NATIONWIDE has announced it is reducing selected 2-, 3- and 5-year fixed rates by up to 0.15% for first-time buyers, home movers and people remortgaging. This puts Nationwide’s lowest rate at 4.48%.
Brokers welcomed the cuts, which follow in the wake of the Halifax cutting rates late last week, as a “flicker of light” but urged borrowers not to take continued reductions for granted.
First-time buyers will benefit from reductions of up to 0.10% across 2-, 3- and 5-year fixed rate products up to 95% loan-to-value (LTV), including:
- 5-year fixed rate at 90% LTV with a £999 fee is 4.82% (reduced by 0.07%)
- 3-year fixed rate at 60% LTV with no fee is 4.99% (reduced by 0.09%)
- 2-year fixed rate at 95% LTV with no fee is 5.34% (reduced by 0.10%)
First-time buyers will also receive £500 cashback when they complete their mortgage with Nationwide. First-time buyers and those moving home can also benefit from cashback of up to £500 if they purchase an energy-efficient property through Nationwide’s Green Reward.
Meanwhile, existing and new customers moving home will see reductions of up to 0.10% across 2-, 3- and 5-year fixed rate products up to 95% LTV, while remortgage borrowers will see reductions of up to 0.15% across 2-, 3- and 5-year fixed rate products up to 90% LTV.
The new rates will be effective from tomorrow, Tuesday 18 August.
Carlo Pileggi, Nationwide’s Head of Mortgage Products, said: “We’re pleased to announce a further set of rate cuts across our fixed mortgage range, building on the cuts we made at the beginning of August.
“These latest changes bring our lowest mortgage rate back below 4.5% for new and existing borrowers moving home, whilst also maintaining our support for first-time buyers with smaller deposits and those remortgaging.”
Thomas Boughton, Founder at London-based Artillium Real Estate Finance, said: “Nationwide reducing rates is an encouraging sign to kick off the week, following a number of lenders who made similar moves last week.
“Lenders are seemingly becoming more agile with their pricing, making reductions at a faster pace than they have historically following increases, which is another encouraging sign.”
Matt Coulson, Founder at Rickmansworth-based Heron Financial, described the cuts as “a flicker of light” but urged people to keep things in proportion.
He added: “A 0.15% cut from Nationwide, hot on the heels of Halifax, is welcome and it helps at the margin. It’s also small, and it comes after months of rates see-sawing.
“Only a few weeks ago the cuts we’d seen were wiped out almost overnight when the Middle East pushed swap rates up. So one or two lenders trimming is as much about them competing for business as it is a sign the whole market has turned.
“These moves are driven by swap rates rather than the Bank of England, and swaps can reverse as fast as they fall. The genuine turning point comes when inflation is clearly beaten and Threadneedle Street starts cutting with conviction, and we’re not there yet.
“The Bank held last month, some of its own members wanted rates higher, and inflation’s expected to climb again by year end. Encouraging, then, but I wouldn’t call the all-clear on the back of it.”
Rohit Kohli, Director at Romsey-based The Mortgage Stop, said the cuts are “another sign rates are moving in the right direction, for now”.
He continued: “The cuts follow Halifax just days ago, and two lenders moving the same way in quick succession tells you something.
“The market’s been slow, which means there could be some decent deals out there for buyers willing to move. My steer is simple: don’t wait around.
“Given how unpredictable 2026 has been, there’s no telling if that direction holds into next month or how quickly it will reverse.”
Jamie Elvin, Director at London-based Strive Mortgages, described the cuts as “yet another welcome signal that lenders are prepared to compete harder for borrowers”.
He added: “The real question is what happens next. If more competitors respond and start sharpening their own pricing, modest reductions could prove far more significant than the headline number suggests.
“We’re not in a mortgage price war yet, but it’s starting to feel like we’re heading in that direction.”
Andrew Montlake, CEO at London-based Coreco, added: “Homebuyers and those waiting to remortgage will be relieved to see a new wave of rate cuts filtering through the mortgage market, though how long this will last depends very much on global factors and conflicts.
“The capricious nature of swap rates has meant lenders have had to reprice both upwards and downwards more times than they would usually like to, but that does not mean that there is not an effective mortgage market.
“Taking the time to get advice now is paramount to help wade through the mortgage mist.”
