Nationwide Cuts Mortgage Rates to 4.29% on Fixed Deals

Nationwide cut mortgage rates to 4.29% on its cheapest fixed deal after lowering some fixed rates by up to 0.28 percentage points on 10 June. The second reduction in less than a week gives home movers and borrowers nearing the end of a deal more options, though the lowest-priced offer carries a £1,499 fee and needs a 40% deposit.

Nationwide's 4.29% cheapest deal

4.29% is available only to home movers on properties valued between £300,000 and £5 million, so the headline rate sits inside a narrow band rather than across Nationwide's wider book. The lender's latest move followed an earlier 10 June cut to remortgage rates for existing customers of 0.12 percentage points.

0.28 percentage points is the size of the latest reduction on some fixed rates, a move that can change the monthly bill for borrowers on large balances more quickly than a small headline number suggests. Nationwide left switcher mortgages and additional borrowing rates unchanged, so the cut did not reach every customer group at the same time.

Rachel Geddes on lower repayments

Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, said, "Nationwide’s latest rate reductions are positive news for anyone considering their next move on the housing ladder." She also said, "Whether you’re a first-time buyer, planning on relocating, or approaching the end of your current mortgage deal, lower fixed rates could mean improved affordability, reduced monthly repayments, and greater financial certainty."

"For anyone looking to make their mortgage work harder, now is an excellent time to review the market," Geddes said. Thursday's wait for the Bank of England's latest interest rate decision added a separate pressure point for borrowers weighing whether to lock in now or hold off, with Nationwide's fixed-rate cuts already shifting the numbers before that decision arrives.