"This move by the Nationwide will kick off a raft of rate reductions as lenders compete to secure business towards their 2023 lending targets."
Following yesterday's Bank of England base rate decision, Nationwide for Intermediaries is reducing selected fixed and tracker rates by up to 0.45%.
Highlights include a two-year fixed rate remortgage product at 60% LTV, down by 0.45% to 4.49% with no fees.
Five-year fixed rate remortgage products have also reduced by 25bps to 3.94% at 60% LTV and by 35bps to 3.99% at 75% LTV, both with a £999 fee.
Nationwide is also reducing rates on selected switcher products by up to 0.25% with rates starting from 3.94%. This continues the Society’s existing mortgage member pricing pledge, meaning Nationwide’s switcher products will be the same or lower than remortgage equivalents.
First-time buyers can benefit from reductions of up to 0.35% across selected two, three and five-year fixed and two-year tracker products up to 95% LTV.
Three-year fixed rates are now available from 4.34% at 60% LTV and 4.89% at 90% LTV, both with a £999 fee.
Nationwide’s first-time buyer mortgages also come with £500 cashback, while those looking to remortgage to the Society can choose between £500 cashback or free standard legal fees.
For new and existing customers moving home Nationwide has cut rates by up to 0.35% across selected two, three and five-year fixed and two-year tracker rate products up to 90% LTV. Shared equity rates up to 80% LTV are also being reduced by up to 0.30%.
For those looking to borrow more, Nationwide is also reducing selected two, three and five-year fixed and two-year tracker rates on its additional borrowing range by up to 0.25%, while the rate on green additional borrowing has been reduced by 0.10% with the rate now 3.94%.
Henry Jordan, director of home at Nationwide Building Society, said: “We regularly review our mortgage rates and these latest cuts are being made across both our fixed and tracker products, meaning all types of borrowers could benefit, whether they are buying their first home, moving to their next or looking to remortgage.”
Matthew Jackson, director at Mint FS, commented: "This is very big news. In the mortgage world, whatever Nationwide does, other lenders will follow. So despite the Bank of England increasing the base rate, this move by the Nationwide will kick off a raft of rate reductions as lenders compete to secure business towards their 2023 lending targets. This is great news for consumers."
Gary Boakes, director at Verve Financial, added: "Nationwide receives its funding weekly unlike most banks that are monthly, so they are able to react quickly when swap rates drop. So if Nationwide are dropping rates it is usually a good sign that other lenders will soon follow over the next few weeks.
"It is also so positive and bold that they did this on the day the base rate rose again. It was them coming out with a big statement for borrowers, saying look it is not all doom and gloom that the base rate increased."
