Nationwide has announced a further reduction in rates across its fixed-rate mortgage range, with cuts of up to 0.15 percentage points on two, three, and five-year products. The building society, which has branches in Birmingham, said its lowest rate now stands at 4.48%, benefiting first-time buyers, home movers, and those remortgaging.
Rate cuts across the fixed range
The latest changes apply to a range of fixed-rate products and follow a similar round of cuts made at the beginning of August. Nationwide’s head of mortgage products, Carlo Pileggi, said: “We’re pleased to announce a further set of rate cuts across our fixed mortgage range, building on the cuts we made at the beginning of August.
“These latest changes bring our lowest mortgage rate back below 4.5 per cent for new and existing borrowers moving home, whilst also maintaining our support for first-time buyers with smaller deposits and those remortgaging.”
Industry reaction to the move
The decision has been welcomed by mortgage industry figures, who see it as a positive sign for the market. Thomas Boughton, founder at London-based Artillium Real Estate Finance, said: “Nationwide reducing rates is an encouraging sign to kick off the week, following a number of lenders who made similar moves last week.
“Lenders are seemingly becoming more agile with their pricing, making reductions at a faster pace than they have historically following increases, which is another encouraging sign.”
Matt Coulson, founder at Rickmansworth-based Heron Financial, added: “A 0.15% cut from Nationwide, hot on the heels of Halifax, is welcome and it helps at the margin. It's also small, and it comes after months of rates see-sawing.
“Only a few weeks ago the cuts we'd seen were wiped out almost overnight when the Middle East pushed swap rates up. So one or two lenders trimming is as much about them competing for business as it is a sign the whole market has turned.”
Swap rates and future outlook
Coulson noted that the current reductions are driven by swap rates rather than the Bank of England, and that these can reverse quickly. He said: “The genuine turning point comes when inflation is clearly beaten and Threadneedle Street starts cutting with conviction, and we're not there yet.
“The Bank held last month, some of its own members wanted rates higher, and inflation's expected to climb again by year end. Encouraging, then, but I wouldn't call the all-clear on the back of it.”
Andrew Montlake, CEO at London-based Coreco, added: “Homebuyers and those waiting to remortgage will be relieved to see a new wave of rate cuts filtering through the mortgage market, though how long this will last depends very much on global factors and conflicts.
“The capricious nature of swap rates has meant lenders have had to reprice both upwards and downwards more times than they would usually like to, but that does not mean that there is not an effective mortgage market. Taking the time to get advice now is paramount to help wade through the mortgage mist.”
