Nationwide Cuts Mortgage Rates Ahead of Bank of England Decision
Nationwide Building Society has just made a move that’s likely to catch the attention of homebuyers and homeowners alike. Starting this Wednesday, the UK’s largest building society is rolling out lower mortgage rates — some dropping to as low as 3.64%. The reductions apply across two-, three-, five-, and ten-year fixed-rate products, and they’re coming just days before the Bank of England announces its next base rate decision.
So, here’s what’s changing. Nationwide will now offer a two-year fixed-rate mortgage for home movers with a 40% deposit at a rate of 3.64%, trimmed down by 0.16 percentage points. That deal, however, comes with a £1,499 fee and a minimum loan size of £300,000. For those looking to remortgage under similar terms, the new rate will be 3.79%, reduced by 0.15 points — again, with the same £1,499 fee.
There’s also good news for existing Nationwide customers nearing the end of their deals. A two-year fixed rate for borrowers with just a 10% deposit will now sit at 4.79%, down by a quarter of a percentage point — and this one comes with no fee attached.
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Carlo Pileggi, who heads mortgage products at Nationwide, explained that the society is “making rate cuts across the majority of our fixed rate mortgage range, with a number of sub-4% products.” Essentially, this is Nationwide signaling confidence — and perhaps a bit of healthy competition — in a market that’s been struggling under the pressure of high borrowing costs.
The timing is particularly interesting. These rate cuts come right before the Bank of England’s next move on interest rates, which many analysts expect to remain steady for now. Data from Moneyfactscompare.co.uk shows that average mortgage rates have dipped back below 5% in November — something that hadn’t happened since September 2022 before briefly climbing above that mark last month.
Meanwhile, other banks are making adjustments too. HSBC UK recently introduced a new rule allowing its Premier customers to borrow up to 6.5 times their annual income — but to qualify, customers need at least £100,000 in income or assets with the bank.
Nationwide, for its part, isn’t just cutting rates. It’s also broadening its interest-only mortgage options and now accepting a wider range of repayment sources — including savings, investments, pension funds, and other UK properties.
Experts say these moves could bring a wave of relief. As Moneyfactscompare’s Caitlyn Eastell pointed out, swap rates are sitting near their 30-day lows, suggesting more lenders might follow with rate cuts soon. For those who can manage larger deposits, these new sub-4% deals could make a real difference — and even help set them up well when it’s time to refinance.
In short, Nationwide’s move adds fresh optimism to the housing market — just when borrowers have been looking for a break.
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