Nationwide Building Society confirms major cut to mortgage rates

Nationwide is lowering its fixed mortgage rates by as much as 0.16 percentage points. The reductions will apply to two, three and five-year fixed rate products for first-time buyers, home movers, remortgage customers and those switching deals.

Following these cuts, the lender’s most competitive rate drops to 3.54 per cent, available to both new and existing customers looking to purchase a new property.

The changes span products with loan-to-value ratios reaching up to 95 per cent, offering improved terms across the building society’s entire fixed rate mortgage portfolio.

Those stepping onto the property ladder stand to gain significantly from these adjustments. First-time buyers can access a three-year fixed rate at 90 per cent LTV with a £999 fee now priced at 4.40 per cent, reflecting a 0.16 percentage point reduction.

A two-year fixed option at the same LTV carries a rate of 4.10 per cent with a £999 fee, while borrowers with larger deposits can secure 3.67 per cent on a two-year fix at 60 per cent LTV, though this requires a £1,499 fee.

Beyond the rate reductions, first-time buyers completing their mortgage with Nationwide receive £500 cashback.

Additional cashback of up to £500 is available through the Green Reward scheme when purchasing energy-efficient homes.

Customers moving home benefit from similarly attractive terms. The lowest rate of 3.54 per cent applies to a two-year fixed product at 60 per cent LTV with a £1,499 fee, representing a 0.15 percentage point cut.

Those with 85 per cent LTV can secure a five-year fix at 3.94 per cent with a £1,499 fee, or opt for a two-year deal at 3.78 per cent carrying a £999 fee.

Nationwide maintains its commitment to treating existing customers equally, ensuring home movers receive rates matching or bettering those offered to new borrowers.

Remortgage customers also see improvements, with a three-year fix at 60 per cent LTV now available at 3.80 per cent with a £999 fee.

Five-year fixed rates at 80 per cent LTV sit at 4.04 per cent.

Existing Nationwide customers approaching the end of their current deal can take advantage of switcher rates, with a three-year fix at 80 per cent LTV now priced at 4.05 per cent with a £999 fee following an 0.11 percentage point reduction.

A five-year fixed option at the same LTV stands at 3.99 per cent with a £999 fee. The building society’s pricing pledge guarantees that switcher products will always match or undercut equivalent remortgage rates.

Carlo Pileggi, Nationwide’s Head of Mortgage Products, said: “We review our mortgage rates on an ongoing basis to ensure they are sustainable and competitive for customers. These latest rate cuts are great news for first-time buyers and home movers, who will see the biggest benefit.”

Full list of changes:

First-time buyers (cuts of up to 0.16 per cent, products up to 95 per cent LTV):

• Three-year fixed at 90 per cent LTV, £999 fee → 4.40 per cent (down 0.16 per cent)
• Two-year fixed at 90 per cent LTV, £999 fee → 4.10 per cent (down 0.14 per cent)
• Two-year fixed at 60 per cent LTV, £1,499 fee → 3.67 per cent (down 0.15 per cent)
• £500 cashback on completion
• Extra cashback of up to £500 available through the Green Reward for energy-efficient homes

Existing and new customers moving home (cuts of up to 0.15 per cent, products up to 95 per cent LTV):

• Two-year fixed at 60 per cent LTV, £1,499 fee → 3.54 per cent (down 0.15 per cent)
• Five-year fixed at 85 per cent LTV, £1,499 fee → 3.94 per cent (down 0.15 per cent)
• Two-year fixed at 85 per cent LTV, £999 fee → 3.78 per cent (down 0.09 per cent)

Remortgage customers (cuts of up to 0.15 per cent, products up to 90 per cent LTV):

• Three-year fixed at 60 per cent LTV, £999 fee → 3.80 per cent (down 0.15 per cent)
• Five-year fixed at 80 per cent LTV, £999 fee → 4.04 per cent (down 0.10 per cent)

Switcher deals for existing customers (cuts of up to 0.11 per cent, products up to 90 per cent LTV):

• Three-year fixed at 80 per cent LTV, £999 fee → 4.05 per cent (down 0.11 per cent)
• Five-year fixed at 80 per cent LTV, £999 fee → 3.99 per cent (down 0.06 per cent)