Nationwide has cut mortgage rates by up to 0.81% and is offering a deal worth 3.84% - the lowest level on offer from the lender in eight months.
The building society has joined a long line of lenders which have made cuts to mortgage prices in 2024 and are offering headline rates below 4%.
Nationwide’s offering, which becomes effective tomorrow (Wednesday 24 January) includes the 3.84% deal – which is for additional borrowing.
But it also has, as part of its new pricing, a five-year fixed rate for home buyers with a 40% deposit at 3.85%. It comes with a £1,499 and is a new product.
It has also reduced its five-year fixed rate for remortgagers with 40% equity or more to 3.88%. This comes with a £999 fee.
The building society has repriced a number of it’s deals and the exact price which will apply to borrowers depends upon several factors – including how much equity or deposit they have and the length of the mortgage deal.
It’s best to speak to your mortgage broker to find out more. If you are in the middle of a remortgage or purchase application with Nationwide, you may be able to benefit from the new pricing – so speak to your adviser.
Nationwide’s repricing announcement has been long awaited. It comes after all the other big six lenders announced cuts in 2024 and just a day after Barclays cut rates again by up to 0.6%.
But it also comes on the same day Santander announced it was making slight increases to some fixed rate mortgages.
Katy Eatenton, mortgage & protection specialist at Lifetime Wealth Management, speaking via the Newspage agency, said: “We’ve been waiting for this announcement and they haven’t disappointed.
“Great rate reductions from Nationwide and this will put them in pole position on the lending starting grid. It also squashes any doubt in the market after Santander announced increases today.”
Meanwhile, Darryl Dhoffer of The Mortgage Expert, also via the Newspage agency, said Nationwide’s rate cuts were highly competitive.
“The old saying, save the best until last,” he said. “Nationwide finally join the Big Six Lender table with rate reductions, and across the board.
“A quick check shows they now lead the march on all rates from 60% to 95% LTV. While SWAP rates are having a wobble, it would appear Nationwide have taken off the stabilisers with these decreases. Let’s hope they hold these rates for as long as they can.”
