Nationwide Building Society is cutting remortgage rates for its existing customers.
Britain’s biggest mutual will lower rates by up to 0.12 percentage points from tomorrow, with the lowest rates for those remortgaging now starting at 4.56 per cent.
The headline deal is a 4.59 per cent five-year fix for those remortgaging with at least 40 per cent equity in their home. This comes with a £999 fee.
The deal matches HSBC’s best-buy with a similar fee, and for existing Nationwide customers means they won’t have to go through the hassle of switching to a new lender.
On a £200,000 mortgage being repaid over 25 years it would mean paying £1,121 a month.
For those looking for a shorter option, Nationwide’s lowest two-year fixed rate will now be 4.56 per cent for those remortgaging with at least 40 per cent equity. It comes with a £999 fee.
Competitive rates: Existing Nationwide customers coming to the end of their current mortgage deal could secure rates as low as 4.56%
TSB is offering a slightly lower 4.54 per cent two-year fix, but with a higher £1,504 fee, while Santander is also offering a 4.56 per cent rate with a £1,058 fee.
Nationwide is also launching a ‘fee free’ 4.83 per cent five-year deal for those with 25 per cent equity.
Nicholas Mendes, mortgage technical manager at broker John Charcol said the rate cuts show that the building society is keen to keep its existing mortgage customers.
He said: ‘Nationwide is making sure its existing customers have a credible reason to stay.
‘For a lot of existing Nationwide customers, these cuts will make staying put look like a sensible option.’
Mendes thinks the standout deal is the five-year fix at 4.59 per cent with a £999 fee.
He said: ‘It is competitive, particularly when you factor in the simplicity of staying with the same lender rather than going through a new application, valuation, and legal process.’
Mendes added that the 4.83 per cent five-year fix for those with 25 per cent equity in their home ‘will appeal more to borrowers who do not want to pay a product fee, or where the balance is lower and the fee saving matters more than squeezing every last basis point out of the rate.’
Broker Aaron Strutt of Trinity Financial says there are still deals on the market that might tempt people away from Nationwide in the coming days and weeks, however.
He said: ‘Mortgages are looking reasonable value for money again and there may well be more fixed rate price cuts to come.
‘Most of the big banks and building societies have lowered their rates multiple times in recent weeks.’
