Nationwide has made its third round of rate cuts in three weeks and is now offering a sub-4% deal for first-time buyers.
When the cuts of up to 0.30% come into effect on Wednesday (7 May) the mortgage lender’s lowest rate will be 3.84%.
This price is available on two- and five-year deals for existing and new customers moving home who have at least 40% to put down as a deposit.
But there are also some tempting rates for first-time buyers. Nationwide said for the first time since September 2024 it will offering sub-4% rates for those stepping onto the property ladder.
The lowest first-time buyer rate is 3.94% and this is available on a two-year fixed rate product at 60% loan-to-value (LTV) with a £1,499 fee. First-time buyers can also get 3.99% on the same 60% LTV, two-year fixed rate product but with a lower £999 fee.
It has also cut rates for first-time buyers with smaller deposits.
Carlo Pileggi, senior manager – mortgages at Nationwide, said: “We’re pleased to be able to make our third rate cut in three weeks as we strive to remain one of the most competitive lenders in the market.
“This latest round of changes includes us offering sub-4% rates for first-time buyers, as well as reducing rates across our Helping Hand mortgages, which enable eligible first-time buyers to borrow up to six times their income up to 95% loan-to-value.”
Mortgage experts say the rate cuts bode well for borrowers hoping for competitive deals when they take out their next deal.
Ranald Mitchell, director at Charwin Mortgages, speaking via Newspage, said: “Nationwide haven’t just trimmed rates, they’ve taken a sledgehammer to them, with cuts of up to 0.3%.
“It’s a clear sign that the mortgage market is swinging back in favour of borrowers as lenders fight for attention. But for those still stalling, now’s the time to act.
“These deals won’t hang around forever, and rates can just as easily rise as fall. If you’re unsure, consider a shorter fixed term, as it’s a smart way to hedge your bets while still cashing in on today’s momentum.”
There are strong indications the Bank of England will cut interest rates on Thursday (8 May) and some brokers think this may prompt more lenders to reduce prices.
Katy Eatenton, mortgage & protection specialist at Lifetime Wealth Management, speaking to Newspage, said: “Another week, another set of decent rate cuts from a leading mortgage lender.
“With the Bank of England widely expected to cut the base rate on Thursday, more cuts could follow in the days ahead. Things are brightening up for the UK’s borrowers as we head into the summer.”
Pete Mugleston, mortgage advisor & managing director at Online Mortgage Advisor told Newpage: “If the Bank of England cuts the base rate, as expected on Thursday, we’ll likely see further cuts in the weeks ahead.
“This does beg the question of whether borrowers should wait to see if they decline further, but the trend is only going in one direction at present.”
