The price cuts, which will see up to 0.25% shaved off rates from Friday 28 February, are likely to get the ball rolling for more mortgage rate reductions in coming weeks, mortgage brokers are predicting.
Nationwide said its new prices will be available to borrowers who are looking for remortgages or who are buying a home. Plus, there are new prices for first-time buyers.
The eye-catching 3.99% rate will most likely stand out to borrowers – but they should be aware this is only available to those with 40% equity and who are willing to fix their rate for five years.
For those switching from an existing Nationwide mortgage there is a £999 fee on this new deal and for those who are new to the building society the fee is £1,499.
Carlo Pileggi, Nationwide’s senior manager – mortgages, said: “Our third set of rate cuts in three weeks should come as great news for borrowers.
“We remain as committed as ever to supporting all segments of the market, including those buying their first home or moving to their next, and with our switcher and remortgage rates starting from 3.99%, we aim to be front of mind for those looking for a new deal too.”
It comes just after TSB announced it was cutting prices by up to 0.25% and following several big lenders reducing rates last week.
Mortgage brokers think this could signal more cuts could follow.
Jamie Elvin, director at Strive Mortgages, speaking via the Newspage agency, said: “With lenders jostling for market share and the cost of funds falling, further reductions look likely, especially as the month-end approaches and banks push to meet lending targets.
“Competition is clearly ramping up, and borrowers could be in for even better deals in the weeks ahead. This isn’t just a one-off adjustment, it’s a sign that rates may have further to fall.”
