Nationwide Building Society is cutting mortgage rates by up to 0.25 percentage points across selected fixed deals, with the lowest rate dropping to 4.50%, according to multiple reports. The reductions apply to two, three and five-year fixed deals. TSB has announced reductions of up to 0.8 percentage points on new deals, while Santander has made cuts across its mortgage range. HSBC, Barclays and Virgin Money have also lowered their rates, according to reports.
The most significant reductions are concentrated on higher loan-to-value deals, frequently used by first-time buyers. For example, a first-time buyer five-year fix at 90% LTV now stands at 5.25%, down 0.25%. A typical buyer with a £250,000 mortgage over 25 years could see monthly payments drop by approximately £35 to £40, according to reports. Annual savings could be around £420 to £480, or up to £2,400 over a five-year fixed deal. Someone borrowing £350,000 could save closer to £55 a month, or £660 a year.
First-time borrowers can receive £500 cashback, with an additional £500 for energy-efficient properties under the Green Reward scheme. Brokers have urged borrowers to capitalise on the opportunity. The rate cuts provide a window for borrowers to secure lower monthly payments, especially for those with higher loan-to-value ratios. The exact timing of the rate changes and how long they will be available remain unclear. The current average mortgage rate in the UK for comparison is not specified in reports. It is also unknown whether other lenders will follow Nationwide's lead with further cuts.