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On Friday (March 25), the National Building Society will cut rates on selected fixed-term, tracked products to 45 basis points, and the switching and incremental borrowing range to 25 basis points.
Brokers welcomed the cut, which came after the Bank of England raised its base rate by 25 basis points to 4.25%.
Mutual Company says the reduction in remortgages to 45 basis points for two-, three-, and five-year fixed-rate products and two-year products with tracking up to 90% loan-to-value includes:
- The 2-year flat rate at 60% commission-free LTV is now 4.49% (down 0.45%).
- The five-year flat rate at 60% LTV with a £999 fee is now 3.94% (down 0.25%).
- The five-year flat rate at 75% LTV with a £999 fee is now 3.99% (down 0.35%).
- The 2-year flat rate at 80% LTV with a £999 fee is now 4.59% (down 0.25%).
New Buyer Discounts of up to 35 basis points on select 2-, 3-, and 5-year fixed-rate deals and products with 2-year tracking up to 95% LTV include:
- 3-year flat rate at 60% LTV with £999 fee is now 4.34% (down 0.35%).
- The 3-year flat rate at 90% LTV with a £999 fee is now 4.89% (down 0.30%).
- The five-year flat rate at 60% LTV with a £999 fee is now 4.04% (down 0.20%).
Discounts of up to 35 basis points for new customers when switching to two-, three- and five-year fixed-rate loans and two-year products with a tracked rate up to 90% LTV include:
- The five-year flat rate at 75% commission-free LTV is now 4.14% (down 0.35%).
- 3-year flat rate at 90% LTV with £999 fee is now 4.79% (down 0.30%).
- The two-year flat rate at 75% LTV with a £999 fee is now 4.44% (down 0.25%).
Mint FS director Matthew Jackson says: “This is very important news. In the mortgage world, whatever Nationwide does, other lenders will follow.
“So while the Bank of England raised its base rate today, this move by Nationwide will see rates cut sharply as lenders compete to secure businesses to meet their 2023 lending targets.”
Lodestone Mortgages & Protection director Craig Fish adds: “These cuts are great news and in some cases will outweigh the increase we saw on Thursday.
“This is a real statement and we hope other lenders will follow suit. They could set these rates before the decision of the Bank of England, but waited until they increased their influence.”
The lender says brokers can reserve the product by providing a principled solution without filing a full mortgage application.
Existing items must be reserved by March 23, 20:00.
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