In a move set to boost the housing market, Nationwide Building Society has significantly reduced mortgage rates across several of its products. The changes, which will take effect on December 5, 2025, see rates dropping as low as 3.58%, the lowest the society has offered since September 2022. These cuts are expected to benefit a wide range of borrowers, including first-time buyers, home movers, and those looking to remortgage.
With the housing market showing signs of recovery, these rate reductions are part of a broader trend of falling mortgage rates in the UK. Mortgage brokers are optimistic that further rate cuts could follow, especially with the Bank of England expected to reduce interest rates in the near future. This could mark the beginning of a more dynamic housing market heading into 2026.
Nationwide’s Latest Rate Cuts: Key Highlights
According to Nationwide, the society’s lowest rate now stands at 3.58%, available on a two-year fixed deal for home movers with a 40% deposit. For a £200,000 mortgage over 25 years, this translates to a monthly payment of £1,010. This is the first time in over two years that Nationwide has offered such a low fixed rate, signalling a shift towards more affordable borrowing options.
The reduction extends across a range of mortgage products, with rate cuts of up to 0.21 percentage points. First-time buyers are set to benefit from these changes, with two-year fixed rates available at 3.92% for those with a 15% deposit. For buyers with a 5% deposit, rates start at 4.68%. Additionally, home movers with a 25% deposit can access a two-year fixed rate at 3.67%.
Nationwide is also offering competitive cashback deals. First-time buyers can receive up to £500 in cashback if they complete their mortgage with the society, while those purchasing energy-efficient properties may also qualify for additional rewards through the Green Reward scheme.
The Broader Picture: A Boost for the Housing Market
These latest cuts from Nationwide are part of a broader trend in the UK mortgage market, where rates have steadily declined over the past few months. Mortgage brokers and analysts suggest that this could be a sign of better conditions ahead for buyers.
Ben Perks, managing director at Orchard Financial Advisers, said he expects further rate reductions in the coming months. “It’s never too late in the year to make a push for customers and Nationwide are nailing it here.” he commented. “The Budget is out of the way and people are starting to lift their heads and look for deals again.”
Aaron Strutt of Trinity Financial echoed this sentiment, adding that lenders are continuing to compete by lowering rates. “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.” Strutt explained.
Experts are also predicting that these rate cuts, combined with a decrease in house prices over the latter half of 2025, could lead to a surge in market activity in 2026. Jonathan Hopper, a buying agent at Garrington Property Finders, stated that cheaper mortgages could help lift the market at the start of the new year.
Nationwide’s latest mortgage rate changes are a significant step in making homeownership more accessible for many people, especially first-time buyers and those looking to remortgage. With rates now at their lowest since 2022, borrowers are in a strong position to take advantage of competitive deals as we move towards the new year.
