Nationwide cuts mortgage rates as price war ramps up between lenders
Nationwide is cutting its mortgage rates once again with brokers welcoming competition heating up between lenders. Britain's biggest building society is making further rate cuts across fixed rate mortgage deals, and is also cutting rates on selected tracker mortgage products from 8th July 2026.
It continues a run of form from the lender, which opted to cut home loan prices three times last month.
Nationwide's mortgage rates will be reduced by up to 0.19 percentage points across two, three, five and ten-year fixed rate products, while rates will be cut by up to 0.12 percentage points on selected two-year tracker products.
Among the deals is a market leading 4.49 per cent five year fix for households remortgaging with at least 40 per cent equity. It comes with a £999 fee making it marginally better value than other lenders.
On a £200,000 mortgage being repaid over 25 years that would equate to £1,110 a month.
There are also some best buy deals for first-time buyers including a 4.61 per cent five-year fix for those buying with a 10 per cent deposit, again with a £999 fee.
First-time buyers also receive £500 cashback when they complete their mortgage with Nationwide.
In terms of its lowest rates, Nationwide is also bringing out a 4.34 per cent three-year fix and a 4.26 per cent five-year fix, although its lowest 4.19 per cent two-year fix is staying the same. The new rates are effective from today and apply across first-time buyer, home mover, remortgage and switcher products.
The announcement coincides with similar moves by other lenders. This includes, Virgin Money (now part of Nationwide) shaving up to 0.16 per cent off remortgage two-year fixed rates.
BM Solutions and Halifax are also both trimming up to 0.15 per cent on their core ranges from Tuesday too, and Halifax are layering in a 0.2 per cent discount for Lloyds Premier customers on top.
'Six lenders repricing inside 24 hours tells you nobody wants to be left looking expensive going into the second half of the year, particularly with remortgage volumes picking up,' says Nicholas Mendes of broker John Charcol.
'For borrowers, the message is simple. Trying to time the absolute bottom of the market is impossible, and waiting for rates to fall further can easily cost more than it saves. 'Anyone remortgaging should secure a rate now, as most lenders will let you switch to a lower deal if pricing improves before completion, so you get the protection without losing the upside.'
More cuts to come say brokers
Brokers across the mortgage industry welcomed all the cuts with Nationwide's announcement likely to make further waves across the market.
Shaun Sturgess, director at Swansea-based Sturgess Mortgage Solutions, said 'this is a fantastic start to the week and may well set the tone for more cuts in the days and weeks ahead.' He added: 'Rates are still not what they were before the Middle East war but they're moving in the right direction and momentum is starting to grow.'
Brokers think if swap rates remain favourable, more lenders are likely to review their pricing.
Rather than following the base rate, fixed mortgage rates are largely based on Sonia swap rates, which track future interest rate expectations - and these are falling.
This means that while the Bank of England has held interest rates at 3.75 per cent since December last year, mortgage rates can still go up and down based on what the financial markets expect will happen to interest rates in the future.
Both two-year swaps and five-year swaps have dipped below 4 per cent. They have been hovering between 4 and 4.5 per cent for much of the last four months.
'The lowest rate doesn't always mean the best mortgage, but more competition almost always benefits borrowers,' said Tracey Dixon, owner at Cardiff-based Pure Mortgage and Protection.
'Nationwide's latest rate cuts are encouraging and reflect the increasingly competitive mortgage market. If swap rates remain favourable, I'd expect other lenders to review their pricing, too.
'The key message for borrowers is not to assume their existing lender has the best deal, but to review the whole market before making a decision.'
Harry Goodliffe, director at Winchester-based HTG Mortgages added that 'Mortgage lenders are clearly back in competition mode.'
'Falling swap rates have given lenders more room to adjust their pricing, and Nationwide is making the most of it,' said Goodliffe. 'I don't think it will be the last lender to cut rates, either.
'As long as swap rates remain relatively stable and there are no nasty inflation surprises, I'd expect this gradual pattern of rate reductions to continue, at least in the short term.'