Nationwide confirms changes for customers 'from Tuesday' as some paid £500

Nationwide has announced changes for customers that come into effect from tomorrow.

It is reducing selected two, three and five-year fixed mortgage rates by up to 0.15% for first-time buyers, home movers and people remortgaging. This puts Nationwide’s lowest rate at 4.48%. Brokers welcomed the cuts, which follow in the wake of the Halifax cutting rates late last week, as a "flicker of light", but urged borrowers not to take continued reductions for granted.

First-time buyers will benefit from reductions of up to 0.10% across two, three and five-year fixed rate products up to 95% loan-to-value (LTV), including:

First-time buyers will also receive £500 cashback when they complete their mortgage with Nationwide. First-time buyers and those moving home can also benefit from cashback of up to £500 if they purchase an energy-efficient property through Nationwide’s Green Reward.

Meanwhile, existing and new customers moving home will see reductions of up to 0.10% across two, three and five-year fixed rate products up to 95% LTV, while remortgage borrowers will see reductions of up to 0.15% across two, three and five-year fixed rate products up to 90% LTV. The new rates will be effective from tomorrow, Tuesday, August 18.

Carlo Pileggi, Nationwide’s head of mortgage products, said: “We’re pleased to announce a further set of rate cuts across our fixed mortgage range, building on the cuts we made at the beginning of August. These latest changes bring our lowest mortgage rate back below 4.5% for new and existing borrowers moving home, while also maintaining our support for first-time buyers with smaller deposits and those remortgaging.”

Thomas Boughton, founder of London-based Artillium Real Estate Finance , said: "Nationwide reducing rates is an encouraging sign to kick off the week, following a number of lenders who made similar moves last week. Lenders are seemingly becoming more agile with their pricing, making reductions at a faster pace than they have historically following increases, which is another encouraging sign."

Matt Coulson, founder of Rickmansworth-based Heron Financial , described the cuts as "a flicker of light", but urged people to keep things in proportion.

He added: "A 0.15% cut from Nationwide, hot on the heels of Halifax, is welcome and it helps at the margin. It's also small, and it comes after months of rates see-sawing.

"Only a few weeks ago the cuts we'd seen were wiped out almost overnight when the Middle East pushed swap rates up. So one or two lenders trimming is as much about them competing for business as it is a sign the whole market has turned.

"These moves are driven by swap rates rather than the Bank of England and swaps can reverse as fast as they fall. The genuine turning point comes when inflation is clearly beaten and Threadneedle Street starts cutting with conviction, and we're not there yet.

"The Bank held last month, some of its own members wanted rates higher and inflation's expected to climb again by year end.