The changes will see the mutual offer sub-5% rates to borrowers with just a 5% deposit or equity.
New borrowers moving home will see reductions of up to 0.21%, such as a five-year fix at 95% loan to value (LTV) with a £999 fee, which has been cut by 0.05% to 4.99%. At 90% LTV, a fee-free two-year fix has been reduced by 0.21% to 4.99%.
At the same tier, a five-year fix with a £999 fee has been lowered by 0.1% to 4.57%, as has the two-year fix at 80% LTV with a £999 fee, putting it at 4.49%.
Existing borrowers moving home will see a similar reduction, with the fee-free two-year fix at 90% LTV now 4.99% after a 0.21% cut.
The five-year fix at 90% LTV with a £999 fee has been reduced by 0.1% to 4.57%, and the two-year fix at 85% LTV with a £999 fee has gone down by the same amount to 4.49%.
Shawbrook is the specialist mortgage sector’s ‘best kept secret’ – Sard
Sponsored by Shawbrook Bank
For first-time buyers, a two-year fix at 95% LTV with a £999 fee has been trimmed by 0.25% to 5.04%, and a fee-free two-year fix at the same tier has been lowered by 0.26% to 5.3%.
The two-year fix at 85% LTV with a £999 fee has gone down by 0.04% to 4.6%.
Nationwide has also cut remortgage rates by up to 0.12%, including a two-year fix at 85% LTV with no fee, which has seen the larger reduction and is now 5.15%. The option with a £999 fee has been reduced by 0.05% to 4.84%.
Additionally, the lender is adding two- and five-year fixes with a £1,499 fee at 90% and 95% LTV, open to first-time buyers, new and existing borrowers moving home and people remortgaging to Nationwide.
Carlo Pileggi, senior manager for mortgages at Nationwide, said: “Our latest rate cuts will be welcome news to borrowers with smaller deposits, particularly first-time buyers, and we’re pleased to once again be offering rates below 5% for those with a 5% deposit.
“The introduction of our new £1,499 fee products will also widen the choice of products available for those who are considering Nationwide for their mortgage needs.”
Earlier this week, the firm upped the LTV for interest-only borrowing and foreign national applications.
