"More positive news for homeowners" as Nationwide cuts fixed rates by up to 0.40%

Nationwide is the latest lender to reduce selected mortgage rates today, by up to 0.4% off remortgage deals and trackers. Brokers said these changes are more about the lender aligning with the rest of the market, but that further sub-5% mortgage deals are welcome.

According to Stephen Perkins, managing director at Norwich-based Yellow Brick Mortgages: "These cuts from Nationwide coming hot on the heels of reductions earlier today from TSB are yet more positive news for homeowners who continue to see a rate war sizzle despite some increases in swap rates over recent days. However, this was needed from the Nationwide to bring their rates in line with competitors as they were starting to fall adrift.”

Meanwhile, Craig Fish, managing director at London-based mortgage broker Lodestone, welcomed the fact that the sub-5% rates apply to remortgages, too, but said the size of the cuts may not be enough to see people fall back in love with property: "It's good to see Nationwide joining the party to offer slightly more competitive rates, and at long last a lender is offering a sub-5% rate to those who want to remortgage. But this is way short of what the market needs before we see any real signs of the British public falling back in love with property."

Justin Moy, founder at Chelmsford-based mortgage broker, EHF Mortgages, suggested we may now be close to the bottom of the current mortgage repricing cycle until the next set of inflation data: “Another good sign from Nationwide, who are trying to stimulate the mortgage market even though swap rates have crept up a little. This time Nationwide have concentrated on remortgages and existing borrowers, with a further sub-5% deal on offer for the 5-year fixed option. However, it looks like lenders have just about exhausted their options until we see more positive news on inflation.”

Elliott Culley, director at Hayling Island-based Switch Mortgage Finance, also had reservations: “Nothing eye-catching here as it is just an effort to keep pace with the lenders that have already reduced. I am still waiting for a lender to make a bolder statement, but they are understandably cautious in what has been an up-and-down year. However, more rates dropping improves the lending landscape and give borrowers a higher probability of securing a lower rate, so this will always be a positive.”

Culley's views were shared by Ranald Mitchell, director of Norwich-based independent mortgage broker, Charwin Private Clients, who said more meaningful cuts are needed: “More tit-for-tat rate reductions as the bigger lenders keep easing mortgage rates downwards. Consumer confidence needs a lift to spur on the property market and get the wheels turning again. When will a lender champion the consumer cause, take the plunge and make meaningful cuts to stimulate borrower confidence?”

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