Nationwide will be cutting rates by up to 0.36% across two, three and five-year fixed rate products, with its lowest rate now at 4.35%.
For first-time buyers, Nationwide has made reductions of up to 0.36% across two, three and five-year fixed rate products up to 95% LTV.
These include the five-year fixed rate at 90% LTV with a £999 fee, which is now 0.36% lower at 4.89% and the five-year fixed rate at 85% LTV with a £999 fee, which has been cut by 0.34% to 4.79%.
The first-time buyer two-year fixed rate at 85% LTV with a £999 fee has been lowered by 0.26% to 4.69% and the two-year fixed rate at 60% LTV with a £1,499 fee has been trimmed by 0.18% to 4.48%.
FTBs also receive £500 cashback when they complete their mortgage with Nationwide. In addition, FTBs and those moving home can also benefit from cashback of up to £500 if they purchase an energy-efficient property through Nationwide’s Green Reward.
Existing and new customers moving home will see reductions of up to 0.24% across two, three and five-year fixed rate products up to 95% LTV.
These include the two-year fixed rate at 60% LTV with a £1,499 fee, which has been cut by 0.15% to 4.35% and the five-year fixed rate at 60% LTV with a £999 fee, which is now 0.24% lower at 4.49%, among other cuts.
Remortgage products will be lowered by up to 0.24% across two, three and five-year fixed rate products up to 90% LTV.
These include the two-year fixed rate at 75% LTV with a £999 fee, which is 0.24% lower at 4.76% and the two-year fixed rate at 60% LTV with a £1,499 fee, cut by 0.22% to 4.63%.
In addition, the five-year fixed rate at 85% LTV with a £999 fee, a cut of 0.06% to is 4.94%.
Nationwide head of mortgage products Carlo Pileggi says: “We’re pleased to be cutting our mortgage rates once again, with the biggest reductions this time aimed at first-time buyers.”
“Some of our biggest rate cuts are being made on our higher loan-to-value mortgages, which will help those with smaller deposits to take their first step on to the property ladder. However, Nationwide remains an all-round lender and these rate cuts reflect our broader aim of supporting customers at every stage of homeownership.”
Meanwhile, Virgin has also announced rate cuts by as much as 0.26% on purchase and remortgage products.
For purchase products, two-year fixed rates will be lowered by up to 0.26%, while five-year fixed rates will be trimmed by as much as 0.24%.
Shared ownership purchase fixed rates will be cut by up to 0.26%.
The lender’s remortgage two-year fixed rates will be reduced by up to 0.24%, while five-year fixed rates will be cut by as much as 0.10%.
Elsewhere, NatWest is launching a two-year fixed rate at 4.49% and a five-year fixed rate at 4.67%.
Commenting on the rate cuts, Trinity Financial product and communications director Aaron Strutt says NatWest “just undercutting Santander’s new rates, which have gone live today”.
Strutt adds: “It is hard to predict exactly what will happen in the mortgage market over the short term due to the ongoing fluctuating funding costs.”
“Thankfully there are more lenders offering two-year fixes below 4.5% now and five-year fixes priced at 4.70% or slightly lower. The good news is that rates are reasonably priced again in general and the anticipated pricing hikes have not happened yet. HSBC is topping the mortgage best buy tables at the moment.”
