Nationwide Building Society is reducing rates on selected fixed mortgage products by up to 0.29%.
The new rates will be effective from tomorrow, Wednesday 13 September 2023.
For new customers moving home, there will be reductions of up to 0.29% across 2- and 3-year fixed products up to 95% LTV, including a 3-year fixed rate at 60% loan-to-value (LTV) with a £999 fee at 5.64%, and a 2-year fixed rate at 95% LTV with a £999 fee at 6.44%.
In its first-time buyer range, Nationwide is also introducing reductions of up to 0.25% across selected products up to 95% LTV, including a 3-year fixed rate at 75% LTV with no fee at 5.94% and a 2-year fixed rate at 60% LTV with a £999 fee at 5.89%.
Remortgage products will also benefit from reductions of up to 0.18%, including a 3-year fixed rate at 75% LTV with no fee at 6.09% and a 2-year fixed rate at 60% LTV with no fee at 6.14%.
Nationwide is also reducing switcher, additional borrowing and rates for existing customers moving home by up to 0.14%.
Henry Jordan, director of home at Nationwide Building Society, said: “Swap rates continue to fall, allowing us to make further reductions to our mortgages rates.
“These changes demonstrate our continued efforts to support existing members who are coming to the end of their current deal and new customers looking to take a mortgage with the Society.”
Reaction:
Rob Gill, managing director at Altura Mortgage Finance:
“These cuts look increasingly like the opening salvos in a full-on mortgage price war, as lenders seek to make up for lost business.
“We’re edging ever closer to fixed rates starting with a ‘4’, which in turn could see the recovery of the property market as purchase borrowers re-enter the market.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“More rate cuts from Nationwide BS are another step in the right direction, and with swaps and gilts falling during the past few weeks, hopefully, this will continue, with other lenders following suit either this week or next.
“Lenders are doing all they can to try and bolster demand after the wind has been taken out of the sails of the property party everyone has enjoyed for the past two years.”
Gary Bush, financial adviser at MortgageShop.com:
“More rate cuts from lenders is fantastic news. Despite the house price indices showing a property market under pressure, things are now starting to feel more upbeat.
“Mortgage pricing underpins sentiment.”
Darryl Dhoffer, mortgage expert at The Mortgage Expert:
“Lenders are filling their mortgage trolleys with as much business as possible, while they can, and this just shows the extent mortgage applications must be affecting business levels for lenders.
“Rates have been “popping” across the board more than a breakdancer at present.
“Long may it continue, but I can see the dark clouds of sticky inflation rearing their head again later this month, which may halt further reductions in coming months.”
Justin Moy, managing director at EHF Mortgages:
“More rate reductions from a number of mortgage lenders sends out plenty of positivity to both borrowers and brokers.
“This is a full range of changes, plus a number of new mortgage products that can only be seen as improved confidence in the market.
“As more lenders will inevitably follow the lead of Nationwide and Santander, let’s hope we see sub-5% products very soon.”
Ranald Mitchell, director at Charwin Private Clients:
“More rate reductions from prominent lenders continue to push the rate war towards the sub-5% mark.
“The question remains, with a likely base rate increase on September 21st, what will happen next?”
