Nationwide cuts mortgage rates for three customer groups saving hundreds every year

For those looking to relocate, or for those hoping to get on the property ladder and purchase their first home, one major bank has cut mortgage rates for three groups of their customers.

Nationwide is slashing their rates for first-time buyers, home movers and those who are remortgaging their homes. It will mean more in customer's pockets every month as the millions continue to grapple with soaring interest rates and the cost of living.

There will be reductions of up to 0.19 percentage points for new and existing customers across the three groups, with the bank offering its lowers fixed rate now at 4.52 percent for those looking to move.

The changes are in place from Tuesday (4 August) for UK customers, with rates reduced across their two, three and five-year fixed rate mortgage products.

For first-time buyers, reductions of up to 0.19 percent will be made across their fixed rate products of up to 95 percent LTV (loan to value ratio).

This could mean that a first-time buyer and those moving home could save £240 a year on a £200k mortgage, with an approximate annual saving of £170 for those looking to remortgage.

Nationwide is offering customers competitive rates (Getty Stock Images)

On a £200k mortgage, a monthly repayment saving.with a 0.19 percent cut would equate to £20 less a month to fork out. On a £250 house, this would be around £25 less, or £300 a year. And, on a £300k property, it would mean a saving of roughly £30 a month or £360 per year.

And according to the bank, first-time buyers will now also receive £500 cashback when completing their mortgage with them. Along with people who are relocating, they can also benefit from a further £500 cashback if they choose to purchase an energy-efficient property as defined by Nationwide's Green Reward.

Existing and new customers moving home will see mortgage reductions of up to 0.19 percent across two, three and five-year fixed rate products up to 95 percent LTV. And those remortgaging will see reductions of up to 0.13 percent.

Nationwide say the changes are due to its existing customer pricing pledge, meaning that all switcher product rates for existing customers looking for a new deal will be the same as or lower than the remortgage equivalents.

Nationwide has cuts mortgage rates for three customer groups

In a statement, Carlo Pileggi, Nationwide’s Head of Mortgage Products, said: “After a period of increasing swap rates, recent falls have created an opportunity for us to reduce mortgage rates, and we’re moving swiftly to ensure new and existing customers can benefit.

"These rate cuts will benefit a wide range of customers – first-time buyers, new and existing customers moving home as well as those remortgaging to Nationwide.”

Nationwide offers inflation-busting savings in six-year high

Nationwide was also among the banks who recently announced their offering of savings accounts which were hugely competitive and some of the best on the market in years.

The Bank of England's base rate influences the interest rates banks offer on everything from mortgages to savings accounts. This means that when banks increase their rates, it is often a sign they're competing for people's money by offering better returns.

And right now, banks are offering some of their best savings rates with more than 1,300 accounts currently paying above the Bank of England's 3.75 percent base rate.

Among the big-name banks offering competitive savings products are Nationwide and HSBC, alongside other newer providers and challenger banks.

According to Nationwide, there are a range of savings options depending on how much flexibility customers want. Its offers a Flex Regular Saver which offers 6.5 percent AER for those happy to save smaller amounts each month.

It also offers its Five Year Fixed Rate Cash ISA, which pays 4.5 percent AER for savers willing to lock their money away for longer.