Nationwide has recently announced a remarkaable update for its customers. The Mortgage Works, which operates as part of Nationwide, is set to reduce the switcher mortgage rates starting from tomorrow. This rate reduction is a step that aligns well with the company’s long-standing commitment to providing value for their customers, particularly those involved in Buy to Let ventures.
Details of the Rate Reductions
The imminent rate reduction will see a minor but impactful decrease of 0.05 percentage points across various fixed-rate products. The switcher products for Buy to Let include a two-year fixed at 3.79% with a 3% fee, available up to 65% Loan to Value (LTV), reduced from 3.84%. Similarly, the three-year fixed rate will also see a downward adjustment to 3.84%, applicable up to 65% LTV with a 3% fee. These adjustments, though seemingly small, offer considerable benefits over the long term.
Impact on Landlords
Joe Avarne, Senior Manager for Buy-to-Let Mortgages at The Mortgage Works, emphasized the positive impact these changes would have on landlords. “These competitive rate reductions continue to evidence our commitment to supporting landlords looking to manage their cashflow through fixed rates,” said Avarne.
For those involved in the buy-to-let sector, these rate reductions could translate to significant savings, especially when considering the cumulative effect of these changes over a two or three-year period.
Eligibility and Switching Criteria
Customers who have Buy to Let mortgages approaching maturity, or those that have already matured, are encouraged to explore new switcher products available from The Mortgage Works. Eligibility criteria include not having any current mortgage arrears. Other criteria for switching include:
- No current mortgage arrears
- Not being subject to a Bankruptcy Order or Individual Voluntary Arrangement (IVA)
- Successful automated valuation of the property
Those whose mortgages fall under these criteria could find themselves in a better financial position by securing the newly reduced rates.
Nationwide’s Market Position
Nationwide remains steadfast in its mission to offer value and support to its customers. As the UK’s third-largest mortgage provider, Nationwide holds almost £1 in every £10 saved in the UK. It also supports a significant portion of those relying on the private rented sector. This announcement underlines the organization’s continued commitment to its customers, particularly landlords and tenants affected by fluctuating market conditions.
Whether you are contemplating switching products or securing a new fixed-rate mortgage, the reduced rates available from September 12, 2024, could offer timely financial relief.
Final Thoughts
For existing and potential mortgage holders, these rate reductions by The Mortgage Works present a timely opportunity to revisit their mortgage conditions. Customers are advised to review their eligibility and consider making the switch to benefit from the new rates. By doing so, Nationwide continues to prove its dedication to offering competitive mortgage products that cater to the evolving needs of its customers.
