Nationwide reprices to offer sub-4% mortgage rates

by Aaron Strutt

Jan 23 2024

Nationwide Building Society has announced its latest set of mortgage price reductions after being the last of the big six providers to lower its rates recently. 

With the reprice effective from Wednesday, January 24, Nationwide's rates will start at just under 3.85% – its lowest in eight months.

For new customers moving home, the reductions extend up to 0.80% across two-, three-, five-, and 10-year fixed-rate mortgage products with a loan-to-value (LTV) of up to 95%.

First-time buyers will also benefit from rate cuts of up to 0.74% across various fixed-rate products with an LTV of up to 95%.

Remortgage options will also have their rates lowered by up to 0.80% across two-, three-, five-, and 10-year fixed rate products with a loan-to-value of up to 90%.

A loan-to-value (LTV) ratio in a Home Loan is the percentage of the property value that a bank or financial institution can lend to a property buyer. 

Is Nationwide offering the most competitively priced mortgage rates?

Nationwide is offering a selection of competitively priced rates, notably its new five-year fixes. The two-year rates are well priced, but lower, shorter-term rates are available through its competitors. 

Like many lenders, Nationwide offers different rates to borrowers, and different pricing applies when you purchase or remortgage a property. Its first-time buyer rates are also looking more competitively priced than they were.

Why has Nationwide introduced lower rates with higher arrangement fees?

Banks and building societies are keen to offer larger mortgage loans to borrowers. By offering higher fees and lower-rate products, they can attract more customers.

Nationwide offers different rates to borrowers depending on the size of their deposit. The building society also has arrangement fees ranging from £0 to £1,499.

The most competitively priced mortgages are available to those taking mortgages between £300,000 and £5 million, providing they have a 40% deposit. Rates are marginally more expensive if you borrow between £25,000 and £299,999. The no-fee product is around 0.3% higher, although it is often suitable for those with smaller mortgages.

What is Nationwide saying about its latest rate changes?

“As one of the largest lenders in the country, we remain as committed as ever to supporting borrowers,” Henry Jordan, director of home at Nationwide Building Society, said. “These latest changes mean we are now offering sub-4% rates for the first time in eight months.

“These reductions will ensure that we have some of the lowest rates on the market for all types of borrowers, whether it be first-time buyers, home movers or those looking to remortgage or switch deals.”

Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

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