Nationwide Building Society has announced a fresh round of mortgage rate reductions, with cuts of up to 0.36 percentage points for both new and existing customers. The lender is focusing its most aggressive reductions on first-time buyers, aiming to help those with smaller deposits take their first step onto the property ladder.
What the Rate Cuts Mean for Borrowers
For a typical £300,000 mortgage over 25 years, a five-year fixed rate reduced by 0.36 percentage points—for example from 5.25% to 4.89%—could lower monthly repayments by approximately £60. This translates to annual savings of around £750, or roughly £3,500 over the five-year deal. Even smaller reductions of 0.20 percentage points could save borrowers about £30 per month, totalling nearly £1,800 over a fixed term.
First-Time Buyers See Biggest Cuts
Nationwide is targeting its steepest rate reductions at those with smaller deposits. Key deals now include:
- Five-year fixed at 90% loan-to-value (LTV) at 4.89% (down 0.36%)
- Five-year fixed at 85% LTV at 4.79% (down 0.34%)
- Two-year fixed at 85% LTV at 4.69% (down 0.26%)
First-time buyers will also receive £500 cashback upon completion, with an additional £500 available through the Green Reward scheme for energy-efficient properties.
Rates Drop for Home Movers and Existing Customers
Home movers, including current Nationwide borrowers, benefit from reductions of up to 0.24 percentage points. Offers include:
- Two-year fixed at 60% LTV at 4.35%
- Five-year fixed at 60% LTV at 4.49%
- Five-year fixed at 75% LTV at 4.59%
The lender states this demonstrates its commitment to rewarding loyalty, ensuring existing customers are not disadvantaged when relocating.
Remortgage Borrowers Also Benefit
Those seeking to switch deals are included, with cuts of up to 0.24 percentage points. Examples include:
- Two-year fixed at 75% LTV at 4.76%
- Two-year fixed at 60% LTV at 4.63%
- Five-year fixed at 85% LTV at 4.94%
'Supporting Customers at Every Stage'
Carlo Pileggi, Nationwide's Head of Mortgage Products, said: "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."
