Nationwide has announced new mortgage rate cuts for new and existing customers, starting from 3.99%

Nationwide will be reducing rates by up to 0.25 percentage points across selected two, three and five-year fixed rate products with the new rates effective from 28 February.

Nationwide’s lowest mortgage rate now stands at 3.99%, which is available to existing customers looking to move to a new deal and to new customers looking to remortgage.

The new rates include for existing Nationwide customers coming to the end of their current mortgage deal): reductions of up to 0.17% across selected two, three and five-year products up to 90% LTV with rates starting from 3.99%.

These include a five-year fixed rate at 60% LTV with a £999 fee is 3.99% (reduced by 0.13%)

For remortgage there are reductions of up to 0.15% across two, three and five-year fixed rate products up to 90% LTV with rates starting from 3.99%. These include a two-year fixed rate at 60% LTV with a £1,499 fee1 is 4.09% (reduced by 0.15%).

For first-time buyers, Nationwide has announced reductions of up to 0.25% across two, three and five-year fixed rate products up to 95% LTV, including a three-year fixed rate at 75% LTV with a £999 fee is 4.39% (reduced by 0.05%)

Additional borrowing rates are being cut by up to 0.15% on two, three and five-year fixed products up to 90% LTV, with rates starting from 3.99%.

Commenting on the rate changes John Charcol mortgage technical manager Nick Mendes said: “Nationwide’s latest rate update brings a mix of adjustments, but the real talking point is the introduction of sub-4% mortgage rates.

“Fixed-rate mortgages are continuing to edge lower, mainly due to a notable drop in swap rates, particularly on two- and five-year terms. These have now fallen and remain stable below 4%, marking a significant shift from last month.”

However, the gap between two-year and five-year swaps remains tight, making it difficult for lenders to confidently introduce sub-4% deals, especially on shorter fixes.

Santander launched a two-year fixed rate below 4%, but it comes with a £1,999 product fee – a clear example of how lenders are structuring deals to balance risk and profitability.”

Mendes added that while further reductions were possible, much depended on whether swap rates remained steady.

“While a lower interest rate might grab attention, borrowers need to consider the overall cost of the mortgage over the fixed period. At first glance, Nationwide’s lower rate seems like the better deal. However, when factoring in total costs over five years—including repayments and fees—HSBC actually works out £102 cheaper.”