Nationwide Building Society has slashed rates across its fixed mortgage range, benefitting first-time buyers, home movers and those looking to remortgage or make a switch.
The mutual has announced that rates will be reduced by up to 0.21 percentage points for both new and existing customers, effective as of today, Friday, December 5. The move will make more sub-4% deals available from the lender, a win for borrowers who have been battered by soaring interest rates over the past few years. Carlo Pileggi, head of mortgage products at Nationwide, said: “We’re making cuts across our fixed rate mortgage range with even more of our rates now below 4%. These latest changes, which follow hot on the heels of the wide-ranging rate cuts we made at the end of last week, demonstrate that Nationwide remains focused on offering competitive rates to first-time buyers, home movers and those looking for a new deal.”
First-time buyers can get reductions of up to 0.21% across two, three and five-year fixed rate products up to 95% LTV, including:
- Two-year fixed rate at 85% LTV with a £999 fee is 3.92% (reduced by 0.16%)
- Two-year fixed rate at 95% LTV with no fee is 4.68% (reduced by 0.21%)
- Five-year fixed rate at 95% LTV with a £999 fee is 4.78% (reduced by 0.11%)
First-time buyers also receive £500 cashback when they complete their mortgage with Nationwide.
Existing and new customers moving home can get reductions of up to 0.13% across two, three and five-year fixed rate products up to 95% LTV, including:
- Two-year fixed rate at 60% LTV with a £1,499 fee2 is 3.58% (reduced by 0.02%)
- Two-year fixed rate at 75% LTV with a £999 fee is 3.67% (reduced by 0.12%)
- Two-year fixed rate at 85% LTV with a £999 fee is 3.81% (reduced by 0.13%)
- Five-year fixed rate at 60% LTV with a £999 fee is 3.80% (reduced by 0.04%)
These latest changes continue Nationwide’s existing mortgage customer pricing pledge, meaning that all switcher product rates will be the same or lower than the remortgage equivalents.
First-time buyers and those moving home can also benefit from cashback of up to £500 if they purchase an energy-efficient property through Nationwide’s Green Reward.
For switchers (existing Nationwide customers coming to the end of their current mortgage deal), reductions of up to 0.10% across two, three and five-year fixed rate products up to 90% LTV, include:
- Two-year fixed rate at 60% LTV with a £999 fee is 3.65% (reduced by 0.07%)
- Five-year fixed rate at 60% LTV with a £999 fee is 3.74% (reduced by 0.10%)
- Three-year fixed rate at 75% LTV with a £999 fee is 3.93% (reduced by 0.06%)
For remortgagers, reductions of up to 0.14% across two, three and five-year fixed rate products up to 95% LTV, include:
- Two-year fixed rate at 60% LTV with a £1,499 fee2 is 3.65% (reduced by 0.07%)
- Five-year fixed rate at 60% LTV with a £999 fee is 3.79% (reduced by 0.10%)
- Three-year fixed rate at 85% LTV with no fee is 4.35% (reduced by 0.14%)
Nationwide’s existing mortgage customer pricing pledge means that all switcher product rates will be the same or lower than the remortgage equivalents.
Brokers said lenders are already pricing in a base rate cut by the Bank of England later this month.
Shaun Sturgess, Director at Swansea-based Sturgess Mortgage Solutions, said: “It’s great to see some festive cheer for borrowers as Nationwide becomes one of only two lenders now offering sub-3.6% purchase rates, with Santander the other lender offering 3.55%.
“This is a really welcome move and, in my view, another clear sign that a Bank of England base rate cut could be just around the corner.
“Nationwide isn’t hanging about; they’re getting ahead of the pack and looking to start 2026 with a bang. What’s particularly positive is that the recent Budget doesn’t seem to have knocked lenders’ confidence to keep lending competitively. That’s exactly the kind of momentum the market needs going into the New Year.”
Daniel Hobbs, CEO of Rayleigh-based New Leaf Distribution, said it was high-fives all round.
He added: “High fives among borrowers as we see a 2-year fixed rate at 3.58%. You get the feeling it could be an unusually busy December on the mortgage front and that lenders could be slogging it out in the next fortnight.
“A lot of pent-up demand is now feeding through into the market after so many people put their plans on ice in the lead up to the Budget, and lenders are keen to hoover up what business they can. If we get a rate cut this month, which markets are betting on, it could be a strong start to 2026.”