Nationwide has introduced new rate reductions for both new and existing customers, including those remortgaging and first-time buyers. The lender is cutting rates by up to 0.36 percentage points across its fixed deals from Tuesday.
Significant Savings for Borrowers
For someone borrowing £300,000 over 25 years, the impact of these cuts could be substantial. A typical five-year fix reduced by 0.36 percentage points—for example from 5.25% to 4.89%—could cut monthly repayments by around £60. That equates to a saving of roughly £750 a year, or about £3,500 over a five-year deal. Even smaller reductions of around 0.20 percentage points could still shave about £30 a month off repayments, putting close to £1,800 back in borrowers’ pockets over a typical fixed term.
New Rates for First-Time Buyers
Nationwide, which has branches in Birmingham, said the new rates include:
- Five-year fixed rate at 90% LTV with a £999 fee: 4.89% (reduced by 0.36%)
- Five-year fixed rate at 85% LTV with a £999 fee: 4.79% (reduced by 0.34%)
- Two-year fixed rate at 85% LTV with a £999 fee: 4.69% (reduced by 0.26%)
- Two-year fixed rate at 60% LTV with a £1,499 fee: 4.48% (reduced by 0.18%)
Rates for Existing and New Customers Moving Home
- Two-year fixed rate at 60% LTV with a £1,499 fee: 4.35% (reduced by 0.15%)
- Five-year fixed rate at 60% LTV with a £999 fee: 4.49% (reduced by 0.24%)
- Five-year fixed rate at 75% LTV with a £999 fee: 4.59% (reduced by 0.19%)
- Two-year fixed rate at 90% LTV with a £999 fee: 4.89% (reduced by 0.20%)
Remortgage Rates
- Two-year fixed rate at 75% LTV with a £999 fee: 4.76% (reduced by 0.24%)
- Two-year fixed rate at 60% LTV with a £1,499 fee: 4.63% (reduced by 0.22%)
- Five-year fixed rate at 85% LTV with a £999 fee: 4.94% (reduced by 0.06%)
Carlo Pileggi, Nationwide’s Head of Mortgage Products, said: “We’re pleased to be cutting our mortgage rates once again, with the biggest reductions this time aimed at first-time buyers. Some of our biggest rate cuts are being made on our higher loan-to-value mortgages, which will help those with smaller deposits to take their first step on to the property ladder. However, Nationwide remains an all-round lender and these rate cuts reflect our broader aim of supporting customers at every stage of homeownership.”
