Nationwide £3,500 update for new and existing customers

Borrowers are set to benefit from a welcome boost following an announcement from Nationwide . The building society has unveiled a fresh round of mortgage rate cuts for both new and existing customers, with the most significant reductions targeted at first-time buyers. The lender is slashing rates by up to 0.36 percentage points across its fixed-rate deals from Tuesday, in a move aimed at supporting home movers, remortgagers and those striving to get a foot on the property ladder. Its headline rate now drops to 4.35%, while the mutual confirms that existing customers moving home can access the same or lower rates as new borrowers. For those borrowing £300,000 over 25 years, the impact of these reductions could be considerable. A typical five-year fix reduced by 0.36 percentage points - for example from 5.25% to 4.89% - could trim monthly repayments by approximately £60. That amounts to a saving of roughly £750 a year, or around £3,500 over a five-year deal. Even more modest reductions of around 0.20 percentage points could still knock about £30 a month off repayments, putting nearly £1,800 back into borrowers' pockets over a typical fixed term. Nationwide is focusing its most aggressive reductions on those with smaller deposits. Key deals now include: Five-year fixed at 90% loan-to-value (LTV) at 4.89% (down 0.36%) Five-year fixed at 85% LTV at 4.79% (down 0.34%) Two-year fixed at 85% LTV at 4.69% (down 0.26%) First-time buyers will also receive £500 cashback upon completion, with an additional £500 available through its Green Reward scheme for energy-efficient properties. Home movers, including current Nationwide borrowers, are also set to benefit, with reductions of up to 0.24 percentage points. Among the offers: Two-year fixed at 60% LTV at 4.35% Five-year fixed at 60% LTV at 4.49% Five-year fixed at 75% LTV at 4.59% The lender stated the move demonstrates its commitment to rewarding loyalty, ensuring existing customers aren't disadvantaged when relocating. Those seeking to switch deals are also included, with cuts of up to 0.24 percentage points. Examples include: Two-year fixed at 75% LTV at 4.76% Two-year fixed at 60% LTV at 4.63% Five-year fixed at 85% LTV at 4.94% Carlo Pileggi, Nationwide's Head of Mortgage Products, said: "We're pleased to be cutting our mortgage rates once again, with the biggest reductions this time aimed at first-time buyers. "Some of our biggest rate cuts are being made on our higher loan-to-value mortgages, which will help those with smaller deposits to take their first step on to the property ladder. "However, Nationwide remains an all-round lender and these rate cuts reflect our broader aim of supporting customers at every stage of homeownership."