NATIONWIDE is making further rate cuts across its fixed rate mortgage range, and also cutting rates on selected tracker mortgage products, the lender announced today.
Brokers said if swap rates remain favourable, more lenders are likely to review their pricing, with one adding “lenders are clearly back in competition mode”.
Nationwide mortgage rates will be reduced by up to 0.19% across two, three, five and ten-year fixed rate products, while rates will be cut by up to 0.12% on selected two-year tracker products.
The new rates are effective from tomorrow, Tuesday 7 July, and will apply across first-time buyer, home mover, remortgage and switcher products.
Carlo Pileggi, Nationwide’s Head of Mortgage Products, said the lender is committed to supporting all types of borrowers.
He added: “The changes we’re making tomorrow will ensure we remain competitive and continue to be front of mind for brokers and customers alike in a fast-moving mortgage market.”
Brokers welcomed the news. Shaun Sturgess, Director at Swansea-based Sturgess Mortgage Solutions, said “this is a fantastic start to the week and may well set the tone for more cuts in the days and weeks ahead”.
He added: “Rates are still not what they were before the Middle East war but they’re moving in the right direction and momentum is starting to grow.”
Tracey Dixon, Owner at Cardiff-based Pure Mortgage and Protection, said: “The lowest rate doesn’t always mean the best mortgage, but more competition almost always benefits borrowers.
“Nationwide’s latest rate cuts are encouraging and reflect the increasingly competitive mortgage market. If swap rates remain favourable, I’d expect other lenders to review their pricing, too.
“The key message for borrowers is not to assume their existing lender has the best deal, but to review the whole market before making a decision.”
Rupert Collingwood, Founder at property consultancy, The London Broker, said: “In today’s market, any shift like this should be considered a win for the property market.
“We must of course hope and pray that the change of leadership within the Labour Party, the country and indeed the new face in No. 11 does not end up frightening the horses, unpicking this sort of positive movement for buyers and sellers alike.”
Harry Goodliffe, Director at Winchester-based HTG Mortgages, commented: “Mortgage lenders are clearly back in competition mode.
“Falling swap rates have given lenders more room to adjust their pricing, and Nationwide is making the most of it. I don’t think it will be the last lender to cut rates, either.
“As long as swap rates remain relatively stable and there are no nasty inflation surprises, I’d expect this gradual pattern of rate reductions to continue, at least in the short term.”
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, added: “This is the second set of rate cuts in just over a week for Nationwide, further underlying the improvement in the Middle East conflict and improving competitiveness among high street lenders in particular.
“Borrowers are slowly feeling confident to buy or remortgage as rates move towards the sub-4% deals pricing from earlier this year.”
Meanwhile, Katy Eatenton, Mortgage & Protection Specialist at Weybridge-based Eatenton Finance, said “the big lenders are now starting to make their moves.
“As ever, borrowers should not take anything for granted, as international events and political change domestically could change the trajectory very quickly.”
Jamie Elvin, Director at London-based Strive Mortgages, said: “If swap rates remain where they are, I’d expect further reductions from other lenders over the coming days. That said, borrowers shouldn’t try to second-guess the market.
“A good deal today is often worth far more than waiting in the hope of shaving another 0.10% off the rate, particularly when lenders allow you to switch onto a cheaper product before completion.”
Rohit Kohli, Director at Romsey-based The Mortgage Stop said lenders are now competing hard but conditions remain volatile: “I wouldn’t get carried away as we’re still dealing with a huge amount of geopolitical uncertainty, and that’s far from resolved.”
