Nationwide has announced a reduction in selected fixed mortgage rates by up to 0.25%, effective from Friday, June 26. The move affects rates across first-time buyer, home mover, existing customers moving home, remortgage, switcher, and additional borrowing product ranges.
Rate Reductions Detail
The building society's two-year fix drops from 4.29% to 4.19%, while the three-year fix falls from 4.49% to 4.44%. Five-year fixes now start from 4.31%. This follows a previous cut of up to 0.28% earlier in the week. The Mortgage Works has also reduced its new business mortgage rates by up to 0.25%.
Brokers Welcome the Cuts
Manooch Suree, director of Zinga Financial Services, called it a "welcome boost for buyers and homeowners." He added: "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 Trinity Finance, noted: "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."
Michelle Lawson, director of Lawson Financial, anticipated further reductions: "As markets stabilise we will see some more of this in the coming weeks."
Calls for Urgency Amid Uncertainty
Justin Moy, managing director of EHF Mortgages, urged borrowers to act quickly: "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."
Rohit Kohli, director of The Mortgage Stop, emphasised: "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." He cited potential instability from a new prime minister and the fragile Iran-US ceasefire.
David Stirling, independent financial adviser at Mint Wealth, said: "If your fixed rate deal is ending soon, now is the time to act." Aaron Strutt, product and communications director at Trinity Financial, hoped other lenders would follow, noting that Nationwide already had the cheapest two- and five-year fixes.
