From tomorrow, reductions will be made for purchases and remortgage borrowers on deals that do not carry a mortgage arrangement fee.
Highlights from the rate reductions include: 5.99 per cent at 60 per cent loan to value (LTV) for homemovers, tracking the base rate by +0.74 per cent for two years. Previously the rate was 6.29 per cent. At 80 per cent LTV, borrowers can access a variable rate of 6.22 per cent cut from 6.44 per cent. At 95 per cent LTV, a rate of 6.70 per cent is available, down from 6.74 per cent.
These changes should see Nationwide move to the top spot in the best buy tables for two-year trackers for LTVs at 85 to 95 per cent.
For first-time buyers, refreshed rates include a two-year tracker rate at 60 per cent LTV priced at 6.14 per cent and a 75 per cent LTV option at 6.19 per cent. Both deals have been reduced by 0.40 per cent.
Nationwide’s move ‘strengthens their variable rate position’
Nicholas Mendes, mortgage technical manager for John Charcol, said: “Nationwide have made sweeping changes to their fee-free tracker pricing products.
“With the recent base rate hold and market sentiment that we have reached the peak, tracker products are a fantastic option for mortgage holders not looking to be tied into a deal in a period when fixed rates are slowly reducing.
“Nationwide are already market leaders with their fixed rate proposition, so this move strengthens their position for mortgage holders looking for a variable rate.”
The building society has also cut rates on its fixed rate remortgages by up to 0.40 per cent. A rate of 4.99 per cent is available, fixed over five years, for borrowers who have 40 per cent equity. An arrangement fee of £999 applies.
Henry Jordan, director of home at Nationwide Building Society, said: “Last week, we moved to offer sub-five per cent rates for first-time buyers and those looking to move to their next home. These latest changes mean borrowers remortgaging to Nationwide can also now access sub-five per cent rates.”
