Nationwide cuts mortgage rates by up to 0.19%

This is a reminder that mortgage pricing can move in both directions. Just a couple of weeks ago we were seeing lenders increase rates as swap rates rose. Now those funding costs have eased, Nationwide has been quick to pass some of that benefit on to borrowers.

If swap rates remain lower, I'd expect other lenders to follow. The mortgage market remains highly competitive, so when one major lender moves, others rarely want to be left behind.

Nationwide are not normally the first to move, but this is a welcome cut after a few weeks of sharp increases in fixed rate pricing. Inevitably other lenders will follow throughout the week, this will be down to improving Swap rates given the relative calm in the Middle Eat over the last few days, coupled with a traditionally quieter time for lenders.

After weeks of lenders raising rates in lockstep, Nationwide has had the decency to go the other way. Swap rates have settled and Nationwide is moving fast, cutting fixed rates by up to 0.19 percentage points from tomorrow. Others will follow. The mortgage market moves in herds, and right now the herd is heading somewhere more hospitable. The window is open, but it has a habit of closing abruptly, so act accordingly.

These cuts are modest, but the timing matters. After weeks of upward pressure, Nationwide is effectively signalling that the recent fall in swap rates has created enough breathing room to compete again.

I expect other lenders to follow if swaps remain lower, because nobody wants to look expensive when buyer and remortgage demand is still highly rate-sensitive. But this is unlikely to become a straight race to the bottom: funding markets remain volatile, so lenders may cut selectively, protect margins or withdraw deals quickly if conditions reverse.

Borrowers should welcome the movement without gambling on endless reductions. A 0.19 percentage-point cut can still save meaningful money on a large mortgage, but the best deal depends on fees, loan-to-value and circumstances, not the headline rate alone.

Good news - but let's not get carried away. Nationwide's cut reflects a recent dip in swap rates, and they've moved fast to pass it on. More lenders will likely follow if conditions hold. The problem is, they might not. We're in an environment where rates can move sharply based on what politicians say and do, here and abroad. The rollercoaster isn't stopping any time soon - not while that uncertainty persists. Take this reduction for what it is: a positive moment in an otherwise unpredictable market.

After a few weeks of mortgage rate hikes across the lenders Nationwide has announced some pricing improvements. The building society’s cheapest two-year fix is coming down marginally from 4.54% to 4.52% & the five-year fix is reducing from 4.61% to 4.53%. Its cheapest two-year tracker is staying at 4.09%.
Nationwide has clearly been busy given the size of the previous rate hikes that pushed them out of the best buy tables. Hopefully a few more lenders will lower rates again and we can reverse the scale of the price rises we have seen recently.
On Friday afternoon the lender Gen H sent a message to brokers saying after last week’s swap rate spike, things have “turned right round” meaning the lender could lower rates by up to 0.40%. Many borrowers are not going to fancy paying close to 4.5% for a fixed rate & they will expect that rates will come down again sooner rather than later. The Barclays 3.99% tracker seems to offer the best value at the moment even if there is a base rate hike.