Nationwide has cut its mortgage rates for the third time in a month, offering some of the most competitive deals currently available in the market, as brokers warn borrowers to lock in rates now before geopolitical uncertainty and a change of Prime Minister unsettle financial markets.
Britain’s biggest building society has reduced rates by up to 0.25 percentage points across deals for first-time buyers, home movers and those looking to remortgage, building on cuts of up to 0.28 per cent made early last week. The latest reductions leave Nationwide offering a market-leading two-year fixed rate of 4.19 per cent for home movers with at least a 40 per cent deposit, though the deal comes with a £1,499 fee. The next best equivalent deal is from Coventry Building Society at 4.24 per cent with a £999 fee. On a £300,000 repayment mortgage over 25 years, Nationwide’s new deal would cost £1,615 a month for the fixed term, according to This is Money.
Nationwide’s five-year fixed rates now start from 4.31 per cent, undercutting NatWest’s next best offer of 4.34 per cent. First-time buyers with a 15 per cent deposit can secure a five-year fix at 4.62 per cent with a £999 fee, while those with a 10 per cent deposit can access a two-year fix at 4.82 per cent — translating to monthly repayments of around £1,149 on a 25-year term. Remortgaging customers with 40 per cent equity in their home can now access a two-year fix at 4.49 per cent or a five-year fix at 4.59 per cent, both with a £999 fee attached.
Mortgage brokers are urging borrowers to move quickly rather than wait in the hope of further improvements, pointing to a combination of political and geopolitical risks that could push rates in the wrong direction at short notice. The US-Iran ceasefire remains fragile, with renewed tensions around the Strait of Hormuz already testing its durability, while Andy Burnham is expected to succeed Keir Starmer as Prime Minister next month following Labour’s leadership contest.
Justin Moy, managing director at Chelmsford-based broker EHF Mortgages, said: “As always, the recommendation is to pick up a new deal as soon as possible, as the Middle East conflict can flare up at any time, and a change of Prime Minister can cause market jitters as well.” Rohit Kohli, director at Romsey-based The Mortgage Stop, told Newspage: “This is about as good as it gets in the UK — which is precisely why borrowers should be acting now, not waiting to see what happens next. We’re getting a new Prime Minister. The Iran conflict is ceasefire on paper, knife edge in practice. The market is moving in the right direction today — but any of those factors could change the picture within weeks. If the deal stacks up now, there’s no logic in holding out for better.”
