Britain’s biggest building society is cutting rates across its fixed mortgage range for new and existing customers from Friday, with many other lenders having also announced cuts in recent days.
Nationwide Building Society’s refreshed rates are aimed at first-time buyers, home movers and people remortgaging or looking for a new deal.
Rates will be reduced by up to 0.25 percentage points across two, three, five and 10-year fixed-rate products, with Nationwide’s lowest fixed rate standing at 4.19%.
Nationwide’s new range includes a three-year fixed-rate mortgage aimed at first-time buyers with a 25% deposit at 4.69%, reduced by 0.15 percentage points. The mortgage has a £999 fee.
A two-year fixed-rate home mover deal will be offered to borrowers with a 40% deposit at 4.19%, reduced by 0.10 percentage points. The mortgage has a £1,499 fee.
Nicholas Mendes, mortgage technical manager at John Charcol, said: “Another round of cuts from Nationwide tells you more about the direction of travel than any single rate does.”
He said swap rates, which are used by lenders to price mortgages, have fallen.
Mr Mendes added: “With these reductions spanning the first-time buyer, home mover, remortgage, and switcher ranges, this looks like a lender competing for volume across the whole market rather than chasing a single eye-catching headline, and when a lender of this size keeps moving others tend to feel the pressure to follow.”
The Mortgage Works, which is part of Nationwide Building Society, is also cutting rates by up to 0.25 percentage points on selected one, two and five-year fixed-rate products on Friday.
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The rate reductions, for new customers, will be across The Mortgage Works’s buy-to-let and limited company buy-to-let ranges.
Other lenders to have made mortgage rate cuts in recent days include HSBC UK, First Direct, Yorkshire Building Society, West Brom Building Society and Skipton Building Society.