Nationwide cuts mortgage rates

Nationwide will give a boost to home owners and first time buyers by cutting up to 0.2% percentage point for new and existing customers.

Nationwide said they are bringing the mortgages down to the lowest 3.5% for those who have a deposit of 40% and will be charged a £1,499 fee.

First time buyers will have rates cut by up to 0.17% for two and five year fixed rate mortgages, with up to 95% loan to value (LTV).

Carlo Pileggi, Nationwide’s head of mortgage products, said, “Our first set of rate cuts this year will particularly support first-time buyers onto the property ladder as well as those looking to move to their next home.

“Rates starting at 3.50% for new and existing home movers will come as great news to those looking to move home in 2026.”

Aaron Strutt of brokers Trinity Financial said, “Nationwide is not messing about with its new market leading two-year fix at 3.5% and 3.70% five-year fix for home movers with 40% deposits.

“We expected to start this year with the lenders cutting their rates and making them more attractive to borrowers and that’s exactly what is happening. Santander recently put its rates up and I suspect they will come down again soon.

These price cuts are good news for borrowers especially with so many looking to get on the property ladder this year or remortgage onto cheaper deals. It is shaping up to be a positive 2026 in terms of price reductions and the 7,000 plus rates available through the banks and building societies. There is no doubt the mortgage lenders are open for business.”