Nationwide has cut its mortgage rates by up to 0.25% in what brokers describe as a "welcome boost" for borrowers, with predictions of further reductions in the coming weeks. From Friday, June 26, the building society is reducing selected fixed rates across its range, including first-time buyer, home mover, existing customers moving home, remortgage, switcher, and additional borrowing products.
Rate reductions and market context
Nationwide’s two-year fixed rate has dropped from 4.29% to 4.19%, while its three-year fix has fallen from 4.49% to 4.44%. Five-year fixes now start from 4.31%. This follows a previous cut of up to 0.28% earlier in the week. The Mortgage Works has also reduced its new business rates by up to 0.25%.
Brokers say the reductions reflect stabilising swap rates and expectations of further Bank of England rate cuts. However, they caution that global and political factors—such as the Iran-US ceasefire and the anticipated replacement of Sir Keir Starmer by Andy Burnham as Prime Minister—could create volatility.
Broker reactions and advice
Manooch Suree, director of Zinga Financial Services, said: "Nationwide cutting selected fixed rates by up to 0.25% is a welcome boost for buyers and homeowners. With markets still reacting to inflation, interest rate expectations and global economic news, lender pricing can move quickly. If you’re buying, moving or remortgaging, it’s worth reviewing your options now."
Omer Mehmet, managing director of Trinity Finance, added: "With the oil price returning to pre-war levels, there is a sense of optimism in the air after a turbulent few months. When major lenders like Nationwide cut rates, others tend to follow."
Further cuts expected
Michelle Lawson, director of Lawson Financial, predicted more reductions: "As markets stabilise we will see some more of this in the coming weeks." However, Justin Moy of EHF Mortgages warned of unpredictability, stating: "The recommendation is to pick up a new deal as soon as possible, as the Middle East conflict can flare up at any time, and a change of prime minister can cause market jitters."
Rohit Kohli of The Mortgage Stop urged borrowers to act now: "We're getting a new prime minister. The Iran conflict is ceasefire on paper, knife-edge in practice. The market is moving in the right direction today—but any of those factors could change the picture within weeks."
Industry perspective
David Stirling of Mint Wealth said: "Nationwide is cutting fixed rates by up to 0.25% from tomorrow—and while that might not sound like cause for celebration—it is part of a broader repricing across the market. Swap rates are falling in anticipation of further Bank of England cuts. If your fixed rate deal is ending soon, now is the time to act."
Aaron Strutt of Trinity Financial expressed hope that other lenders would follow: "The bigger lenders are improving their rates more frequently at the moment, which is good news for home buyers and the lender's existing mortgage customers. Hopefully a few other big lenders will do the same thing soon."
