Nationwide Building Society has announced it will be slashing the rates of its mortgage products by up to 0.40 percent.
These changes will be implemented as of Wednesday, August 23 and come amid a series of constant hikes to the base rate from the Bank of England.
As it stands, the UK’s base rate is at 5.25 percent and has been raised to this degree to mitigate the impact of inflation on the economy.
While savers have been able to benefit from interest rates going up, those who are borrowing have seen their repayments skyrocket, particularly mortgage holders.
However, financial institutions such as Nationwide are cutting mortgage rates to better support homeowners at this challenging time.
Don’t miss… Fixed energy deals trap warning as bill payers may get better deal if they wait
New customers
For new customers moving into a home, rates are being slashed by up to 0.40 percent over two, three and five-year fixed products up to 95 percent LTV.
Here is a breakdown of the mortgage rate changes for brand-new Nationwide customers buying property:
Five-year fixed rate at 60 percent LTV with no fee is now 5.39 percent
Three-year fixed rate at 75 percent LTV with a £999 fee is now 5.89 percent
Two-year fixed rate at 60 percent LTV with a £999 fee is now 5.94 percent.
First-time buyers
Homebuyers getting on the property ladder for the first time will see mortgage rates reduced by 0.35 percent across two, three and five-year products up to 95 percent LTV.
Here is a breakdown of the mortgage rate changes for first-time homebuyers with Nationwide Building Society:
- Five-year fixed rate at 60 percent LTV with no fee is now 5.44 percent
- Two-year fixed rate at 75 percent LTV with a £999 fee is now 6.04 percent
- Three-year fixed rate at 60 percent LTV with a £999 fee is now 5.94 percent.
Don’t miss…
Remortgage
Those choosing to remortgage their home are being awarded a rate reduction of up to 0.15 percent across the building society’s products of up to 90 percent LTV.
Here is a breakdown of the rate changes for Nationwide customers looking to remortgage their home:
Five-year fixed rate at 60 percent LTV with a £999 fee is now 5.49 percent
Two-year fixed rate at 75 percent LTV with no fee is now 6.39 percent
Three-year fixed rate at 90 percent LTV with no fee is now 6.30 percent.
On top of this, the building society is reducing selected two, three and five-year fixed rates for existing customers moving home by up to 0.40 percent.
Furthermore, Nationwide’s switcher and additional borrowing rates will be cut by 0.10 percent for customers.
Henry Jordan, the director of Home at Nationwide Building Society, broke down why these cuts are important amid a time of soaring interest rates.
He explained:: “As economic conditions continue to stabilise, we are able to make further cuts to our mortgage rates, building on the reductions we have made in recent weeks.”
