Nationwide update as major change confirmed from Friday | Personal Finance | Finance

Britain’s biggest building society has announced a fresh update. Cuts kicking in from Friday that could trim hundreds of pounds off annual mortgage costs.

Nationwide Building Society said it is reducing rates by up to 0.25 percentage points across a wide range of fixed deals for both first-time buyers and those moving home. The move means its lowest rate now falls to 4.50%, in a sign lenders are continuing to ease pricing amid improving market conditions.

The latest move adds to a growing trend of lenders trimming rates as competition intensifies.

TSB has announced reductions of up to 0.8 of a percentage point on new deals while Santander has made reductions across its range.

HSBC, Barclays and Virgin Money, have also cut their rates and brokers, against this backdrop, have urged borrowers to seize the moment.

What’s changing from Friday

The Nationwide BS cuts apply across two, three and five-year fixed deals, including:

• First-time buyer five-year fix (90% loan-to-value): 5.25% (down 0.25%)
• Two-year fix (60% LTV): 4.66% (down 0.24%)
• Three-year fix (80% LTV): 5.05% (down 0.25%)
• Home movers two-year fix (60% LTV): 4.50% (down 0.16%)

First-time borrowers can also get £500 cashback, with a further £500 available for energy-efficient homes under its Green Reward scheme.

What it means in cash terms

While a 0.25% cut may sound small, the impact on monthly repayments is meaningful. For example, a typical buyer taking out a £250,000 mortgage over 25 years could see monthly payments fall by roughly £35 to £40.

That equates to annual savings of around £420 to £480 or up to £2,400 over a five-year fixed deal.

For larger loans, the benefit is even greater. Someone borrowing £350,000 could save closer to £55 a month, or £660 a year.

Help for first-time buyers

The biggest reductions have been focused on higher loan-to-value deals – often used by first-time buyers with smaller deposits.

Carlo Pileggi, head of mortgage products at Nationwide, said: “We’re delighted to be able to make cuts to our mortgage rates to support both first-time buyers and those looking to move to their next home.”

He added that some of the largest reductions are aimed at those trying to get onto the housing ladder.

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, told Newspage: “Lenders are clearly looking to encourage borrowers and, based on this evidence, feel that the outlook is better than just a few weeks ago.

“The good news here is that both property buyers and remortgage borrowers see a benefit, and so they may want to grab the opportunity while they can.

Ben Perks, Managing Director at Stourbridge-based Orchard Financial Advisers, urged borrowers to act fast or risk losing out.

“My message would be to act fast and secure rates while you can. After all, we’re only one Trump Truth Social post away from the next hike.” he said.