Rates will be reduced by up to 0.19 percentage points across two-, three- and five-year fixed rate products. This now means Nationwide’s lowest rate is 4.52%.
Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol, said: “Swaps spiked when the Middle East conflict flared up in July, then pushed higher still into month end, with two-year SONIA touching 4.22% on 31 July and five-year reaching 4.313%.
“Both have since drifted back, to 4.139% and 4.227% respectively, though that’s only a partial retreat rather than a return to where things stood at the start of July, when two-year swaps were closer to 3.925%.”
The changes will apply to new and existing first-time buyers, homemover and remortgage clients.
For first-time buyers, reductions of up to 0.19% will be made across two-, three- and five-year fixed rate products up to 95% LTV.
The two-year fixed rate at 95% LTV with a £999 fee is 5.25%, down by 0.19 percentage points. The three-year fixed rate at 60% LTV with a £999 fee is 4.69%, reduced by 0.15 percentage points.
Within the homemover range, the two-year fixed rate at 60% LTV with a £1,499 fee has been reduced by 0.02 percentage points to 4.52%.
Finally, cuts of up to 0.13 percentage points were made Nationwide’s remortgage range.
Its five-year fixed rate at 75% LTV with a £999 fee has been reduced by 0.13 percentage points to 4.81%.
Also, the three-year fixed rate at 85% LTV with a £999 fee is 4.99%, reduced by 0.1 percentage points.
Mendes added: “Nationwide has a track record of being quick off the mark when swaps move downward, repricing accordingly to support borrowers with lower rates.
“The past few weeks have shown just how fast conditions can change. Anyone who secured a rate during July’s increases should keep an eye on the market and stay in regular touch with their broker, as most lenders typically let you switch to a cheaper rate should pricing continue to improve ahead of completion.”
Carlo Pileggi, head of mortgage products at Nationwide, said: “After a period of increasing swap rates, recent falls have created an opportunity for us to reduce mortgage rates, and we’re moving swiftly to ensure new and existing customers can benefit. These rate cuts will benefit a wide range of customers – first-time buyers, new and existing customers moving home as well as those remortgaging to Nationwide.”
