Nationwide has confirmed a reduction in its switcher mortgage rates for existing customers by up to 0.12%. The new rates, covering two, five, and ten-year fixed-rate products, take effect today. Switcher rates, designed for existing Nationwide customers nearing the end of their current mortgage deal, now start from 4.56%.
New Rate Details
The updated rates include a two-year fixed rate at 60% loan-to-value (LTV) with a £999 fee, reduced by 0.03% to 4.56%. A five-year fixed rate at 60% LTV with a £999 fee is now 4.59%, down by 0.10%. Another five-year fixed rate at 75% LTV with no fee is set at 4.83%, reduced by 0.12%.
Nationwide's Statement
Carlo Pileggi, Nationwide’s Head of Mortgage Products, said: “We’re making these latest rate cuts to support existing customers as they come to the end of their current deal. Together with our pricing pledge – ensuring switcher rates will be the same or lower than the remortgage equivalents – it reflects our commitment to helping our customers secure the best possible rate on a new mortgage deal.”
Expert Criticism
Speaking to Newspage, Darryl Dhoffer, Founder at Bedford-based The Mortgage Geezer, criticised the announcement. He added: “Nationwide is tearing up the track with a jaw dropping rate cut of up to... 0.12 percentage points. If you qualify for that 60% LTV two-year fix, you can bask in a monolithic 0.03% reduction. On a £200,000 mortgage, this staggering corporate reduction saves you a fiver a month. Try not to spend that £60 a year all at once. Nationwide claims this 'reflects our commitment'. Nothing says 'we've got your back' quite like shaving pennies off a 4.56% rate while keeping a £999 fee firmly in place. It’s like tipping a waiter a pound and expecting a standing ovation.”
Manooch Suree, Director at Uxbridge-based Zinga Financial Services, added: “Nationwide’s latest cuts are another sign that competition in the mortgage market remains firmly focused on existing borrowers. While the reductions are modest, they will be welcomed by homeowners coming off higher fixed rates and looking to secure certainty over the next two or five years. The key message for borrowers is not to leave it until the last minute, reviewing options early with all the options available in the market can make a meaningful difference to monthly payments and overall borrowing costs.”
