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Nationwide Cuts Fixed Mortgage Rates Ahead of Bank of England Decision

Easing swap rates from falling oil prices have given lenders scope to trim deals ahead of the Bank of England's policy announcement.

Overview

  • Nationwide reduced fixed mortgage rates by up to 0.28 percentage points, effective Tuesday, June 16, bringing its cheapest deal to about 4.29%.
  • Several major high‑street lenders including HSBC, NatWest and Santander have trimmed selected fixed‑rate products in recent weeks as swap rates softened after reports of progress between the US and Iran and lower oil prices.
  • Fixed‑rate mortgages are priced off swap rates and lenders' funding costs, so product moves reflect market yields and expectations for the Bank Rate rather than only headline policy statements.
  • Moneyfacts calculates a 0.25 percentage‑point rise in the Bank Rate would add roughly £450 a year to repayments on a typical £250,000 mortgage, and consumer groups say about 1.8 million homeowners due to remortgage this year should review options now.
  • Analysts caution the cuts were likely planned before recent geopolitical news and could be reversed if the Bank of England hikes this Thursday, so borrowers should compare headline rates, fees and eligibility before locking in a deal.