Nationwide Building Society has announced reductions of up to 0.28% across its fixed mortgage range, effective from Tuesday, June 16. The move follows the US and Iran agreeing a peace deal, described as "welcome news for borrowers," though experts caution that rates may not continue to fall.
Rate Cuts Across the Board
The lowest rate available is now 4.29%. Cuts include up to 0.20% on two, three and five-year fixed products up to 95% Loan-to-Value (LTV) for first-time buyers. Remortgage customers see reductions up to 0.28% on two, three, five and ten-year fixed products up to 90% LTV. Home movers benefit from cuts up to 0.17% on similar products up to 95% LTV.
Industry Reaction
Carlo Pileggi, Nationwide's head of mortgage products, said: "We're delighted to be cutting rates again as we look to put Nationwide at the forefront of borrowers' minds. These changes will support first-time buyers and home movers, as well as provide competitive options for those looking to remortgage."
Rohit Kohli, director of The Mortgage Stop, said the cuts were positive but cautioned against linking them directly to the peace deal. He noted that lenders typically plan repricing days in advance based on swap rates and funding costs. Omer Mehmet of Trinity Finance called the cuts "fairly chunky" and said they could create optimism for more reductions.
However, Shaun Sturgess of Sturgess Mortgage Solutions warned against complacency, stating that rates could turn quickly. Justin Moy of EHF Mortgages said the cuts were likely approved before the peace deal news, but swap rates are improving, enabling cheaper deals.
Broader Context
David Stirling of Mint Wealth noted that Nationwide joins NatWest, Halifax and Barclays in trimming rates this month, but with the Bank of England meeting Thursday and inflation above target, rates may not continue downward. Darryl Dhoffer of The Mortgage Geezer urged borrowers to lock in deals quickly, citing positive reactions in swap rates but warning against assuming consistent trends.
