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Nationwide Price Reductions

Journalist: Riz Malik

ended 27. July 2023

Nationwide is now part of a growing list of leading lenders who are slashing rates. Selected fixed and tracker rate switcher and additional borrowing products are being cut from Friday, July 28th. With a spate of rate cuts from various lenders in recent days, UK newswire, Newspage, asked brokers whether this signals the onset of a rate war, or if it could be short-lived if rates are raised again next week.

10 responses from the Newspage community

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Ben Tadd
Director at Lucra Mortgages
Yet another big player in the mortgage market slashing their rates is only a good thing for existing homeowners and prospective first-time buyers alike. However small a mini-rate war this is likely to be, it's a rate war all the same. One the consumer market has been crying out for and will welcome with open arms. Lenders are likely to have already priced in any potential Base Rate rises to be announced next week, into their newly released product ranges over the last few days, so it's unlikely there will be a knee-jerk reaction to hike these new rates back up again next week.
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Joe Thompson
Podcast host at The HomeBuyer Club
In a market full of negativity, this is a brilliant boost. Does it signify the start of rate reductions overall? No, but I feel as though it will be seen as a positive for a lot of buyers and remortgage clients needing a mortgage.
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Riz Malik
Independent Financial Adviser at R3 Wealth
This week is shaping up to be a standout one in recent months, as Nationwide joins the ranks of mortgage lenders lowering selected rates. Despite the anticipated base rate hike next week, there seems to be a newfound tranquillity in the rate landscape. But the question remains: how much of this calm is seasonal versus an indication of improving market conditions? We will certainly find out in the weeks ahead.
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Craig Fish
Director at Lodestone Mortgages
The jet stream hovering over the UK has been affecting the mortgage market as much as the weather, but it does seem to have shifted somewhat this week, and this latest lender to join the rate reduction party is warmly welcomed. We do need to be cautious, though, as the Monetary Policy Committee is certain to increase the base rate next week, and less than a week later inflation data is also released. Let's hope that the headwinds remain calm and settled and that this is just the start of further decreases. I think it's too early to call a rate war.
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Darryl Dhoffer
Founder at The Mortgage Geezer
Nationwide reducing fixed rates up to 0.35% and Tracker Rates 0.20% on Switcher and Additional Borrowing rates is positive for existing customers. No surprise they are being hesitant on new borrower deals, and, until we see what the Bank of England rate decision will be and the effect on subsequent inflation figures and SWAP rates, only then will we be able to see any trends on other lenders following suit. You can flip this the other way, with Nationwide planning to counter any reductions on rates by other lenders, and placing themselves favourably for client retention. Their outlook might be client retention as opposed to attracting new business.
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Mike Staton
Director at Staton Mortgages
It's always been on the cards that rates will fall, what goes up surely must always come down. The main issue is how long will this last, this isn't the first time we have seen a spate of reductions, and I won't be holding my breath too long until the bumbling idiots in power decide to leave us all in suspense, creating panic and seeing another increase in rates. We still have some way to go before the market stabilizes, unfortunately, the last years seem to have been 1 step forward and 2 steps back on too many occasions
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Rohit Kohli
Director at The Mortgage Stop
More welcome news this week from another major lender. Hopefully, this calms things down for the mortgage and property market. All eyes are now firmly on next Thursday's meeting at Threadneedle Street but with inflation still high and the Bank of England bruising from heavy criticism that it was slow to act, I'm still expecting another rise next Thursday. These cuts this week are about following the swap rates, which have eased off from their peak just a few weeks ago but they are still predicting higher base rates than where we are today.
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Jamie Alexander
Mortgage Director at Alexander Southwell Mortgages
Lenders had factored in quite gloomy worst-case scenarios, but with recent inflation numbers surpassing expectations, they are no longer under such intense pressure to continue doing so. Given that the rate increases in recent months may have been slightly excessive, it is anticipated that more lenders will revise their rates downwards in the upcoming weeks. Fingers crossed.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
Lenders had priced in some pretty pessimistic worst case scenarios over the last few months but after some significantly better than expected inflation numbers they aren't under so much pressure to do so. It feels like the last few months rate rises went a bit far so expect more lenders to reprice lower over the coming weeks.
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Lee Gathercole
Co-Founder at Rebus Financial Services
It's been quite a positive week for mortgage interest rates and great to see a lender like Nationwide following suit. With inflation dropping more than anticipated I think we will see only a marginal increase in the Bank of England base rate next week and the likelihood of further rate increases beyond this drop severely this will be pleasing for most homeowners.