Existing Nationwide borrowers switching deal will see their biggest saving on a fee-free two-year fixed rate at 80% LTV, down by 16bps to 4.98%. Nationwide said its pricing pledge for existing customers remains in place, meaning switcher rates will continue to match or undercut equivalent remortgage products.
First-time buyers taking a five-year fixed rate at 60% LTV with a £999 fee will see the sharpest cut, falling by 19bps to 4.37%. First-time buyers completing a mortgage with Nationwide continue to receive £500 cashback, with a further £500 available to first-time buyers and home movers who purchase an energy-efficient property under the lender’s Green Reward scheme.
Borrowers moving home, whether new or existing Nationwide customers, will see reductions of up to 15bps, with the largest cut applied to a three-year fixed rate at 95% LTV with a £999 fee, down to 5.16%. Nationwide said existing customers moving home continue to be offered rates matching or below those available to new borrowers on equivalent products.
Nationwide’s latest repricing comes as several other lenders trim rates ahead of the new week. Virgin Money has cut its two-year fixed remortgage rate by up to 16bps, while BM Solutions and Halifax are both reducing rates by up to 15bps on their core ranges from today. Halifax is also applying a further 20bps discount for Lloyds Premier customers.
“The big story in the swap market is that one-to-five-year SONIA swaps are now all sitting below 4%, with two-year at 3.913% and five-year at 3.999%, down from 4.159% and 4.176% respectively in early June,” said Nicholas Mendes (pictured right), mortgage technical manager at London broker John Charcol. “That’s a hugely positive signal for the market. Sub-4% funding across the short and medium end gives lenders genuine room to compete for business, and today’s cuts of 0.10% to 0.19% show exactly that playing out, with arguably a little more to come if swaps hold at these levels.