Nationwide Building Society confirms major cut to mortgage rates - full list of changes

Nationwide is reducing rates across its entire fixed mortgage range, with cuts of up to 0.25 percentage points taking effect from tomorrow.

The building society's cheapest deal now sits at 4.50 per cent, available to both new and existing customers who are purchasing a property.

These reductions apply to two, three and five-year fixed rate products for first-time buyers and home movers, covering mortgages up to 95 per cent loan-to-value.

Carlo Pileggi, Nationwide's Head of Mortgage Products, said: "We're delighted to be able to make cuts to our mortgage rates to support both first-time buyers and those looking to move to their next home."

He added that some of the biggest reductions target higher loan-to-value mortgages, which should particularly help those trying to get onto the property ladder.

For those buying their first home, a five-year fixed deal at 90 per cent loan-to-value with a £999 fee drops to 5.25 per cent following a 0.25 percentage point reduction.

A two-year fix at 60 per cent loan-to-value with a £1,499 fee falls to 4.66 per cent, while a three-year option at 80 per cent loan-to-value with a £999 fee comes down to 5.05 per cent.

First-time buyers completing their mortgage with Nationwide receive £500 cashback, with an additional £500 available through the Green Reward scheme for energy-efficient property purchases.

Existing customers moving home can secure a two-year fixed rate at 60 per cent loan-to-value for 4.50 per cent with a £1,499 fee, or a five-year fix at 80 per cent loan-to-value for 4.81 per cent with a £999 fee.

The new rates include:

First-time buyers:

• Reductions of up to 0.25 per cent across two, three and five-year fixed rate products up to 95 per cent loan-to-value
• Five-year fixed rate at 90 per cent LTV with a £999 fee is 5.25 per cent (reduced by 0.25 per cent)
• Two-year fixed rate at 60 per cent LTV with a £1,499 fee is 4.66 per cent (reduced by 0.24 per cent)
• Three-year fixed rate at 80 per cent LTV with a £999 fee is 5.05 per cent (reduced by 0.25 per cent)

First-time buyers will also receive £500 cashback on completion. Both first-time buyers and home movers can get up to £500 cashback through Nationwide’s Green Reward when purchasing an energy-efficient property.

Existing and new customers moving home:

• Reductions of up to 0.25 per cent across two, three and five-year fixed rate products up to 95 per cent LTV
• Two-year fixed rate at 60 per cent LTV with a £1,499 fee is 4.50 per cent (reduced by 0.16 per cent)
• Five-year fixed rate at 80 per cent LTV with a £999 fee is 4.81 per cent (reduced by 0.17 per cent)
• Two-year fixed rate at 75 per cent LTV with a £1,499 fee is 4.65 per cent (reduced by 0.12 per cent)

Nationwide is not alone in trimming mortgage costs this week, with several major high street banks announcing similar moves.

Santander is lowering rates on Friday for the second time this month, cutting first-time buyer, home mover and remortgage fixed deals by up to 0.25 percentage points.

The bank's 98 per cent loan-to-value My First Mortgage product drops to 5.60 per cent, while new offerings include a three-year fix at 5.55 per cent for buyers with a five per cent deposit.

HSBC UK is refreshing its range from Thursday after making reductions last week, with cuts for first-time buyers, home movers and those remortgaging.

Barclays and Skipton Building Society both lowered their rates on Wednesday, while Virgin Money is reducing costs on Thursday for home buyers, remortgage customers and buy-to-let borrowers.

While these cuts offer some relief, typical mortgage rates remain significantly higher than they were at the beginning of March.

According to Moneyfacts, the average two-year fixed homeowner mortgage stood at 5.83 per cent on Wednesday morning, down slightly from 5.87 per cent the day before. Five-year fixed deals averaged 5.73 per cent, compared with 5.76 per cent on Tuesday.

These figures contrast sharply with early March, when the average two-year fix was 4.83 per cent and the average five-year deal sat at 4.95 per cent.

Swap rates, which lenders use to set mortgage prices, have been falling recently. However, conflict in the Middle East has created market uncertainty and increased expectations that interest rates will stay elevated for longer.