Nationwide is set to implement what it describes as its "biggest" change for three groups of customers, with significant reductions in mortgage rates. The building society, which operates branches in Birmingham, has announced cuts of up to 0.36 percentage points across its first-time buyer, home mover, and remortgage ranges.
New Rates Effective Tomorrow
The new rates come into effect from tomorrow, Tuesday 12 May. Nationwide’s lowest rate now stands at 4.35% for both new and existing customers looking to move home. This reduction applies across two, three, and five-year fixed rate products.
Support for First-Time Buyers
First-time buyers will receive £500 cashback upon completing their mortgage with Nationwide. Additionally, those purchasing an energy-efficient property can benefit from up to £500 cashback through Nationwide’s Green Reward scheme. The biggest rate cuts are targeted at higher loan-to-value (LTV) mortgages, assisting those with smaller deposits.
Home Movers and Remortgagers
Existing and new customers moving home will see reductions of up to 0.24% across two, three, and five-year fixed rate products up to 95% LTV. Remortgage customers will also benefit from cuts of up to 0.24% across similar products up to 90% LTV.
Examples of reduced rates include a two-year fixed rate at 75% LTV with a £999 fee now at 4.76% (reduced by 0.24%), a two-year fixed at 60% LTV with a £1,499 fee at 4.63% (down 0.22%), and a five-year fixed at 85% LTV with a £999 fee at 4.94% (reduced by 0.06%).
Company Statement
Carlo Pileggi, Nationwide’s Head of Mortgage Products, said: “We’re pleased to be cutting our mortgage rates once again, with the biggest reductions this time aimed at first-time buyers. Some of our biggest rate cuts are being made on our higher loan-to-value mortgages, which will help those with smaller deposits to take their first step on to the property ladder. However, Nationwide remains an all-round lender and these rate cuts reflect our broader aim of supporting customers at every stage of homeownership.”
