Residential  

Nationwide cuts rates across mortgage range

Nationwide cuts rates across mortgage range
 Credit: Jason Alden/Bloomberg

Nationwide has reduced rates on selected mortgages across its range by up to 0.20 percentage points.

The building society has cut fixed rates on first-time buyer, house purchase, remortgage and shared equity products.

For first-time buyers, rates have reduced by up to 0.10 percentage points on selected two- and five-year fixed rates, including a two-year deal at 90 per cent LTV from 3.24 per cent to 3.19 per cent, with a £999 fee.

House purchase products have seen the greatest reductions, also on selected two- and five-year fixed rates, of up to 0.20 percentage points.

Remortgage and shared equity products, meanwhile, have seen the smallest reductions of up to 0.05 percentage points.

Henry Jordan, director of mortgages at Nationwide, said: “As the country’s second largest mortgage lender, it’s important we demonstrate to all types of borrower that Nationwide continues to offer a wide range of mortgages with some of the most competitive rates on the market.

“That is why we’re making these latest reductions across a variety of LTVs as well as extending our £1,499 fee product to now make it available to first-time buyers and house purchase.”

Rates on selected two- and five-year remortgage products, such as a five-year deal at 60 per cent LTV, have been reduced from 1.39 per cent to 1.34 per cent, with a £999 fee, while on shared equity, its five-year fixed rate at 75 per cent LTV with no fee has been cut from 2.29 per cent to 2.24 per cent.

Rates on Nationwide’s ranges for existing customers moving home and taking out a further advance will continue to be aligned to the lowest rates offered to new customers, with reductions of up to 0.15 percentage points.

The building society is also launching a two-year fixed rate of 1.14 per cent at 60 per cent LTV. The product carries a £1,499 fee and is available for house purchase customers, first-time buyers and existing customers moving home.

David Hollingworth, associate director, communications at L&C Mortgages, commented: “These changes are a good reminder of just how competitive the mortgage market is at the moment. Nationwide has sharpened its pencil again to cut rates and introduce some new deals, which carry even lower rates but come up with a bigger fee.

“That’s always a balancing act for the borrower but makes sure that Nationwide has something in its kitbag to meet most requirements. The fixed rates are very competitive and positioned in the leading pack for many categories.”

chloe.cheung@ft.com

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