The push to bring mortgage rates below the 4% mark has gathered pace once again, with Nationwide preparing to introduce further reductions later this week. The lender will roll out a series of cuts across its fixed-rate products from Friday, signalling fresh competition in the market.
Nationwide plans to trim some of its fixed-rate deals by as much as 0.19 percentage points. These changes will apply to selected two, three, and five-year fixes, giving borrowers a wider range of cheaper options as they look ahead to 2026.
Following these adjustments, Nationwide’s lowest available rate will settle at 3.60%. This rate will be offered to both new and existing customers who are moving home, provided they can put down a 40% deposit and opt for a two-year fixed product. The deal comes with a £1,499 fee attached.
For first-time buyers, Nationwide is also making a notable addition to its line-up. The lender is introducing a three-year fixed-rate mortgage with a 25% deposit requirement, priced at 4.21%. This product comes with no fee, making it more appealing to buyers looking to manage upfront costs.
Carlo Pileggi, Nationwide’s head of mortgage products, said the rate changes were designed to support a broad range of customers. He explained that reducing rates across multiple products should provide welcome relief to anyone looking to buy, move, or remortgage.
Other major lenders continue to adjust their pricing as well. Data from Moneyfactscompare.co.uk shows that Santander currently holds one of the very lowest rates in the mainstream market, offering a 3.55% two-year fix for borrowers with a 40% deposit.
Santander’s deal includes a £999 product fee and comes with a £250 cashback incentive. This combination of a low rate and bonus cash is likely to appeal to buyers wanting to minimise their early payments.
Rachel Springall, a finance analyst at Moneyfactscompare.co.uk, highlighted that these price changes are encouraging for borrowers. She noted that Nationwide’s new 3.60% deal places it among the most competitive lenders, offering rates that were hard to imagine only a few months ago.
Springall added that the overall tone across the mortgage sector has remained upbeat recently. With the Budget now announced, swap rates—an important factor in how lenders price mortgages—have steadied near their 30-day lows, suggesting more cuts may be possible.
She explained that lenders often delay making changes when political or economic uncertainty is high. Therefore, it was not unexpected that mortgage pricing remained relatively stable in the days leading up to the Budget.
Now that uncertainty has eased, Springall believes this is a good moment for buyers and homeowners to seek advice. With more than 40 lenders cutting fixed-rate products since the start of November, the choice of competitive deals is expanding quickly.
However, she also stressed that the headline rate alone should not determine a borrower’s decision. The lowest rate is not always the cheapest deal overall, especially when fees and incentives are factored in.
Borrowers are encouraged to look closely at product charges, cashback options, and long-term affordability. A seemingly higher rate could work out better once upfront costs are considered.
With more lenders expected to adjust their pricing in the coming weeks, competition is likely to intensify even further. This could benefit anyone preparing to purchase a home or remortgage before spring.
Overall, the latest wave of reductions from Nationwide adds another layer of momentum to the sub-4% mortgage battle. Borrowers may soon find even greater choice as other lenders look to keep pace with the movement in rates.
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