Nationwide has reduced mortgage rates by up to 0.12% across selected two-, three- and five-year fixed rate products with the new offers effective from today.
Nationwide’s new lowest lending rate now stands at 3.9%, with reductions also made for those remortgaging to the Society. Rates for existing customers switching, which are not changing, already start from 3.84%.
Those buying a property with at least a 40 per cent deposit will now be able to secure a two-year fixed rate at 3.9 per cent with a £1,499 fee.
For those purchasing property with a smaller deposit the rates are only slightly higher.
The cheapest two-year fixed rate for someone buying with a 25 per cent deposit is 4.04 per cent with a £999 fee, while the cheapest five-year fixed rate for someone buying with a 15% deposit is 4.29% with a £999 fee.
The lowest remortgage rates start from 3.92% for those prepared to fix for two years.
Carlo Pileggi, Nationwide’s Senior Manager – Mortgages, said: “These latest reductions will be welcome news for borrowers. We remain as committed as ever to supporting all areas of the market, whether it’s first-time buyers, home movers or those looking for a new deal, and with our reduced rates starting from 3.90%, we aim to be front of mind.”
Nationwide’s rate reductions go slightly against the wider trend in the market at the moment.
Several major lenders have increased their rates this week, including Halifax, Accord and Santander, owed in pact to the fact that financial markets are forecasting fewer Bank of England interest rate cuts over the rest of 2025, which is pushing up swap rates.
The bigger-than-expected inflation surge in April has prompted investors to bet on the Bank of England slowing its already gradual pace of interest rate cuts.
Water, gas and electricity prices all went up on 1 April along with a host of other bills, pushing inflation further above the Bank of England’s target of 2%.
Two interest rate cuts were expected this year, but some economists think April’s inflation figure means it is more likely there will be only one, and this could push up mortgage borrowing rates.
Peter Stimson, director of mortgages at the lender MPowered, commented: “We expected a jump, but what we got was a leap – in both headline and core inflation.
“The surge in inflationary pressure won’t just translate into a slowdown in base rate cuts. We’re in ‘handbrake on’ territory.
“The prospect of the Bank of England reducing its Base Rate again in June has shifted from slim to non-existent.”
“With Britain’s inflationary problem back with such vengeance, the odds on a Base Rate cut in August have lengthened too,” he added. “The path towards lower interest rates will be longer and slower than thought.”
Read the orginal article: https://propertyindustryeye.com/nationwide-cuts-mortgage-rates-while-other-lenders-increase-them/
