Nationwide is reducing rates across its fixed and tracker mortgage range, effective from tomorrow, Friday 24 March. The announcement was made today, on the same day the Bank of England increased the Base rate to 4.25 percent, up 0.25 percentage points.
Nationwide has made reductions that will benefit all customers including those who need to remortgage, first time buyers and new customers moving home.
Henry Jordan, director of home at Nationwide Building Society, said: “We regularly review our mortgage rates and these latest cuts are being made across both our fixed and tracker products, meaning all types of borrowers could benefit, whether they are buying their first home, moving to their next or looking to remortgage.”
The building society has made remortgage reductions of up to 0.45 percent across two, three and five-year fixed and two-year tracker rate products up to 90 percent Loan-to-Value (LTV).
The products include:
- Two-year fixed rate at 60 percent LTV with no fee is now 4.49 percent (reduced by 0.45 percent)
- Five-year fixed rate at 60 percent LTV with a £999 fee is now 3.94 percent (reduced by 0.25 percent)
- Five-year fixed rate at 75 percent LTV with a £999 fee is now 3.99 percent (reduced by 0.35 percent)
- Two-year fixed rate at 80 percent LTV with a £999 fee is now 4.59 percent (reduced by 0.25 percent)
READ MORE: The Apprentice star shares ‘biggest lesson’ from Lord Sugar as she’s set to turnover £3m
Nationwide is also reducing rates on selected switcher products by up to 0.25 percent with rates starting from 3.94 percent.
This continues the Society’s existing mortgage member pricing pledge, meaning Nationwide’s switcher products will be the same or lower than remortgage equivalents.
The building society has also extended the reductions to benefit first-time buyers.
There are reductions of up to 0.35 percent across selected two, three and five-year fixed and two-year tracker products up to nine percent LTV, including:
- Three-year fixed rate at 60 percent LTV with a £999 fee is now 4.34 percent (reduced by 0.35 percent)
- Three-year fixed rate at 90 percent LTV with a £999 fee is now 4.89percent (reduced by 0.30 percent)
- Five-year fixed rate at 60 percent LTV with a £999 fee is now 4.04 percent (reduced by 0.20 percent)
Shared equity rates up to 80 percent LTV are also being reduced by up to 0.30 percent.
For those looking to borrow more, Nationwide is also reducing selected two, three and five-year fixed and two-year tracker rates on its additional borrowing range by up to 0.25 percent, while the rate on Green Additional Borrowing is also being reduced by 0.10 percent with the rate now 3.94 percent.
Full details of all rates included in these latest changes can be found on the Nationwide website.
Following an unexpected increase in inflation, which saw the rate rise from 10.1 percent to 10.4 percent in the year to February 2023, the Bank of England has increased its Base Rate to 4.25 percent.
The change will have an immediate impact on some borrowers, particularly those with variable and tracker mortgages.
As tracker mortgages generally base interest rates on the Bank of England Base Rate, those on these deals will see their payments increase.
Data from UK Finance in January 2023, the trade body for mortgage lenders, shows that roughly 715,000 households are currently on tracker mortgages.
With the Base Rate rising to 4.25 percent, research by TotallyMoney shows the average UK property costing £270,708 on a variable rate and with a 75 percent Loan To Value (LTV) will see monthly mortgage repayments increase by £26. Compared to December 2021, repayments could be £456 more each month.
For a £150,000 property, this would represent an additional £18 per month or a cumulative increase of £345 in monthly repayments.
For a £400,000 property, this would represent an additional £48 on people’s monthly repayments, or a cumulative increase of £919 since December 2021.
