In a significant pre-Christmas move, Nationwide Building Society has announced a series of cuts to its fixed mortgage rates, with some deals now starting from just 3.58%.
Rate Cuts Across the Board
The changes, which came into effect on Friday 5 December 2025, see selected fixed rates reduced by up to 0.21%. The reductions apply across a wide range of the lender's products, including those for First Time Buyers, Home Movers, and Existing Customers Moving Home. Nationwide's Remortgage, Switcher, and Additional Borrowing ranges have also been included in the latest round of cuts.
Carlo Pileggi, Nationwide’s Head of Mortgage Products, stated: "We’re making cuts across our fixed rate mortgage range with even more of our rates now below 4%. These latest changes demonstrate that Nationwide remains focused on offering competitive rates to first-time buyers, home movers and those looking for a new deal."
Expert Reaction: A Sign of Confidence
Mortgage industry experts have welcomed the move, seeing it as a positive signal for the housing market. Shaun Sturgess, Director at Swansea-based Sturgess Mortgage Solutions, noted that Nationwide is now one of only two major lenders offering purchase rates below 3.6%, alongside Santander.
"This is a really welcome move and, in my view, another clear sign that a Bank of England base rate cut could be just around the corner," Sturgess said. "Nationwide aren’t hanging about, they’re getting ahead of the pack... What’s particularly positive is that the recent Budget doesn’t seem to have knocked lenders’ confidence."
Pent-Up Demand and a Busy December
Daniel Hobbs, CEO at Rayleigh-based New Leaf Distribution, suggested the aggressive pricing could lead to an unusually active end to the year for the mortgage market. "High fives among borrowers as we see a 2-year fixed rate at 3.58%," he commented.
Hobbs added: "A lot of pent-up demand is now feeding through into the market after so many people put their plans on ice in the lead up to the Budget and lenders are keen to hoover up what business they can. If we get a rate cut this month, which markets are betting on, it could be a strong start to 2026."
The rate reductions follow another series of cuts made by Nationwide at the end of the previous week, indicating a sustained push to attract borrowers as the new year approaches.
