Rates in the ‘converter’ range have been reduced by up to 0.12%, which will be useful for anyone who is nearing the end of their mortgage deal nationwide and doesn’t want to go through a full remortgage.
Converters – known as product transfers in the industry – are an option for those nearing their end of the deal.
According to Darren Paulson, head of mortgage operations at Aberdein Considine, this route can be easier and quicker as it typically does not require underwriting, valuations, administration costs or proof of income realizations.
However, he warned that borrowers may miss out on more competitive deals available from other lenders which can be accessed by remortgaging.
Nationwide said conversion rates now start at 4.56%.
Carlo Belligi, Nationwide’s head of mortgage products, said: “We are making these latest interest rate cuts to support existing customers as they reach the end of their existing deal.
“Along with our Pricing Pledge – ensuring transfer rates are the same as or lower than remortgage equivalents – it reflects our commitment to helping our customers secure the best possible rate on their new mortgage deal.”
Should you go for a mortgage switcher?
Staying with your current lender at the end of your deal rather than finding a new bank will save you hassle. But most experts advise you to check out the competition first.
Nouran Mustafa, Practice Manager and IFA at Ruxton fortuneSpeaking to Newspage: “Existing borrowers need speed, certainty and less friction. If a customer stays with their current lender, there’s often no full remortgage process, no appraisal drama and less paperwork, which can be a lifeline when people are already worried about payment shock.”
“But borrowers shouldn’t give up on the product transition process just because it’s easy.
“They still need to compare the wider market, checking fees, term, overpayment flexibility, and whether their circumstances have changed. Small reductions are important, but strategy matters even more. The cheapest quick option is not always the best mortgage decision in the long term.”
