Nationwide Building Society’s mortgage lender is cutting interest rates once again in a boon for homeowners. As of tomorrow, The Mortgage Works (TMW) will slash rates on selected mortgage products by up to 0.20 percentage points.
With this pending mortgage rate cut, rates with Nationwide’s mortgage lender will start from 3.84 per cent. This latest move from the building society comes after a series of interest rate reductions in recent weeks, with fellow high street financial institutions also making rate cuts.
The Bank of England base rate is currently at a 15-year high GB NEWSAs of tomorrow, the new buy-to-let switcher rates from Nationwide Building Society will include the following products:
- Two-year fixed at 3.99 per cent with a £3995 fee, available up to 65 per cent LTV (reduced by 0.05 per cent)
- Three-year fixed at 4.39 per cent with a £1,495 fee, available up to 65 per cent LTV (reduced by 0.10 per cent)
- Five-year fixed at 4.49 per cent, available up to 65 per cent LTV (reduced by 0.15 per cent).
Customers can also pick from other rate and fee combinations across The Mortgage Works’ range of switcher products.
Those interested in the following deals can get more details on all switcher rate reductions on the mortgage lender’s website.
Joe Avarne, the senior manager for Buy-to-Let Mortgages at the Nationwide lender, said: “We are continually looking to support our existing landlords and these latest reductions will be some of the most competitive and cost-effective options in the market.”
In the last year and a half, the Bank of England has raised the country’s base rate in an attempt to rein in inflation.
While this has been beneficial to savers, homeowners and other debt borrowers have been detrimentally affected.
Mortgage holders have been saddled with rising repayments thanks to the central bank’s decision to hike interest rates.
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Nationwide is cutting rates once again
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As it stands, the base rate is sitting at 5.25 per cent and has remained at this level for the last three months with inflation in the UK easing.
However, the Consumer Price Index (CPI) rate of inflation rose slightly to four percent in the 12 months to December 2023.
In light of this, analysts are forecasting the Bank of England will not reduce the country’s base rate until the later half of 2024.
According to Moneyfactscompare, the average two-year buy-to-let residential mortgage rate today is 5.50 per cent, while the five-year equivalent has a rate of 5.48 per cent.