Nationwide surprisingly slashes mortgage rates

Ryan Bembridge

October 30, 2017

Nationwide Building Society is cutting mortgage rates tomorrow despite speculation that the Bank of England could soon raise interest rates.

Its 10-year fixes will be slashed by 0.50% to 2.49% to 60% loan-to-value with a £999 fee, or 2.59% with no fee.

The lender’s 2-year fixes to 60% LTV will be cut by 0.15% at 1.29% with a £999 fee, or 1.69% with no fee, while its 60% LTV 5-year fixes will stand at 1.79% with a £999 fee and 1.99% with no fee.

To 90% LTV 2-year fixes will be reduced to 1.99% with a £999 fee and 2.39% with no fee.

Bank of England Governor Mark Carney signalled the base rate rising in the “relatively near term” at the end of September.

However other members of the Monetary Policy Committee, including deputy governor Dave Ramsden, have been more cautious on the prospect of voting for a rate rise at the next meeting on November 2.

Henry Jordan, Nationwide’s director of mortgages, said: “As the likelihood of a rise in the Bank of England Base Rate increases, mortgage holders will be considering their options.

“The changes announced today offer improved choices across our range and are equally available to new customers and to existing members switching product with us.”

Tracker rates are also being reduced, as 2-year products starting at 1.04% with a £999 fee and 1.44% with no fee.

Some shared equity products will be cut, as fixed rates at 75% are being reduced to 1.39% with a £999 fee and 1.79% with no fee.

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