Nationwide has reduced mortgage rates by up to 0.15% for first-time buyers, home movers and remortgage customers, bringing its lowest rate to 4.48%. The building society is cutting selected two, three and five-year fixed rates effective from Tuesday, August 18.
Rate reductions and cashback offers
First-time buyers will benefit from reductions of up to 0.10% on products up to 95% loan-to-value, plus £500 cashback. Home movers will see similar cuts of up to 0.10% across fixed rate products up to 95% LTV. Remortgage borrowers get the biggest reductions of up to 0.15% on products up to 90% LTV.
Industry reaction and warnings
Carlo Pileggi, Nationwide's head of mortgage products, said: "These latest changes bring our lowest mortgage rate back below 4.5% for new and existing borrowers moving home." The cuts follow Halifax's rate reductions last week, with brokers describing them as "a flicker of light". However, experts warn borrowers not to take continued reductions for granted given volatile swap rates.
Matt Coulson from Heron Financial cautioned that while the cuts are welcome, they come "after months of rates see-sawing" and could reverse quickly.
