Nationwide is cutting rates by up to 0.15% across its fixed mortgage range, supporting first-time buyers, home movers and people remortgaging, effective tomorrow (4 November).
The latest changes means Nationwide’s lowest rate now stands at 4.89%.
The new rates include reductions to first-time buyer products by as much as 0.15% across two-, three- and five-year fixed rate products up to 95% LTV.
The two-year fixed rate at 85% LTV with no fee has been lowered by 0.10% to 5.48% and the two-year fixed rate at 60% LTV with a £999 fee has been cut by 0.15% to 5.06%.
Existing and new customers moving home will see reductions of up to 0.13% across two-, three- and five-year fixed rate products up to 95% LTV.
These include the five-year fixed rate at 60% LTV with a £1,499 fee, which has been reduced by 0.12% to 4.89%, the two-year fixed rate at 90% LTV with a £999 fee, down by 0.11% to 5.25% and the five-year fixed rate at 75% LTV with no fee, which has been trimmed by 0.13% to 5.16%.
For remortgage customers, Nationwide has lowered prices by up to 0.12% across two-, three- and five-year fixed rate products up to 75% LTV.
These include the two-year fixed rate at 60% LTV with a £999 fee, down by 0.10% to 4.99% and the three-year fixed rate at 60% LTV with no fee, which has been lowered by 0.12% to 5.34%.
In addition, rates on a small number of two-year tracker mortgages at 80% LTV and above will increase by up to 0.10%.
Nationwide head of mortgage products Carlo Pileggi says: “Current market conditions are giving us the opportunity to reduce fixed mortgage rates across our range. We’re making cuts across the range to support all types of borrowers, whether they’re buying their first home, moving home or looking to remortgage.”
Commenting on the cuts from Nationwide, John Charcol mortgage technical manager Nick Mendes says: “Nationwide cutting rates by up to 0.15 percentage points across its fixed range, on the same day that Halifax and Barclays introduced cuts of up to 0.22 and 0.30 percentage points, shows the biggest lenders are competing hard for business.”
“Three of the largest lenders reducing rates within days of the Budget puts pressure on the rest of the market to follow.”
“These cuts come just two days before the Bank of England is expected to raise interest rates on Thursday. Lenders price fixed rates on swap rates, and five-year swaps are at 4.62%, little changed from a month ago, so a rate rise this week is already reflected in fixed rate pricing.”
“Cutting rates ahead of an expected increase shows lenders are confident in their pricing and willing to trim margins to stay competitive.”
Mendes adds: “Nationwide is also increasing rates on some two-year trackers at 80% loan to value and above by up to 0.10 percentage points, which shows lenders are preparing for Bank Rate to rise.”
“How far rates fall from here depends on what the Bank of England says this week. Swap rates rose by around 0.05 percentage points today ahead of the decision, and markets are pricing in more rate rises than are likely to be needed, so a more cautious message from the Bank could give lenders room for further cuts.”
Meanwhile, The Mortgage Works is expanding its limited company buy-to-let range with the introduction of new fixed and tracker products for new and existing customers.
For new landlord customers, TMW is introducing a two-year tracker at 4.49%, available up to 75% LTV with a 2% fee and free valuation.
Also launching for new landlord customers will be a two-year tracker at 4.99%, available up to 75% LTV with a £1,495 fee and free valuation and a five-year fixed rate at 5.09%, available up to 75% LTV with a 5% fee and free valuation.
All three products are available for purchase, remortgage and further advance.
The lender is also reducing the rate on the limited company five-year fixed product by 0.02% to 5.20%. The product is available up to 75% LTV with a 3% fee and free valuation.
For existing limited company customers, TMW is also introducing two new two-year tracker options, both available up to 75% LTV. These include a rate of 4.99% with a £1,495 fee and a rate of 5.29% with no fee.
TMW lead manager Keir Fraser says: “By introducing new fixed and tracker products, we’re giving limited company landlords greater choice, whether they are looking for the certainty of a fixed rate or the flexibility of a tracker.”
