Nationwide Building Society and Santander have announced mortgage rate cuts, with other lenders potentially set to follow suit. Nationwide is cutting rates by up to 0.4% on its fixed mortgage products for new customers moving home, first-time buyers and remortgaging customers. Santander, which has already reduced rates by up to 0.29% in the past week, is now offering rates up to 0.2% cheaper on certain products.
- Nationwide:
- New Nationwide customers moving home can get reductions of up to 0.4% on certain fixed mortgage products.
- Offerings include a 5.39% five-year fixed rate for 60% LTV (Loan-to-Value) with no fee and others.
- First-time buyers get reductions up to 35% on certain fixed mortgage products.
- Those looking to remortgage can see cuts up to 0.15% on some fixed rates.
- Existing Nationwide customers moving homes can enjoy up to 0.40% reductions. Switcher rates and additional borrowing rates drop by up to 0.10%.
- Henry Jordan of Nationwide: As the economy becomes more stable, they can offer lower mortgage rates.
- Santander:
- Santander reduced their rates by up to 0.2%. This is a recent move, following last week’s rate cut.
- New offers for first-time buyers include rates from 5.41% and a cashback of £500.
- Among the new deals: 5.2% for a 75% LTV five-year fixed rate (down from 5.3%) and others.
- Graham Sellar of Santander: “We are delighted to be able to help borrowers access cheaper loans with further reductions to our fixed mortgage rates.”
- Experts’ Comments:
- Jamie Lennox, Dimora Mortgages: Praises the rate reductions by another Big Six lender. However, he hints at the lending market slowing down and expects more competitive rates from other lenders.
- Samuel Mather-Holgate, Financial Advisor: He believes these interest rate cuts are temporary. Despite the appetite of lenders to attract new business with lower rates, looming inflation and the possibility of the central bank hiking rates could reverse this trend. He added, “Until the Bank of England starts cutting rates, which should be later this year, borrowers face uncertainty around which direction the cost of borrowing money will go.”
In Simpler Words: Both Nationwide and Santander, two big banks, have reduced their mortgage rates. This is good news for people looking to buy homes or move. Even though this seems great, experts warn these low rates might not last long because of economic changes. So, it’s a good idea for potential home buyers to keep an eye on the economy and consult with financial advisors before making decisions.