nationwide's lowest fixed rate now stands at 4.19%.
Details of Rate Reductions
The refreshed rates target first-time buyers, home movers, and those remortgaging or seeking a new deal. For first-time buyers with a 25% deposit, a three-year fixed-rate mortgage at 4.69% is available, reduced by 0.15 percentage points, with a £999 fee. Home movers with a 40% deposit can access a two-year fixed-rate deal at 4.19%, cut by 0.10 percentage points, with a £1,499 fee.
Industry Reaction
Nicholas Mendes, mortgage technical manager at John Charcol, commented: “Another round of cuts from Nationwide tells you more about the direction of travel than any single rate does.” He noted that swap rates, used by lenders to price mortgages, have fallen. Mendes added: “With these reductions spanning the first-time buyer, home mover, remortgage, and switcher ranges, this looks like a lender competing for volume across the whole market rather than chasing a single eye-catching headline, and when a lender of this size keeps moving others tend to feel the pressure to follow.”
Broader Market Trends
The Mortgage Works, part of Nationwide, is also cutting rates by up to 0.25 percentage points on selected one, two, and five-year fixed-rate products from Friday, affecting buy-to-let and limited company buy-to-let ranges for new customers. Other lenders that have recently announced mortgage rate cuts include HSBC UK, First Direct, Yorkshire Building Society, West Brom Building Society, and Skipton Building Society.
