Nationwide Building Society will cut rates across selected fixed-term and tracker products by up to 45 basis points and its switcher and additional borrowing range by up to 25bps on Friday (25 March).  

Brokers welcomed the cuts, which came as the Bank of England lifted the base rate by 25bps to 4.25%.  

The mutual says its remortgage reductions of up to 45bps across two-, three- and five-year fixed and two-year tracker rate products up to 90% loan to value include:  

• Two-year fixed rate at 60% LTV with no fee is now 4.49% (reduced by 0.45%)  
• Five-year fixed rate at 60% LTV with a £999 fee is now 3.94% (reduced by 0.25%)  
• Five-year fixed rate at 75% LTV with a £999 fee is now 3.99% (reduced by 0.35%)  
• Two-year fixed rate at 80% LTV with a £999 fee is now 4.59% (reduced by 0.25%)  

First-time buyers reductions of up to 35bps across selected two-, three- and five-year fixed-rate deals and two-year tracker products up to 95% LTV include:  

• Three-year fixed rate at 60% LTV with a £999 fee is now 4.34% (reduced by 0.35%)  
• Three-year fixed rate at 90% LTV with a £999 fee is now 4.89% (reduced by 0.30%)  
• Five-year fixed rate at 60% LTV with a £999 fee is now 4.04% (reduced by 0.20%)  

New customers moving home reductions of up to 35bps across selected two-, three- and five-year fixed-rate loans and two-year tracker rate products up to 90% LTV, include:  

• Five-year fixed rate at 75% LTV with no fee is now 4.14% (reduced by 0.35%)  
• Three-year fixed rate at 90% LTV with a £999 fee is now 4.79% (reduced by 0.30%)  
• Two-year fixed rate at 75% LTV with a £999 fee is now 4.44% (reduced by 0.25%)  

Mint FS director Matthew Jackson says: “This is very big news. In the mortgage world, whatever Nationwide does, other lenders will follow.   

“So, despite the Bank of England increasing the base rate today, this move by Nationwide will kick off a raft of rate reductions as lenders compete to secure business towards their 2023 lending targets.”  

Lodestone Mortgages & Protection director Craig Fish adds: £These reductions are great news, and in some cases are going to outweigh the increase that we saw on Thursday.   

“This is a real statement and, hopefully, more lenders will follow. They could have issued these rates before the Bank of England decision but waited until afterwards to increase the impact.”  

The lender says brokers can reserve a product by submitting a decision in principle, without lodging a full mortgage application.  

Existing products must be reserved by 8pm on 23 March.