Nationally, Virgin and NatWest make rate cuts of up to 0.36% – Homebuying Strategy

Nationwide, rates will be reduced by up to 0.36% on two-, three- and five-year fixed-rate products, with the lowest rate now at 4.35%.

For first-time buyers, Nationwide has made a reduction of up to 0.36% on two-, three- and five-year fixed-rate products up to 95% LTV.

These include a five-year fixed rate at 90% LTV for £999, now down 0.36% to 4.89% and a five-year fixed rate at 85% LTV for £999, which has been reduced by 0.34% to 4.79%.

The first-time buyer two-year fixed rate at 85% LTV for £999 was cut by 0.26% to 4.69% and the two-year fixed rate at 60% LTV for £1,499 was cut by 0.18% to 4.48%.

FTBs also receive a £500 refund when they clear a national loan. In addition, FTBs and home movers can also benefit from up to £500 cash back when they buy an energy efficient property with the Nationwide Green Reward.

Existing and new home mover customers will see a discount of up to 0.24% on two, three and five year fixed rate products up to 95% LTV.

These include a two-year fixed rate at 60% LTV for £1,499, which has been reduced by 0.15% to 4.35% and a five-year fixed rate at 60% LTV for £999, now 0.24% lower at 4.49%, among other cuts.

Loan products will be reduced by up to 0.24% between two, three and five year fixed rate products up to 90% LTV.

These include a two-year fixed rate at 75% LTV for £999, down 0.24% to 4.76% and a two-year fixed rate at 60% LTV for £1,499, cut by 0.22% to 4.63%.

In addition, a five-year fixed rate at 85% LTV for £999, a reduction of 0.06% to 4.94%.

National head of mortgage products Carlo Pileggi says: “We’re delighted to be reducing mortgage rates again, with a big discount aimed at first-time buyers.”

“Some of our biggest rate cuts are on higher value mortgages, which will help those with a small deposit take their first step into property. However, National is still a mortgage lender and these rate cuts reflect our broader aim to support customers at all stages of home ownership.”

Meanwhile, Virgin also announced a price cut of around 0.26% on purchase and repeat purchase products.

For purchased products, the two-year fixed rate will be reduced to 0.26%, while the five-year fixed rate will be cut by about 0.24%.

Fixed rates for the purchase of shared ownership will be reduced to 0.26%.

The lender’s fixed rate for two-year mortgages will be reduced by up to 0.24%, while five-year fixed rates will be reduced by around 0.10%.

Elsewhere, NatWest is offering a two-year fixed rate of 4.49% and a five-year fixed rate of 4.67%.

Commenting on the rate cuts, Trinity Financial’s product and communications director Aaron Strutt says NatWest has “just dropped Santander’s new rates, which go live today”.

Strutt adds: “It is difficult to accurately predict what will happen in the mortgage market in the short term because of the ever-changing cost of finance.”

“Thankfully there are many lenders offering two-year fixes as low as 4.5% now and five-year fixes at 4.70% or slightly less. The good news is that rates are reasonable again and generally the expected rate hikes have not materialised. HSBC tops the best debt buy tables at the moment.”