Nationwide Building Society has announced a reduction in its fixed-term mortgage rates, effective from 24 July 2024.
This makes Nationwide the first major high street lender to offer a 5-year fixed-rate mortgage below 4%. The rate cuts, up to 0.25 percentage points, apply across 2, 3, and 5-year fixed-rate products.
For new customers moving home, the 5-year fixed rate at 60% LTV with a £1,499 fee is now 3.99%, while the same rate with a £999 fee is 4.04%. First-time buyers will see the 5-year fixed rate at 85% LTV with a £999 fee reduced to 4.55%.
For remortgagers, the 5-year fixed rate at 60% LTV with a £1,499 fee is now 4.27%, and the 2-year fixed rate at 75% LTV with a £999 fee is 4.79%.
Nationwide is also reducing selected 2, 3, and 5-year switcher rates up to 95% LTV by up to 0.25%, with rates starting from 4.24%. These changes continue Nationwide’s pricing pledge, ensuring all switcher product rates are the same or lower than remortgage equivalents.
Existing customers moving home will see rate reductions of up to 0.23% on selected fixed-rate products up to 95% LTV. Rates for additional borrowing on 2, 3, and 5-year fixed products up to 90% LTV are also being cut by up to 0.25%. Selected 2-year tracker products will see a rate increase of up to 0.15%.
Henry Jordan, director of home at Nationwide, said: “These latest rate cuts and the reintroduction of a sub-4% product further reinforce our position as one of the most competitive lenders in the market.
“We’ve made rate reductions across our fixed rate mortgage range because, as the country’s largest mutual, we want to maintain our support for all types of borrowers through attractively priced products, whether it be home movers, first-time buyers or those looking to remortgage or switch their deal.”
Reaction
Nicholas Mendes, mortgage technical manager, John Charcol:
“Nationwide is the first lender to finally breach the 4% benchmark following recent weeks of downward repricing. This is fantastic news for borrowers and signifies a significant change in the mortgage landscape after recent months of increased rates.
“This rate is for purchases only. Those remortgaging will need to wait a bit longer before we see rates below 4% as well.
“We will likely see the likes of HSBC look to reprice again to ensure they remain ahead of the pack, potentially resulting in another quick reprice from them.
“Lenders have been busy competitively repricing against each other over the last fortnight, with purchase rates significantly lower than remortgage rates. Purchase rates are highly competitive compared to market pricing. Expect the biggest future reductions to be in remortgage rates, as they still have room to decrease, and any significant reductions are expected in this area.”
