Nationwide has cut rates across its fixed rate mortgage range for first-time buyers and those looking to move home, effective tomorrow (15 January).
These latest changes will see rates reduced by up to 0.20% across two-, three- and five-year fixed rate products with Nationwide’s lowest rate now standing at 3.50%.
For existing and new customers moving home, a two-year fixed rate at 60% LTV with a £1,499 fee is 3.50%, down from 3.58%, the three-year fixed rate at 60% LTV with a £999 fee is 0.13% lower at 3.62% and the three-year fixed rate at 90% LTV with no fee has been trimmed by 0.20% to 4.43%.
In addition, the two-year fixed rate at 85% LTV with no fee is 3.90%, down 0.11%.
Meanwhile, for first-time buyers a two-year fixed rate at 85% LTV with a £999 fee has been reduced by 0.17% to 3.75%, a two-year fixed rate at 60% LTV with a £1,499 fee is now 3.67%, down 0.16% and a five-year fixed rate at 90% LTV with a £999 fee is 0.07% lower at 4.22%.
First-time buyers also receive £500 cashback when they complete their mortgage with Nationwide.
First-time buyers and those moving home also receive cashback of up to £500 if they purchase an energy-efficient property through Nationwide’s Green Reward.
Nationwide head of mortgages Carlo Pileggi says: “Our first set of rate cuts this year will particularly support first-time buyers onto the property ladder as well as those looking to move to their next home. Rates starting at 3.50% for new and existing home movers will come as great news to those looking to move home in 2026.”
Also commenting, Trinity Financial product and communications director Aaron Strutt states: “Nationwide has made fixed rate price reductions swiftly following HSBC and NatWest’s latest price cut announcements. Nationwide is not messing about with its new market leading two-year fix at 3.5% and 3.70% five-year fix for home movers with 40% deposits.”
“We expected to start this year with the lenders cutting their rates and making them more attractive to borrowers and that’s exactly what is happening. Santander recently put its rates up and I suspect they will come down again soon.”
“These price cuts are good news for borrowers especially with so many looking to get on the property ladder this year or remortgage onto cheaper deals. It is shaping up to be a positive 2026 in terms of price reductions and the 7,000+ rates available through the banks and building societies. There is no doubt the mortgage lenders are open for business.”
John Charcol mortgage technical manager Nicholas Mendes adds: “Nationwide’s latest cuts feel like a real line-in-the-sand moment, and a benchmark other lender will be watching closely.”
“A 3.50 per cent two-year fixed for home movers at 60 per cent LTV is a strong headline rate and one that will turn heads. It is also encouraging to see another major lender following the sharper pricing we saw earlier in the week from Lloyds for Club Lloyds current account holders.”
“Competition is clearly building pace. HSBC has also been trimming pricing across parts of its home mover and first-time buyer ranges, including at higher LTVs, which reinforces that competition is still doing a lot of the heavy lifting here.”
Elsewhere, Clydesdale Bank has reduced its residential variable rates, also effective tomorrow.
The bank’s standard variable rate has been cut by 0.25% to 6.74%, while its offset variable rate has been lowered by 0.25% to 6.89%.
Clydesdale has also cut its two-year discounted SVR rates by 0.25%.
It also highlighted its refresh on large loan. Towards the end of last year, the bank also increased its maximum LTV for part C&I, part IO to 85% LTV, for loans up to £1.5 million.
This means up to 75% LTV can now be taken on an interest-only basis and any extra borrowing up to 85% LTV is take on C&I.
Clydesdale has also removed the 70% LTV restriction for downsizing on loans above £1.5m, so downsizing can now be used up to 75% LTV on an interest-only basis. Any borrowing above 75% LTV must be taken on C&I.
