Nationwide will offer sub-5% rates, hours after the Bank of England’s surprise move to hold the base rate.
The mutual says its rates on five- and ten-year fixed rates for first-time buyers and home movers will start at 4.94% from Friday (22 September).
It will also cut prices across the majority of fixed-rate products by up to 31 basis points – covering new business, existing customer moving home, switcher and additional borrowing loans.
The lender says for new customers moving home, a five-year fixed-rate deal at 75% loan to value, with a £999 fee will be 4.94%, down by 25bps.
It adds for FTBs, a five-year fixed-rate offer at 75% LTV, with a £999 fee will be 4.94%, down by 31bps.
At noon today, the BoE’s Monetary Policy Committee released its decision to hold the base rate at 5.25%, in a narrow 5 to 4 vote, following the last rise on 3 August.
Many economists expected a further 0.25% hike before the committee would consider how it previous 14 consecutive rate rises were feeding through the economy, as it battles inflation.
The cost of living unexpectedly slowed to 6.7% in the 12 months to August yesterday – down slightly from 6.8% in July.
Nationwide Building Society director of home Henry Jordan says: “The fall in swap rates over recent weeks and following the announcement that bank Rate is being held at its current level means that we are able to make further rate cuts across the majority of our fixed rate mortgage range.
“These latest changes mean we’re now offering sub-five per cent rates to borrowers whether they are buying their first home or moving to their next.”
John Charcol mortgage technical manager Nicholas Mendes adds: “Nationwide has reacted quickly following today’s announcement to make further fixed-rate reductions this week.
“The last reduction came last week so seeing another repricing of their products so quickly is welcomed news.
“It will be interesting to see if we see other lenders follow suit and push ahead by the end of the week.”
Last week, the mutual’s buy-to-let arm, The Mortgage Works, was among the first major lenders to bring sub-5% home loans back to the market.
