Nationwide Building Society has reduced rates on its like-for-like remortgage products.

The lender will now apply a stress rate of 1 per cent above its standard mortgage rate, which is 4.24 per cent. Prior to this Nationwide would apply 3 per cent above its standard mortggae rate.

The change only applies to borrowers remortgaging without any further borrowing.

In order to be eligible, borrowers can only remortgage up to their existing mortgage value, according to the lender.

Nationwide adds that product fees can be added, however, early repayment charges cannot.

Nationwide Building Society director of mortgages Henry Jordan says: “Affordability can be a barrier to better mortgage rates, even when applicants are able to demonstrate a clean payment history.

“This change improves access to our competitively priced remortgage products for such borrowers, whilst maintaining a prudent, responsible approach to affordability assessment.”

SimplyBiz Mortgages chief executive Martin Reynolds adds: “The issues that many borrowers have faced when looking to remortgage without additional borrowing has been a source of frustration within the Intermediary market for a while. The stress rates used seem excessive versus where the money market see long term swaps.

“It is really positive to see one of the main high street lenders move their stress rate to a more realistic figure. I am sure that this will be a seen as a positive move with both Intermediaries and their clients.”