Nationwide and Virgin Money cut rates by up to 0.19%: "Finally some good news for borrowers"

NATIONWIDE and Virgin are reducing selected mortgage rates by up to 0.19% in a “positive” move after yesterday's Budget.

From tomorrow, Nationwide has announced it is reducing selected fixed rates by up to 0.19%. 

This includes rates across its First Time Buyer, Home Mover, Existing Customers Moving Home and Remortgage products, as well as its Switcher and Additional Borrowing ranges. 

Virgin Money has also just announced it is cutting selected rates, also by up to 0.19%  

Brokers welcomed the news.

Omer Mehmet, Managing Director at Welling-based Trinity Finance, said “Businesses may have been hammered in yesterday's Budget, but for borrowers the outcome appears relatively positive. SWAP rates have been bumping up and down a little bit today but these cuts from the Nationwide suggest that lenders are keen to get the market moving. 

"It's been a quiet couple of months in the property market but when a lender like Nationwide makes its move, others often follow.”

Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, said it'll be a relief to working families.

She added: "After a grim day for households yesterday, finally some good news. These cuts, especially those from the Nationwide, could see other lenders follow suit, which will benefit borrowers at a time when every penny counts. This will give some people a little extra breathing room."

Jack Tutton, Director at Fareham-based SJ Mortgages, said these are “significant” reductions.

He added: "Nationwide and Virgin are first out of the blocks to make changes to their rates following yesterday's Budget. After a day of increases in taxes and less money in our pockets down the line, these lenders have continued the trend that we have seen more recently by making further reductions to the rates that they offer. 

“Both lenders have made significant reductions to try and help all forms of mortgage holders, from first-time buyers through to existing customers, making sure that everyone can benefit from the reductions on offer.”

David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth Ltd, said they are “notable” cuts.

He continued: "Every cloud has a silver lining, and after the storm of yesterday’s budget, there’s finally some welcome sunshine for borrowers. Nationwide is the first to respond, introducing notable rate cuts of up to 0.19% across its range for all types of borrowers. 

“Virgin Money’s reductions are slightly more modest, but they signal that lenders may be gearing up for a competitive showdown as we head toward the New Year. Expect others to join the party soon.”

Ben Perks, Managing Director at Stourbridge-based Orchard Financial Advisers, said the signs point to a positive market reaction after the Budget.

He added: "These cuts will have been priced in a few days ago, but the fact that they’ve gone ahead is encouraging. The big indicator after a budget is if lenders start to pull products in quick succession. 

“After Truss’ catastrophic assault on the UKs finances, products were falling like dominoes. No sign of this yet, so we may have got away with it.”

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said the cuts are “major”.

He continued: "Major cuts from Nationwide this afternoon, with rates for those buying with just a 15% deposit now below that magic 4% threshold. 

"Rates are higher for first-time buyers, and those remortgaging, showing Nationwide is prioritising homemovers for their better deals, but everyone is seeing improvement. 

"Will these rates last? It is difficult to judge. Nationwide gives you the option to reserve a deal for 90 days, which is unique on the high street."