Nationwide Building Society is reducing rates on its switcher mortgage products by up to 0.35%.
Switcher products are available to Nationwide mortgage members coming to the end of their existing deal and looking for a new one.
Some of the reductions include a 5-year fixed rate at 60% LTV with a £999 fee, now at 5.24%, and a 2-year fixed rate at 60% LTV without a fee, now 5.99%.
Additionally, the Society is reducing its 2-year fixed rate at 60% LTV with a £999 fee by 0.30%, now at 5.79%, and its 5-year fixed rate at 80% LTV with a £999 fee, which is now 5.29%.
These latest changes continue the Society’s existing mortgage member pricing pledge, meaning Nationwide’s switcher products will be the same or lower than remortgage equivalents.
For those looking to borrow more, Nationwide is also reducing selected 2-, 3-, 5-year fixed rates on its additional borrowing range by up to 0.35%.
Henry Jordan, director of home at Nationwide Building Society, said: “With swap rates having fallen slightly in recent weeks, we have been able to reduce rates on our switcher range.
“These reductions demonstrate our continued efforts to support existing members who are coming to the end of their current deal.
“The new rates also reinforce our existing mortgage member pricing pledge whereby our switcher rates are the same or lower than our remortgage equivalents.”
Reaction:
Riz Malik, founder and director at R3 Mortgages:
“This week is shaping up to be a standout one in recent months, as Nationwide joins the ranks of mortgage lenders lowering selected rates.
“Despite the anticipated base rate hike next week, there seems to be a newfound tranquillity in the rate landscape.
“But the question remains: how much of this calm is seasonal versus an indication of improving market conditions? We will certainly find out in the weeks ahead.”
Craig Fish, director at Lodestone Mortgages & Protection:
“The jet stream hovering over the UK has been affecting the mortgage market as much as the weather, but it does seem to have shifted somewhat this week, and this latest lender to join the rate reduction party is warmly welcomed.
“We do need to be cautious, though, as the Monetary Policy Committee is certain to increase the base rate next week, and less than a week later inflation data is also released.
“Let’s hope that the headwinds remain calm and settled and that this is just the start of further decreases. I think it’s too early to call a rate war.”
Joe Thompson, podcast host at The HomeBuyer Club:
“In a market full of negativity, this is a brilliant boost.
“Does it signify the start of rate reductions overall?
“No, but I feel as though it will be seen as a positive for a lot of buyers and remortgage clients needing a mortgage.”
Rhys Schofield, brand director at Peak Mortgages and Protection:
“Lenders had priced in some pretty pessimistic worst-case scenarios over the last few months but after some significantly better than expected inflation numbers they aren’t under so much pressure to do so.
“It feels like the last few months rate rises went a bit far so expect more lenders to reprice lower over the coming weeks.”
Darryl Dhoffer, mortgage expert at The Mortgage Expert:
“Nationwide reducing fixed rates up to 0.35% and Tracker Rates 0.20% on Switcher and Additional Borrowing rates is positive for existing customers.
“No surprise they are being hesitant on new borrower deals, and, until we see what the Bank of England rate decision will be and the effect on subsequent inflation figures and SWAP rates, only then will we be able to see any trends on other lenders following suit.
“You can flip this the other way, with Nationwide planning to counter any reductions on rates by other lenders and placing themselves favourably for client retention.
“Their outlook might be client retention as opposed to attracting new business.”
Mike Staton, director at Staton Mortgages:
“It’s always been on the cards that rates will fall, what goes up surely must always come down.
“The main issue is how long will this last, this isn’t the first time we have seen a spate of reductions, and I won’t be holding my breath too long until the bumbling idiots in power decide to leave us all in suspense, creating panic and seeing another increase in rates.
“We still have some way to go before the market stabilizes, unfortunately, the last years seem to have been one step forward and two steps back on too many occasions.”
Lee Gathercole, co-founder at Rebus Financial Services:
“It’s been quite a positive week for mortgage interest rates and great to see a lender like Nationwide following suit.
“With inflation dropping more than anticipated I think we will see only a marginal increase in the Bank of England base rate next week and the likelihood of further rate increases beyond this drop severely this will be pleasing for most homeowners.”
Rohit Kohli, operations director at The Mortgage Stop:
“More welcome news this week from another major lender.
“Hopefully, this calms things down for the mortgage and property market.
“All eyes are now firmly on next Thursday’s meeting at Threadneedle Street but with inflation still high and the Bank of England bruising from heavy criticism that it was slow to act, I’m still expecting another rise next Thursday.
“These cuts this week are about following the swap rates, which have eased off from their peak just a few weeks ago but they are still predicting higher base rates than where we are today.”
Jamie Alexander, mortgage director at Alexander Southwell Mortgage Services:
“Lenders had factored in quite gloomy worst-case scenarios, but with recent inflation numbers surpassing expectations, they are no longer under such intense pressure to continue doing so.
“Given that the rate increases in recent months may have been slightly excessive, it is anticipated that more lenders will revise their rates downwards in the upcoming weeks. Fingers crossed.”
Ben Tadd, director at Lucra Mortgages:
“Yet another big player in the mortgage market slashing their rates is only a good thing for existing homeowners and prospective first-time buyers alike.
“However small a mini-rate war this is likely to be, it’s a rate war all the same. One the consumer market has been crying out for and will welcome with open arms.
“Lenders are likely to have already priced in any potential Base Rate rises to be announced next week, into their newly released product ranges over the last few days, so it’s unlikely there will be a knee-jerk reaction to hike these new rates back up again next week.”
