Nationwide cuts mortgage interest rates by up to 0.7%

Nationwide Building Society is cutting rates across its fixed and tracker mortgage range by up to 0.7 percentage points from tomorrow. 

First-time buyers will see the biggest reductions across a range of Nationwide’s two, three and five-year fixed mortgages and two-year trackers.

A five-year fixed rate with a 5 per cent deposit and no fee will be available at a rate of 5.09 per cent, having been reduced by 0.7 per cent. 

Mortgages: Nationwide is cutting rates across its fixed and tracker range

The same mortgage with a £999 fee will be available at a rate of 4.99 per cent, having been trimmed by 0.6 per cent.      

Remortgaging products for those with deposits of at least 10 per cent are also being cut by up to 0.19 per cent across two, three and five-year fixed rates, and two-year trackers.

For anyone looking to remortgage their property, the biggest rate reduction is to a five-year fix for those with a 40 per cent deposit, at 3.99 per cent and with a £999 fee.

This is one of the lowest rates on the market, beaten only by Virgin Money’s recently-announced five-year fix at 3.95 per cent. 

New customers moving home can benefit from reductions of up to 0.55 per cent, Nationwide said. Highlights include a five-year fix with a 5 per cent deposit, available at a rate of 4.99 per cent with a £999 fee.

For existing members moving home, Nationwide is also cutting rates by up to 0.55 per cent on two, three and five-year fixed and two-year tracker rates.

Nationwide is also trimming rates on selected switcher products by up to 0.41 per cent, with interest rates starting from 3.94 per cent.

The building society said: ‘This continues the society’s existing mortgage member pricing pledge, meaning Nationwide’s switcher products will be the same or lower than remortgage equivalents.’

And, for anyone wanting to borrow more, Nationwide is reducing a number of two, three and five-year fixed and two-year tracker rates on its additional borrowing range by up to 0.41 per cent.

The rate on green additional borrowing is also being reduced by 0.24 per cent, with a rate of 3.94 per cent starting tomorrow.

Henry Jordan, director of home at Nationwide Building Society, said: ‘These latest changes mean we will have reduced rates for the fourth time this year and now have a sub-four per cent rate for those looking to remortgage and a sub-five per cent rate for first-time buyers. 

‘In a continually moving market, we always aim to remain competitive across the board for first-time buyers, home movers and those looking to remortgage.

‘We have also reduced rates on our switcher range to support those coming to the end of their existing deal. 

‘With switcher rates now starting at 3.94 per cent, these latest reductions ensure we maintain our existing mortgage member pricing pledge, meaning our switcher products will be the same or lower than our equivalent remortgage rates.’

Any first-time buyer, remortgaging customer or new home mover should take a look at the fresh rates and see how they compare with ones available from other providers. 

>> Check the latest rates using This is Money’s mortgage finder 

The mini-Budget in September sent mortgage rates soaring, but they have since started to ease. 

Earlier this month Virgin Money launched a five-year fixed remortgage deal at 3.95 per cent, undercutting HSBC which brought out a 3.99 per cent deal the day before.

Virgin is also offering a five-year fixed deal at 3.99 per cent for house purchases. 

HSBC cut its rate for those remortgaging with a 40 per cent stake by 0.3 percentage points down to 3.99 per cent with a £999 fee. 

The number of mortgage products on the market surpassed 4,000 for the first time since August last year this month, according to recent data from Moneyfacts. 

This month, the Bank of England hiked increased interest rates by 0.5 percentage points to a 14-year high of 4 per cent.

But forecasts predict inflation has peaked, with the Bank indicating this may be its last consecutive increase.

UK price inflation fell for the third month in a row to 10.1 per cent in the year to January, down from 10.5 per cent in December, figures published by the Office for National Statistics today revealed.