Nationwide Building Society is cutting by up to 19 basis points tomorrow.

The lender’s latest round of reductions apply across its first-time buyer, home mover and remortgage ranges with its lowest fixed rate falling to 4.52%.

The move has been welcomed by brokers as it follows weeks of rate increases across the market in response to higher swap rates.

For first-time buyers, a two-year fixed at 95% LTV with a £999 fee will fall by 19bps to 5.25%, a three-year fixed at 60% LTV with a £999 fee will drop by 15bps to 4.69 and a two-year fixed at 90% LTV with a £999 fee will reduce by 10bps to 4.88%.

For new and existing customers moving home, a two-year fixed at 95% LTV with a £999 fee will fall by 19bps to 5.25% and a three-year fixed at 80% LTV with a £999 fee will drop by 15bps to 4.84%.

Remortgage rates will reduce by up to 13bps across selected two, three- and five-year fixed products up to 95% LTV. 

The mutual says its existing mortgage customer pricing pledge remains in place, meaning switcher rates for existing customers will continue to be the same as or lower than equivalent remortgage products.

Nationwide head of mortgage products Carlo Pileggi says: “After a period of increasing swap rates, recent falls have created an opportunity for us to reduce mortgage rates, and we’re moving swiftly to ensure new and existing customers can benefit.

“These rate cuts will benefit a wide range of customers – first-time buyers, new and existing customers moving home as well as those remortgaging to Nationwide.”

Trinity Financial product and communications director Aaron Strutt says: “After a few weeks of mortgage rate hikes across the lenders Nationwide has announced some pricing improvements. 

“Nationwide has clearly been busy given the size of the previous rate hikes that pushed them out of the best buy tables. 

“Hopefully a few more lenders will lower rates again and we can reverse the scale of the price rises we have seen recently.

“On Friday afternoon Gen H sent a message to brokers saying after last week’s swap rate spike, things have ‘turned right round’ meaning the lender could lower rates by up to 40bps.”

John Charcol mortgage technical manager Nicholas Mendes says: “This comes after several weeks of increases from major lenders through July.

“The explanation sits with swaps, despite the Bank of England’s hold announcement last week.

“Swaps spiked when the Middle East conflict flared up in July, then pushed higher still into month end, with two-year SONIA touching 4.220% on 31 July and five-year reaching 4.313%.

“Both have since drifted back, to 4.139% and 4.227% respectively, though that’s only a partial retreat rather than a return to where things stood at the start of July, when two-year swaps were closer to 3.925%.

“Nationwide has a track record of being quick off the mark when swaps move downward, repricing accordingly to support borrowers with lower rates.”