From tomorrow, Tuesday 3 October, Nationwide Building Society will be reducing selected rates by up to 0.40%.
These rate changes include rates across its new business, switcher, additional borrowing and existing customers moving home product ranges.
The society has urged brokers wishing to reserve existing products to do so by 8pm today, Monday 2nd October.
Reaction:
Nicholas Mendes, mortgage technical manager at John Charcol:
“Nationwide is really laying down the gauntlet.
“Already offering market-leading rates at 60% & 75% loan-to-value (LTV), this latest reduction sees their higher LTV rates fall further, strengthening its hold in the market.
“It will be interesting to see if there is any movement from HSBC, Virgin Money or Coventry Building Society later this week.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“These cuts from Nationwide coming hot on the heels of reductions earlier today from TSB are yet more positive news for homeowners who continue to see a rate war sizzle despite some increases in swap rates over recent days.
“This was needed from Nationwide to bring their rates in line with competitors as they were starting to fall adrift.”
Craig Fish, director at Lodestone Mortgages & Protection:
“It’s good to see Nationwide joining the party to offer slightly more competitive rates, and at long last another lender is offering a sub 5% rate to those who want to remortgage, but this is way short of what the market needs before we see any real signs of the British public falling back in love with property.”
Justin Moy, managing director at EHF Mortgages
“Another good sign from Nationwide, who are trying to stimulate the mortgage market even though swap rates have crept up a little.
“This time Nationwide have concentrated on remortgages and existing borrowers, with a further sub-5% deal on offer for the 5-year fixed option.
“However, it looks like lenders have just about exhausted their options until we see more positive news on inflation.”
Steven Hargreaves, mortgage and protection adviser at The Mortgage Co:
“Fantastic news. Nationwide has always been in the top five lenders when sourcing, and with other lenders frantically reducing rates they were looking in trouble of finding themselves out of the top five.
“The headline looks impressive, up to 0.40% reductions.
“Hopefully, the rate war will stimulate the first-time buyer market, it will certainly give some relief to existing mortgage customers whose deals are due to come to an end in the next few months.”
Elliott Culley, director at Switch Mortgage Finance:
“Nothing eye-catching here as it is just an effort to keep pace with the lenders that have already reduced.
“I am still waiting for a lender to make a bolder statement, but they are understandably cautious in what has been an up-and-down year.
“However, more rates dropping improve the lending landscape and give clients a higher probability of securing a lower rate, so this will always be a positive.”
Ranald Mitchell, director at Charwin Private Clients:
“More tit-for-tat rate reductions as the bigger lenders keep easing mortgage rates downwards.
“Consumer confidence needs a lift to spur on the property market and get the wheels turning again.
“When will a lender champion the consumer cause, take the plunge and make meaningful cuts to stimulate borrower confidence?”
