New £3,500 'from today' update for Nationwide customers

Borrowers are being handed a boost after an update from Nationwide.

The building society unveiled fresh mortgage rate cuts for both new and existing customers, with the biggest reductions aimed at first-time buyers. The lender is cutting rates by up to 0.36 percentage points across its fixed deals from Tuesday, in a move designed to support home movers, remortgagers and those trying to get on the housing ladder. Its headline rate now falls to 4.35%, while the mutual says existing customers moving home can access the same or lower rates as new borrowers.

What it means for a £300,000 mortgage

For someone borrowing £300,000 over 25 years, the impact of these cuts could be significant. A typical five-year fix reduced by 0.36 percentage points - for example from 5.25% to 4.89% - could cut monthly repayments by around £60.

That equates to a saving of roughly £750 a year, or about £3,500 over a five-year deal. Even smaller reductions of around 0.20 percentage points could still shave about £30 a month off repayments, putting close to £1,800 back in borrowers’ pockets over a typical fixed term.

First-time buyers see biggest cuts

Nationwide is targeting those with smaller deposits with its most aggressive reductions.

Key deals now include:

• Five-year fixed at 90% loan-to-value (LTV) at 4.89% (down 0.36%)
• Five-year fixed at 85% LTV at 4.79% (down 0.34%)
• Two-year fixed at 85% LTV at 4.69% (down 0.26%)

First-time buyers will also receive £500 cashback on completion, with a further £500 available under its Green Reward scheme for energy-efficient homes.

Rates fall for home movers and existing customers

Home movers, including existing Nationwide borrowers, are also set to benefit, with cuts of up to 0.24 percentage points.

Among the deals:

• Two-year fixed at 60% LTV at 4.35%
• Five-year fixed at 60% LTV at 4.49%
• Five-year fixed at 75% LTV at 4.59%

The lender said the move underlined its commitment to rewarding loyalty, ensuring existing customers were not penalised when they moved.

Remortgage borrowers also gain

Those looking to switch deals are also included, with reductions of up to 0.24 percentage points.

Examples include:

• Two-year fixed at 75% LTV at 4.76%
• Two-year fixed at 60% LTV at 4.63%
• Five-year fixed at 85% LTV at 4.94%

‘Supporting customers at every stage’

Carlo Pileggi, Nationwide’s Head of Mortgage Products, said: “We’re pleased to be cutting our mortgage rates once again, with the biggest reductions this time aimed at first-time buyers.

“Some of our biggest rate cuts are being made on our higher loan-to-value mortgages, which will help those with smaller deposits to take their first step onto the property ladder.

“However, Nationwide remains an all-round lender and these rate cuts reflect our broader aim of supporting customers at every stage of homeownership.”