Nationwide Building Society has announced a significant reduction in its mortgage rates, providing relief to borrowers amidst a series of interest rate hikes. The move comes as the Bank of England has continuously raised the base rate in response to inflation concerns.
Key Changes and Implementation Date
Effective from Wednesday, August 23, the building society is implementing rate cuts of up to 0.40 percent across its mortgage products. The aim is to alleviate the burden on borrowers, particularly mortgage holders, who have experienced steep repayment increases due to rising interest rates.
Supporting Homeowners in Challenging Times
Nationwide is taking proactive measures to support homeowners during these challenging economic conditions. The reduction in mortgage rates is aimed at assisting both new customers and existing homeowners seeking to remortgage or move.
- For new customers, rates on two, three, and five-year fixed products up to 95 percent Loan-to-Value (LTV) are being lowered by up to 0.40 percent.
- The five-year fixed rate at 60 percent Loan-to-Value (LTV), without any fee, has been adjusted to 5.39 percent.
- For the three-year fixed rate at 75 percent LTV, accompanied by a fee of £999, the new rate stands at 5.89 percent.
- The two-year fixed rate at 60 percent LTV, also with a £999 fee, is now 5.94 percent.
First-time buyers entering the property market will see a reduction of 0.35 percent across two, three, and five-year products up to 95 percent LTV.
- The five-year fixed rate at 60 percent Loan-to-Value (LTV), without any fee, has been revised to 5.44 percent.
- The two-year fixed rate at 75 percent LTV, subject to a fee of £999, has now been adjusted to 6.04 percent.
- Similarly, the three-year fixed rate at 60 percent LTV, along with a £999 fee, now stands at 5.94 percent.
Remortgagers are also set to benefit, with rate cuts of up to 0.15 percent on products up to 90 percent LTV.
- The five-year fixed rate at 60 percent Loan-to-Value (LTV), accompanied by a fee of £999, has been revised to 5.49 percent.
- The two-year fixed rate at 75 percent LTV, with no associated fee, has now been modified to 6.39 percent.
- For the three-year fixed rate at 90 percent LTV, with no fee, the new rate is 6.30 percent.
Additional Support for Existing Customers
Furthermore, in addition to the aforementioned adjustments, the financial institution is implementing rate reductions on specific two, three, and five-year fixed rates for current customers who are in the process of relocating their residences. These rate cuts will amount to a maximum decrease of 0.40 percent.
Moreover, Nationwide’s switcher and additional borrowing rates will undergo a decrease of 0.10 percent to provide enhanced financial benefits to their clientele.
Insight from Nationwide’s Director
Henry Jordan, the director of Home at Nationwide Building Society, emphasized the significance of these rate cuts in the current environment. He stated, “As economic conditions continue to stabilize, we are able to make further cuts to our mortgage rates, building on the reductions we have made in recent weeks.”