Nationwide Building Society unveils major mortgage overhaul | Personal Finance | Finance

A major lender has announced it is overhauling its mortgage products in a huge win for Britons. Nationwide Building Society has unveiled 0.20% cuts to mortgage rates that will come into effect on Thursday (July 10).

The move will take place across selected two, three and five-year fixed rate products. The new rates include reductions of up to 0.11% for first-time buyers across two, and five-year fixed rate products up to 90% LTV. That includes a two-year fixed rate at 85% LTV with a £1,499 fee, five-year fixed rate at 85% LTV with a £999 fee (reduced by 0.10%) and five-year fixed rate at 90% LTV at 4.49% (reduced by 0.10%).

Remortgage customers will see reductions of up to 0.11% across two, three and five-year fixed rate products up to 90% LTV.

Nationwide is also reducing selected two, three and five-year switcher rates up to 95% LTV by up to 0.20%, with rates starting from 3.84%.

Additional borrowing rates are being cut by up to 0.14% on two, three and five-year fixed products up to 90% LTV, with rates starting from 3.84%.

The building society confirmed in an announcement on Wednesday that borrowers will continue to receive rates the same as or lower than the equivalent rates available for new customers moving home.

Carlo Pileggi, Nationwide’s Senior Manager – Mortgages, said alongside the new rates: “We’re making further cuts across selected products from our fixed mortgage range to ensure that Nationwide continues to be front of mind for those looking to buy their first home, move to their next or who want to switch to a new deal.

“These latest cuts will particularly help first-time buyers and our existing members switching to new deals.”

Mortgage experts are pricing in at least two more interest rate cuts from the Bank of England’s Monetary Policy Committee (MPC) by the end of this year.

If this is implemented, the cost of borrowing in the UK will fall to around 3.75%.