Nationwide Building Society has announced a reduction of up to 0.25% on selected fixed mortgage rates, a move described as a "welcome boost" for borrowers. The changes take effect from Friday, 26 June.
Rate Reductions Across Multiple Products
The cuts apply to a range of products, including first-time buyer, home mover, existing customers moving home, remortgage, switcher, and additional borrowing ranges. Specifically, Nationwide’s two-year fix drops from 4.29% to 4.19%, the three-year fix from 4.49% to 4.44%, and five-year fixes now start from 4.31%. This follows a previous cut of up to 0.28% earlier in June.
Broader Market Context
The Mortgage Works is also reducing its new business mortgage rates by up to 0.25%. Brokers advise borrowers to lock in deals now due to potential economic instability, including the Iran-US ceasefire uncertainty and the anticipated change in prime minister from Keir Starmer to Andy Burnham.
Manooch Suree, Director at Uxbridge-based Zinga Financial Services, commented: "Nationwide cutting selected fixed rates by up to 0.25% is a welcome boost for buyers and homeowners. With markets still reacting to inflation, interest rate expectations and global economic news, lender pricing can move quickly. If you’re buying, moving or remortgaging, it’s worth reviewing your options now. Overall any reduction is good news for the current housing market and wider economy."
Aaron Strutt, Product and Communications Director at London-based Trinity Financial, added: "Nationwide has just announced that it is lowering its rates again after its last set of price cuts on the 16th June. The bigger lenders are improving their rates more frequently at the moment, which is good news for home buyers and the lender's existing mortgage customers. Nationwide already had the cheapest two- and five-year fixes but the lender is lowering its prices again hot on the heels of Barclays which dropped its rates twice in the space of a few days. Hopefully a few other big lenders will do the same thing soon. These rates are still not as low as the best trackers starting from 3.96% but they seem to be getting closer every few days with all of these rate cuts. A change of prime minister is expected to bring more economic instability – but hopefully it doesn't hit the mortgage market."
