Nationwide took the axe to its mortgage rates today slashing them by up to 0.81% in an aggressive bid to stay competitive with its rivals.
The building society, one of Britain’s biggest mortgage lenders, had stayed largely on the sidelines during the recent frenzy of rate cutting.
Today it moved dramatically to position itself near the top of “best buy” tables with the first set of cuts since early December. It takes some of its headline deals back down below 4% for the first time in eight months.
It comes on the same day that rival Santander said it would slightly increase rates on some of its deals because of a recent hardening of swap rates following the surprise increase in the rate of inflation last week.
As ever the best deals are for borrowers with the biggest deposits. The rate on a five year fix for remortgaging with a 40% deposit is being cut by 0.8% to 3.88%.
For first time buyers with a 25% deposit the three year fixed rate is being cut by 0.74% to 4.34%.
Henry Jordan, Nationwide’s director of Home, said: “As one of the largest lenders in the country, we remain as committed as ever to supporting borrowers.
"These latest changes mean we are now offering sub-four percent rates for the first time in eight months. These reductions will ensure that we have some of the lowest rates on the market for all types of borrowers whether it be first-time buyers, home movers or those looking to remortgage or switch deal.”
Brokers welcomed the move. Stephen Perkins, managing director at Yellow Brick Mortgages, said: “Nationwide turn up late to the party and then look to steal the show with what sound to be drastic rate cuts the same day some of the competitors are raising their rates. Such reductions should turn heads and put them out front in the race for new business.”
Mike Staton, Director at Staton Mortgages, said :”Nationwide have played a blinder here. They have waited for the market to dip their toe in the water and just as we see some lenders start to apply some caution, Nationwide put themselves right in the mix to cement the fact that this market is definitely improving despite what unqualified nay-sayers are preaching.”
