Friday will see an update from the Nationwide Building Society
Britain’s largest building society has unveiled a fresh overhaul for borrowers. It says reductions are taking effect from Friday that could save hundreds of pounds.
Nationwide Building Society confirmed it is slashing rates by up to 0.25 percentage points across a broad selection of fixed deals for both first-time buyers and home movers. The change means its lowest rate now drops to 4.50%, signalling that lenders are continuing to ease pricing amid more favourable market conditions.
The latest development adds to a growing pattern of lenders cutting rates as competition heats up. TSB has announced reductions of up to 0.8 of a percentage point on new deals, while Santander has made cuts across its range. HSBC, Barclays and Virgin Money have also lowered their rates, and brokers have urged borrowers to capitalise on the opportunity.
What’s changing from Friday
The Nationwide BS reductions apply across two, three and five-year fixed deals, including:
- First-time buyer five-year fix (90% loan-to-value): 5.25% (down 0.25%)
- Two-year fix (60% LTV): 4.66% (down 0.24%)
- Three-year fix (80% LTV): 5.05% (down 0.25%)
- Home movers two-year fix (60% LTV): 4.50% (down 0.16%)
First-time borrowers can also receive £500 cashback, with a further £500 on offer for energy-efficient properties under its Green Reward scheme.
What it means in cash terms
Although a 0.25% reduction may appear modest, the effect on monthly repayments is significant. For instance, a typical buyer taking out a £250,000 mortgage over 25 years could see monthly payments drop by approximately £35 to £40.
That works out to annual savings of around £420 to £480, or up to £2,400 over a five-year fixed deal. For larger loans, the benefit is even more substantial. Someone borrowing £350,000 could save closer to £55 a month, or £660 a year.
Help for first-time buyers
The most significant reductions have been concentrated on higher loan-to-value deals – frequently used by first-time buyers with smaller deposits. Carlo Pileggi, head of mortgage products at Nationwide, said: “We’re delighted to be able to make cuts to our mortgage rates to support both first-time buyers and those looking to move to their next home.”
He added that some of the largest reductions are aimed at those trying to get onto the housing ladder. Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, told Newspage: “Lenders are clearly looking to encourage borrowers and, based on this evidence, feel that the outlook is better than just a few weeks ago.
“The good news here is that both property buyers and remortgage borrowers see a benefit, and so they may want to grab the opportunity while they can.”
Ben Perks, Managing Director at Stourbridge-based Orchard Financial Advisers, warned borrowers to move quickly or face missing out.
“My message would be to act fast and secure rates while you can. After all, we’re only one Trump Truth Social post away from the next hike.” he said.
