Major Lenders Announce Welcome Rate Reductions
In a move set to provide relief to borrowers across the United Kingdom, Nationwide Building Society and Virgin Money have announced they are cutting selected mortgage rates. This development comes directly after Chancellor Rachel Reeves delivered the government's Autumn Budget yesterday, signalling a positive shift for the housing market.
Details of the Mortgage Rate Cuts
From tomorrow, Nationwide is implementing reductions of up to 0.19% on selected fixed-rate products. These cuts are comprehensive, applying to a wide range of their offerings including:
- First Time Buyer products
- Home Mover products
- Existing Customers Moving Home
- Remortgage products
- Switcher and Additional Borrowing ranges
Not to be left behind, Virgin Money has simultaneously revealed it is also cutting selected rates by up to 0.19%.
Industry Experts Hail a "Significant" Move
The announcements have been met with optimism from mortgage and finance professionals, who see this as a crucial step in revitalising the property market.
Omer Mehmet, Managing Director at Welling-based Trinity Finance, commented, "Businesses may have been hammered in yesterday's Budget, but for borrowers the outcome appears relatively positive." He noted that while SWAP rates have been volatile, these cuts indicate that lenders are keen to get the market moving. He added, "It's been a quiet couple of months... but when a lender like Nationwide makes its move, others often follow."
Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, said the cuts would be a relief to working families. "After a grim day for households yesterday, finally some good news," she stated. "These cuts, especially those from Nationwide, could see other lenders follow suit, which will benefit borrowers at a time when every penny counts. This will give some people a little extra breathing room."
Echoing the sentiment, Jack Tutton, Director at Fareham-based SJ Mortgages, described the reductions as "significant". He said, "Nationwide and Virgin are first out of the blocks to make changes to their rates following yesterday's Budget. After a day of increases in taxes and less money in our pockets down the line, these lenders have continued the trend that we have seen more recently by making further reductions... Both lenders have made significant reductions to try and help all forms of mortgage holders, from first-time buyers through to existing customers."
