New Nationwide update as change 'begins on Friday'

New Nationwide update as change 'begins on Friday' Nationwide is making changes for customers Nationwide has issued an update for customers, with a change coming into effect from today. It has slashed its mortgage rates by up to 0.25% in a "welcome boost" for borrowers, as brokers forecast "we will see some more of this in the coming weeks". From Friday, June 26, Nationwide is reducing selected fixed rates by up to 0.25%. This encompasses rates across its first-time buyer, home mover, existing customers moving home and remortgage products, along with its switcher and additional borrowing product ranges. Nationwide's two-year fix is dropping from 4.29% to 4.19% and its three-year fix is falling from 4.49% to 4.44%. Its five-year fixes now start from 4.31%. The building society had already trimmed mortgage rates by up to 0.28% early last week. This follows news that The Mortgage Works is also cutting its new business mortgage rates by up to 0.25%. Brokers urged borrowers to secure deals now amid growing uncertainty, with the Iran and US ceasefire hanging by a thread and Andy Burnham widely expected to succeed Sir Keir Starmer as Prime Minister within the next couple of months. Nationwide update is 'good news' Brokers indicated that markets are steadying – paving the way for lower rates in the near future. Manooch Suree, director of Uxbridge-based Zinga Financial Services, said it was good news for borrowers. He added: "Nationwide cutting selected fixed rates by up to 0.25% is a welcome boost for buyers and homeowners. With markets still reacting to inflation, interest rate expectations and global economic news, lender pricing can move quickly. "If you're buying, moving or remortgaging, it's worth reviewing your options now. Overall, any reduction is good news for the current housing market and wider economy." Omer Mehmet, managing director of Welling-based Trinity Finance, welcomed the cuts. He added: "With the oil price returning to pre-war levels, there is a sense of optimism in the air after a turbulent few months. When major lenders like the Nationwide cuts rates, others tend to follow." Michelle Lawson, director of Fareham-based Lawson Financial, said she anticipated further reductions in the weeks ahead. She added: "Temperatures aren't the only things hotting up. Nationwide is reducing its rates further to tempt borrowers off the beach. As markets stabilise we will see some more of this in the coming weeks." Unpredictability Justin Moy, managing director of Chelmsford-based EHF Mortgages, cautioned that uncertainty lay ahead. He added: "Welcome news from Nationwide and others who have recently cut rates, as swaps have melted in the heat this week, allowing lenders to pass on these savings. 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. No need for oven gloves just yet, rates are just starting to warm up again." Rohit Kohli, director of Romsey-based The Mortgage Stop, said borrowers needed to secure a rate without delay. He added: "It's 36C outside and mortgage rates are coming down. 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. Nobody predicted record June temperatures either. Make hay while the sun shines. Right now, it's blazing." 'Time to act' if you're applying for a mortgage David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth, said the moment to move was now. He added: "Nationwide is cutting fixed rates by up to 0.25% from tomorrow – and while that might not sound like cause for celebration – it is part of a broader repricing across the market. Swap rates are falling in anticipation of further Bank of England cuts. Fixed rates are priced on where money is going, not where it is today, which is why lenders are moving now. "That said, waiting for the 'perfect' rate is a bit like waiting for a quiet day on the M25, which is theoretically possible, but nobody has ever actually seen one. If your fixed rate deal is ending soon, now is the time to act." Aaron Strutt, product and communications director at London-based Trinity Financial, said he hoped other big lenders would follow Nationwide's lead. He added: "Nationwide has just announced that it is lowering its rates again after its last set of price cuts on June 16. The bigger lenders are improving their rates more frequently at the moment, which is good news for home buyers and the lender's existing mortgage customers. "Nationwide already had the cheapest two- and five-year fixes, but the lender is lowering its prices again hot on the heels of Barclays which dropped its rates twice in the space of a few days. Hopefully a few other big lenders will do the same thing soon. "These rates are still not as low as the best trackers starting from 3.96% but they seems to be getting closer every few days with all of these rate cuts. A change of prime minister is expected to bring more economic instability – but hopefully it doesn't hit the mortgage market." [Image text:] Anationwide nationwide