Nationwide cuts two-year fixed rates

Nationwide has cut its two-year fixed rates for borrowers with smaller deposits by up to 0.25%.

And it has made further reductions on selected two and five-year fixed switcher rates for existing customers looking for a new deal.

The new changes came into force on Friday. 

Rates for Nationwide’s two-year fixed rate product to 80% LTV start at 1.89%, while for those with a 10% deposit product rates start at 3.24%.

There are reductions on the two-year fixed rate 85% LTV deals for new Nationwide mortgage customers of 0.25%, with rates now as low as 2.09%. 

Henry Jordan, Nationwide’s head of mortgages, said: “These reductions aim to help customers with smaller deposits to secure a competitive mortgage deal, whether they are a first-time buyer, or an existing mortgage customer looking for a new deal.

“The recently launched £500 cashback for first-time buyers is an additional boost for those looking to take a step onto the housing ladder, as Nationwide continues to offer extra support for the important group of customers.”

All first-time buyers, regardless of product choice, will receive a £500 cashback.

Existing mortgage customers benefit from at least an additional 0.10% discount on all new customer rates.

Remortgage customers benefit from free standard valuation and the choice between free standard legal work or £250 cashback.

New two-year fixed rates:

80% LTV rate with a £999 fee reduced by 0.10% to 1.89%

80% LTV rate with a £0 fee reduced by 0.10% to 2.29%

85% LTV rate with a £999 fee reduced by 0.25% to 2.09%

85% LTV rate with a £0 fee reduced by 0.25% to 2.49%

90% LTV rate with a £999 fee reduced by 0.10% to 3.24%

90% LTV rate with a £0 fee reduced by 0.10% to 3.64%

There are further reductions for existing Nationwide mortgage customers who are looking to switch deal as part of the Nationwide Loyalty Rate Mortgages initiative.

This compares the Society’s mortgage rates for existing customers to those of its top six high street competitors.

Loyalty Rate Mortgage rates:

80% LTV 2 year fixed rate with a £0 fee reduced by 0.05% to 2.14%

85% LTV 2 year fixed rate with a £0 fee reduced by 0.10% to 2.29%

80% LTV 5 year fixed rate with a £999 fee reduced by 0.05% to 2.79%

80% LTV 5 year fixed rate with a £0 fee reduced by 0.10% to 2.94%

85% LTV 5 year fixed rate with a £0 fee reduced by 0.05% to 3.39%.