Nationwide will lower rates across its range of fixed-rate mortgages, bringing its lowest rate to 4.29%.
Cuts to support for first-time buyers, home movers and borrowers will come into force tomorrow.
The latest changes will see rates cut by up to 0.28 percentage points on two-, three-, five- and 10-year fixed rate products.
First-time purchase rates will be reduced by up to 0.20% on two-, three- and five-year fixed rate products up to 95% LTV. These include a five-year fixed rate at 90% LTV without cash, which will be reduced by 0.20% to 4.89% and a five-year fixed rate at 85% LTV with cash of £999, which will decrease by 0.12% to 4.67%.
First-time buyers will also receive £500 cashback when they settle their mortgage. First-time buyers and home movers can also benefit from up to £500 in cashback if they buy an energy-efficient property through the lender’s green reward scheme.
In addition, loan rates will be reduced by up to 0.28% on fixed rate products for two, three, five and 10 years up to 90% LTV. The rate cut sees a two-year fixed rate at 60% LTV without cash, down 0.28% to 4.83%, a two-year fixed rate at 85% LTV with £999 cash, reduced by 0.15% to 4.89% and a five-year fixed rate at 60% LTV with 90% down with a £90 down payment. 4.64%.
This follows the reductions Zwe Lokke made last week to its range of replacement homes for existing customers coming to the end of their housing contracts.
The latest changes continue the promise of affordable rates for the Whole Home customer that is in place across the country, meaning that all replacement product rates will be the same or lower than remortgage rates.
Existing and new customers submitting home product rates will receive a cut of approximately 0.17% on two, three, five and 10 year fixed rate products up to 95% LTV.
These cuts include a two-year fixed rate at 90% LTV with no payment, now down 0.17% to 4.99% and a five-year fixed rate at 90% LTV for £999, which has been reduced by 0.10% to 4.74%.
National head of mortgage products Carlo Pileggi says: “We are pleased to reduce rates again as we look to put the whole country at the forefront of borrowers’ minds.
Commenting further, Trinity Financial’s director of product and communications Aaron Strutt says National has made “an unusual move to limit itself with these recent rate changes as the construction community is already at the top of many best buy tables”.
“I think this shows how much the lender is willing to attract more customers and issue more loans at a time when many banks and building societies would prefer the property market to be busy.”
“The lender will have the cheapest two-year market rate of 4.29% and the lowest five-year rate of 4.34% for both mortgages between £300,000 and £5 million. These rates have a planning fee of £1,499 and applicants need a 40% deposit to qualify.”
“Across the country there have already been a number of competitive price fixing schemes and it is clearly looking to cement its place at the top of the best buy tables to ensure it is one of the first borrowers look at when looking for a cheap mortgage. It’s good to see a price reduction to come.”
