Nationwide announces big change for customers ‘starting Wednesday’ | Personal Finance | Finance
Nationwide Building Society is reducing mortgage rates by as much as 0.25 percentage points from Wednesday. The cuts apply to two, three, five and 10-year fixed-rate products.
The new offerings will feature a two-year fixed-rate home mover mortgage for borrowers with a 40 per cent deposit, priced at 3.64 per cent, down by 0.16 percentage points. The mortgage carries a £1,499 fee.
The building society will also introduce a two-year fixed rate remortgage deal at 3.79 per cent, reduced by 0.15 percentage points, for borrowers with a 40 per cent deposit. This mortgage also has a £1,499 fee. Products with a £1,499 fee require a minimum loan of £300,000.
Nationwide will additionally offer a two-year fixed rate for borrowers with a 10 per cent deposit at 4.79 per cent, cut by 0.25 percentage points. The deal, which is fee-free, is accessible to existing Nationwide customers approaching the end of their current mortgage term.
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% products.”
The cuts come ahead of Thursday’s Bank of England base rate decision. Earlier this week, Moneyfactscompare.co.uk reported that average mortgage rates dropped back below 5 per cent in November, having risen above that threshold last month.
The website stated that prior to September 2025, the average mortgage rate hadn’t fallen below 5% since September 2022. On Monday, HSBC UK announced a new maximum mortgage loan-to-income (LTI) ratio of up to 6.5 times annual income for its Premier customers.
To be eligible for HSBC Premier, customers must have an annual income of at least £100,000 paid into an HSBC Premier account, or hold savings or investments with the bank amounting to £100,000 or more.
Furthermore, Nationwide announced on Monday that it was broadening its interest-only mortgage offering, as well as expanding the range of repayment options 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% 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.”
