Nationwide building society to cut its mortgage rates

Britain’s largest building society, Nationwide, is lowering mortgage rates to as little as 3.89 per cent in a move that could have a significant impact on borrowers.

- VICKY SHAW

The reduced rates, effective from yesterday, apply to select two, three and five-year fixed-rate mortgages for both first-time buyers and existing homeowners. These cuts of up to 0.25 percentage points could make home ownership more accessible and potentially allow borrowers to secure larger loans.

The deals will include a two-year or five-year fixed rate at 3.89 per cent for borrowers with a 40 per cent deposit, with a £1,499 fee. This is available to existing and new Nationwide customers who are moving home. A first-time buyer two-year fixed-rate mortgage will also be offered at 4.09 per cent, for borrowers with a 40 per cent deposit, with a £1,499 fee.