Hours later, Nationwide said it would be cutting many of its rates by 0.31 percentage points.
The new rates include offers below 5% for new customers at up to 75% loan-to-value and for customers moving house at up to 85%.
Lenders had been cutting rates through most of August and early September as the City began to see a lower peak to the Bank rate. But those reductions had seemingly stopped before the Bank’s 5-4 decision today.
Elliott Culley, director of Switch Mortgage Finance, said he expects other lenders to follow: “More good news in the mortgage market after today’s base rate decision. I think rates will continue to fall and will look even better by the start of October.
He added that more deals below the 5% mark were coming to the market.
It’s great to see rates starting with a four and not just at the lowest loan-to-values.”
Riz Malik, director of R3 Mortgages, said: “Nationwide is the first high street lender to reprice within a couple of hours of the base rate announcement. With some sub-5% deals on offer, I expect others to come out fighting within the next 24 hours. It’s now firmly game on.”
This morning, Nationwide also announced a new 8% savings account with a £200 switching offer.