BORROWERS have been given a festive boost as Nationwide cuts fixed mortgages rates to as low as 3.58%.
From tomorrow, Friday 5 December, Nationwide has announced it is reducing selected fixed rates by up to 0.21%.
This includes rates across its First Time Buyer, Home Mover, Existing Customers Moving Home and Remortgage products — as well as its Switcher and Additional Borrowing ranges.
Carlo Pileggi, Nationwide’s Head of Mortgage Products, said: “We’re making cuts across our fixed rate mortgage range with even more of our rates now below 4%.
These latest changes, which follow hot on the heels of the wide-ranging rate cuts we made at the end of last week, demonstrate that Nationwide remains focused on offering competitive rates to first-time buyers, home movers and those looking for a new deal.”
Brokers said lenders are already pricing in a base rate cut by the Bank of England later this month.
Shaun Sturgess, Director at Swansea-based Sturgess Mortgage Solutions, said: “It’s great to see some festive cheer for borrowers as Nationwide become one of only two lenders now offering sub-3.6% purchase rates, with Santander the other lender offering 3.55%.
“This is a really welcome move and, in my view, another clear sign that a Bank of England base rate cut could be just around the corner.
“Nationwide aren’t hanging about, they’re getting ahead of the pack and looking to start 2026 with a bang. What’s particularly positive is that the recent Budget doesn’t seem to have knocked lenders’ confidence to keep lending competitively. That’s exactly the kind of momentum the market needs going into the New Year.”
Daniel Hobbs, CEO at Rayleigh-based New Leaf Distribution, said it was high fives all round.
He added: “High fives among borrowers as we see a 2-year fixed rate at 3.58%. You get the feeling it could be an unusually busy December on the mortgage front and that lenders could be slogging it out in the next fortnight.
“A lot of pent-up demand is now feeding through into the market after so many people put their plans on ice in the lead up to the Budget and lenders are keen to hoover up what business they can. If we get a rate cut this month, which markets are betting on, it could be a strong start to 2026.”
Ben Perks, Managing Director at Stourbridge-based Orchard Financial Advisers, said he has high hopes for 2026.
He added: “It’s never too late in the year to make a push for customers and Nationwide are nailing it here. Why wait until January?
“The Budget is out of the way and people are starting to lift their heads and look for deals again. Hopefully, a base rate drop this month will see mortgage rates edge down a little further, then we’re off to a flyer in 2026.”
Jack Tutton, Director at Fareham-based SJ Mortgages , said he expects the Bank of England will cut its base rate.
He continued: “Significant moves from Nationwide to help mortgage holders ahead of the festive period, one that is for most the costliest times of the year.
“Such bold cuts suggest that Nationwide feel that a base rate cut will be coming a week before Christmas when the Bank of England meet next, a further positive sign for what 2026 may hold for the mortgage market. The hope will be that these reductions will spark some much needed competition and drive other lenders to follow Nationwide’s lead.”
Riz Malik, Director at Southend-on-Sea-based R3 Wealth, agreed that 2026 could see some more cuts.
He added: “Nationwide wants to start 2026 with a bang, and it looks like it will be a very promising year for mortgage lending. With rate reductions and criteria loosening, borrowers could be in for some good news for once.”
Elliott Culley, Director at Hayling Island-based Switch Mortgage Finance, said the Budget was not as bad as many thought.
He continued: “Mortgage lenders are starting to reduce rates due to the reduction in SWAP rates seen at the start of this week. It is likely a base rate cut is on the horizon after the Bank of England meeting was fairly positive on their thoughts on rates in 2026.
“The Budget has not had an adverse effect on this, so its likely rates will start to come down based on current predictions.”
Aaron Strutt, Product and Communications Director at London-based Trinity Financial, hoped the 3.5% barrier could be breached soon.
He added: “There is no doubt that the Budget uncertainty slowed the market, but the lenders have continued to lower their mortgage rates and keep the price war going. While Nationwide’s new deals are not quite market leaders, they are not far off, which is good news for borrowers either keen to buy or remortgage soon.
“The average homeowner coming off a fixed rate in the next two years would see their mortgage repayments increase by 8% or £64, and some could face larger rises.
“A third of mortgage accounts—around three million households—are expected to see their payments fall over the next three years. With multiple Bank of England base rate changes expected, hopefully more rates will get closer to 3.5% over the next few months.”
Photo by Tessa Edmiston on Unsplash
