Explore how Nationwide Building Society’s mortgage rate adjustments provide relief amid base rate changes. Discover reduced rates for new customers, first-time homebuyers, and remortgagers, and their impact on existing clients. Director Henry Jordan’s insights shed light on these adaptations in the face of shifting interest rates.
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Nationwide Building Society to Decrease Mortgage Rates by Up to 0.40% in Response to Base Rate Shifts.
In a bid to provide relief amidst consistent base rate hikes by the Bank of England, Nationwide Building Society has unveiled plans to lower its mortgage product rates by as much as 0.40 percent. Effective from Wednesday, August 23, these adjustments come at a time when the UK’s base rate rests at 5.25 percent. The elevation of the base rate has been orchestrated to counter the impact of inflation on the national economy. This move has seen savers enjoy increased interest rates, while borrowers, particularly mortgage holders, grapple with surging repayment obligations.
However, Nationwide and other financial institutions have chosen to counterbalance this strain by trimming down mortgage rates, thereby lending support to homeowners facing these challenging financial conditions. For those entering the housing market as new customers, the society is offering reductions of up to 0.40 percent across two, three, and five-year fixed-rate products with Loan-to-Value (LTV) ratios up to 95 percent.
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Here’s an overview of the modified mortgage rates for new Nationwide customers purchasing property:
- A five-year fixed rate at 60 percent LTV with no fee now stands at 5.39 percent.
- Presently, a three-year fixed rate at 75 percent Loan-to-Value (LTV) accompanied by a £999 fee stands at 5.89 percent.
- At this juncture, a two-year fixed rate at 60 percent LTV, combined with a £999 fee, has been adjusted to 5.94 percent.
For first-time homebuyers, those stepping onto the property ladder will also witness reductions of 0.35 percent across two, three, and five-year products with LTV ratios up to 95 percent. The new mortgage rates for these first-time buyers with Nationwide Building Society are:
- A five-year fixed rate at 60 percent LTV with no fee now rests at 5.44 percent.
- A two-year fixed rate at 75 percent LTV with a £999 fee is now marked at 6.04 percent.
- A three-year fixed rate at 60 percent LTV with a £999 fee now comes to 5.94 percent.
Homeowners seeking to remortgage their properties can avail of rate cuts of up to 0.15 percent across the society’s offerings with LTV ratios up to 90 percent. The revised rates for Nationwide customers opting to remortgage are as follows:
- A five-year fixed rate at 60 percent LTV with a £999 fee now settles at 5.49 percent.
- A two-year fixed rate at 75 percent LTV with no fee is now positioned at 6.39 percent.
- A three-year fixed rate at 90 percent LTV with no fee is now quoted at 6.30 percent.
In addition, the society is reducing selected two, three, and five-year fixed rates for existing customers moving residences by up to 0.40 percent. Additionally, Nationwide’s rates for switchers and additional borrowing will also see a reduction of 0.10 percent for its customers.
Henry Jordan, Director of Home at Nationwide Building Society, emphasized the significance of these rate reductions in light of escalating interest rates.
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