Nationwide has issued a new update for customers, cutting mortgage rates by up to 0.28% starting tomorrow, Tuesday, June 16. This move follows the peace agreement between Iran and the United States, which has been described as "welcome news for borrowers." However, experts caution that rates may not continue to fall.
Rate Reductions Across Fixed Products
The lowest rate on offer is 4.29%. Nationwide is reducing rates across its fixed mortgage range, including cuts of up to 0.20% on two, three, and five-year fixed products up to 95% Loan-to-Value (LTV) for first-time buyers. For remortgages, reductions of up to 0.28% apply to two, three, five, and ten-year fixed products up to 90% LTV. Existing and new customers moving home can benefit from cuts of up to 0.17% on two, three, five, and ten-year fixed products up to 95% LTV.
Industry Reactions
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, called the news positive but noted: "I would be careful about linking this reduction too directly to the Iran and US news of a peace deal. A lender of Nationwide’s size will usually have planned this repricing several days ago." He added that falling oil and energy prices could ease inflation pressure but warned against assuming rates will return to earlier levels.
Omer Mehmet, managing director of Trinity Finance, described the cuts as "fairly chunky" and said they create optimism for more reductions following the end of the Middle East war. Shaun Sturgess, director of Sturgess Mortgage Solutions, cautioned against complacency, noting that rate cuts were likely planned before the peace deal news and that rates can quickly reverse.
Justin Moy, managing director of EHF Mortgages, said lenders are passing on cheaper deals, with Swap rates looking more favorable. David Stirling, Independent Financial Adviser at Mint Wealth, highlighted the positive direction but reminded that the Bank of England meeting and inflation above target mean rates may not only go one way.
Darryl Dhoffer, founder of The Mortgage Geezer, urged borrowers to lock in deals quickly, saying: "Make hay while the sun shines – or while Donald Trump stays off the socials." He noted that Sonia Swap Rates reacted positively but warned that one tweet does not constitute a consistent trend.
