Unews World
Nationwide Building Society is implementing mortgage rate cuts of up to 0.25 percentage points, with the new rates taking effect from Wednesday.
The reductions span a range of fixed-rate products, including two, three, five, and 10-year deals.
Among the new offerings, a two-year fixed-rate home mover mortgage for borrowers with a 40 per cent deposit will see its rate decrease by 0.16 percentage points to 3.64 per cent.
This particular deal is subject to a £1,499 fee.
Similarly, a two-year fixed-rate remortgage option for those with a 40 per cent deposit will be available at 3.79 per cent, reflecting a 0.15 percentage point reduction, also incurring a £1,499 fee.
Products featuring this £1,499 fee require a minimum loan size of £300,000.
Furthermore, existing Nationwide customers nearing the end of their current mortgage deals can secure a two-year fixed rate of 4.79 per cent with a 10 per cent deposit. This fee-free option represents the maximum 0.25 percentage point reduction announced.
Carlo Pileggi, Nationwide’s head of mortgage products, said: “We’re making rate cuts across the majority of our fixed rate mortgage range with a number of sub-4 per cent products.”
The reductions will be made ahead of the next Bank of England base rate decision on Thursday.
Moneyfactscompare.co.uk said earlier this week that average mortgage rates dipped back below 5 per cent in November, after rising above that point last month.
The website said that before September 2025, the average mortgage rate had not dipped below 5 per cent since September 2022.
HSBC UK announced on Monday that it had introduced a new maximum mortgage loan-to-income (LTI) ratio of up to 6.5 times annual income for its Premier customers.
To qualify for HSBC Premier, customers must have an annual income of at least £100,000 paid into an HSBC Premier account, or hold £100,000 or more in savings or investments with the bank.
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And Nationwide said on Monday that it was expanding its interest-only mortgage offering, as well as widening the range of repayment options that it will accept beyond the sale of the main residence, to include UK-based savings, investments, pension funds and other properties.
Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Swap rates are currently sitting around their 30-day lows, so it is possible that more reductions could follow suit, however with the next base rate decision looming it is not yet certain how the swap markets will react.
“The borrowers that can afford a 40 per cent deposit may certainly find the headline rate appealing, and if they make regular overpayments on a low rate, that could set them up nicely for when they come to refinance.
“Remortgage customers will also feel the relief as they could see their monthly repayments drop significantly.”
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