Nationwide and HSBC have both moved to cut fixed-rate mortgage pricing, offering borrowers fresh relief as competition between major lenders continues to intensify. The latest reductions apply across a broad range of loan-to-value (LTV) bands, reaching as high as 95%, and are available to first-time buyers, home movers and existing customers looking to refinance.
Nationwide confirmed that it has lowered selected mortgage rates by up to 20 basis points, reflecting growing pressure among lenders to stay competitive as funding conditions improve and swap rates remain relatively stable. The changes affect both new borrowers and existing customers who are moving home.
For home movers with larger deposits, Nationwide has introduced sharper headline pricing. Its two-year fixed mortgage at 60% LTV, which carries a £1,499 product fee, has been reduced to 3.50%. A three-year fixed alternative at the same LTV, with a £999 fee, has also been repriced lower at 3.62%. These cuts place Nationwide among the most competitive lenders at lower LTVs.
Borrowers with smaller deposits are also seeing improvements. Nationwide has reduced its three-year fixed mortgage at 90% LTV with no product fee to 4.43%, while its two-year fixed deal at 85% LTV has fallen to 3.90%. These changes reflect growing confidence among lenders in lending at higher LTVs.
First-time buyers have not been overlooked. Nationwide has applied reductions of up to 17 basis points across its first-time buyer range, with fixed-rate products now available up to 95% LTV. Notable examples include a two-year fix at 85% LTV with a £999 fee priced at 3.75%, a two-year fix at 60% LTV with a £1,499 fee at 3.67%, and a five-year fixed mortgage at 90% LTV with a £999 fee now set at 4.22%.
Alongside rate cuts, Nationwide is continuing to offer incentives to support first-time buyers. Customers receive £500 cashback upon completion, with the possibility of a further £500 for those purchasing energy-efficient homes under the lender’s Green Reward scheme. The incentive aims to ease upfront costs while encouraging more sustainable home purchases.
HSBC has also announced widespread changes across its residential mortgage range, cutting rates for first-time buyers, home movers and existing borrowers approaching the end of a fixed-rate period. The repricing covers multiple product types, including standard, Fee Saver and Premier Exclusive mortgages.
Existing HSBC customers switching products are benefiting from lower rates on two-year fixed Fee Saver mortgages at 95% LTV, a segment that has remained under pressure due to higher risk and limited choice in recent years. The reductions are particularly significant for borrowers refinancing with smaller deposits.
First-time buyers at HSBC are seeing cuts to two-year Fee Saver products at 90% and 95% LTV, as well as reductions on two- and five-year fixed Standard mortgages at 90% LTV. Five-year fixed Fee Saver deals at the same LTV have also been repriced lower, providing more long-term certainty for buyers entering the market.
The bank has extended its pricing changes to its Premier Exclusive range, reducing rates on two- and five-year fixed mortgages at 90% LTV. In addition, HSBC’s Energy Efficient Home mortgages, available on properties with an EPC rating of A or B, have been repriced across two- and five-year fixed terms at both 90% and 95% LTV.
Home movers are also included in HSBC’s latest round of cuts. Rates have been reduced on two-year fixed Fee Saver mortgages across LTV bands from 60% to 95%, alongside cuts to standard two-year fixed products between 60% and 90% LTV. Further reductions have been applied to High Value mortgages at 60% LTV and Premier Exclusive products across several LTV tiers.
Energy Efficient Home products for home movers have also been repriced, reinforcing HSBC’s strategy of supporting borrowers purchasing lower-carbon homes while remaining competitive on price.
Nicholas Mendes, mortgage technical manager at broker John Charcol, said Nationwide’s latest move felt like a clear signal to the rest of the market. He described the 3.50% two-year fixed rate for home movers at 60% LTV as a standout deal that is likely to attract strong interest.
Mendes added that the growing number of competitive cuts across major lenders shows that pricing pressure is continuing to build. He pointed to HSBC’s willingness to reduce rates across both first-time buyer and home mover ranges, including higher LTV products, as further evidence that competition is playing a central role in driving rates lower.
Overall, the latest repricing from Nationwide and HSBC suggests that lenders are becoming increasingly confident about market conditions. While affordability remains stretched for many buyers, the return of sub-3.5% deals at lower LTVs and improved options at higher LTVs may offer a timely boost to borrower confidence in the months ahead.
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