Nationwide has cut its mortgage rates by up to 0.25% in what brokers describe as a "welcome boost" for borrowers, with predictions that more reductions will follow in the coming weeks. From Friday, June 26, the building society is lowering selected fixed rates across its first-time buyer, home mover, existing customer moving home, remortgage, switcher, and additional borrowing product ranges.
Rate reductions across key products
Nationwide's two-year fixed rate drops from 4.29% to 4.19%, and its three-year fixed rate falls from 4.49% to 4.44%. Five-year fixes now start from 4.31%. This move follows a previous trim of up to 0.28% early last week. The Mortgage Works has also cut its new business mortgage rates by up to 0.25%.
Brokers welcome the cuts
Manooch Suree, director of Uxbridge-based Zinga Financial Services, said: "Nationwide cutting selected fixed rates by up to 0.25% is a welcome boost for buyers and homeowners. With markets still reacting to inflation, interest rate expectations and global economic news, lender pricing can move quickly. If you're buying, moving or remortgaging, it's worth reviewing your options now."
Omer Mehmet, managing director of Welling-based Trinity Finance, added: "With the oil price returning to pre-war levels, there is a sense of optimism in the air after a turbulent few months. When major lenders like Nationwide cut rates, others tend to follow."
Further reductions anticipated
Michelle Lawson, director of Fareham-based Lawson Financial, said: "Temperatures aren't the only things hotting up. Nationwide is reducing its rates further to tempt borrowers off the beach. As markets stabilise we will see some more of this in the coming weeks."
However, Justin Moy, managing director of Chelmsford-based EHF Mortgages, cautioned: "Welcome news from Nationwide and others who have recently cut rates, as swaps have melted in the heat this week, allowing lenders to pass on these savings. As always, the recommendation is to pick up a new deal as soon as possible, as the Middle East conflict can flare up at any time, and a change of prime minister can cause market jitters as well."
Urgency for borrowers
Rohit Kohli, director of Romsey-based The Mortgage Stop, urged borrowers to act now: "It's 36C outside and mortgage rates are coming down. This is about as good as it gets in the UK – which is precisely why borrowers should be acting now, not waiting to see what happens next. We're getting a new prime minister. The Iran conflict is ceasefire on paper, knife-edge in practice. The market is moving in the right direction today – but any of those factors could change the picture within weeks."
David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth, said: "Nationwide is cutting fixed rates by up to 0.25% from tomorrow – and while that might not sound like cause for celebration – it is part of a broader repricing across the market. Swap rates are falling in anticipation of further Bank of England cuts. Fixed rates are priced on where money is going, not where it is today. If your fixed rate deal is ending soon, now is the time to act."
Outlook and market response
Aaron Strutt, product and communications director at London-based Trinity Financial, expressed hope that other lenders would follow: "Nationwide has just announced that it is lowering its rates again after its last set of price cuts on June 16. The bigger lenders are improving their rates more frequently at the moment, which is good news for home buyers and the lender's existing mortgage customers. These rates are still not as low as the best trackers starting from 3.96% but they seem to be getting closer every few days with all of these rate cuts."
