Overview
- Nationwide announced on Monday that new mortgage rates take effect from Tuesday 7 July and include cuts of up to 0.19 percentage points on two-, three-, five- and ten-year fixed deals and up to 0.12 points on selected two-year trackers.
- The reductions apply across borrower types and loan-to-value bands, benefiting first-time buyers, home movers, remortgagers and existing customers switching deals, with products offered up to 95% LTV and published examples such as a two-year 90% LTV remortgage at 4.99% and a five-year 95% LTV first-time buyer deal at 5.08%.
- Nationwide reiterated its pricing pledge that existing customers switching to a new deal will continue to receive rates that match or beat equivalent remortgage products, and first-time buyers qualify for £500 cashback plus up to £500 through a Green Reward for energy-efficient homes.
- Brokers welcomed the move as evidence lenders are competing for borrowers and said further cuts from other banks are likely if swap rates remain low, but they warned that geopolitical events, domestic politics and Bank of England actions could quickly reverse the trend.
- The cuts form part of a wider re-pricing across the sector by lenders such as NatWest, Barclays, TSB, Santander and Yorkshire Building Society, and reflect easing funding costs driven by softer swap yields and expectations that Bank Rate will stay steady for now.