Several major mortgage lenders are reducing their rates on Friday, continuing a wave of cuts this week that signals a positive shift for borrowers. Nationwide Building Society, Halifax Intermediaries, and Santander are among those lowering fixed mortgage rates, providing support for first-time buyers and home movers.
Nationwide Leads with Rate Reductions
Nationwide Building Society announced it will cut rates across its fixed mortgage range for first-time buyers and home movers from Friday. The reductions amount to up to 0.25 percentage points across two, three, and five-year fixed-rate products. Notably, a five-year fixed-rate first-time buyer mortgage for borrowers with a 10% deposit will now be 5.25%, down by 0.25 percentage points, with a £999 fee. First-time buyers also receive £500 cashback upon completion. For home movers, a two-year fixed-rate mortgage at 60% loan-to-value (LTV) is available at 4.50%, reduced by 0.16 percentage points, with a £1,499 fee.
Carlo Pileggi, Nationwide’s head of mortgage products, said: “We’re delighted to be able to make cuts to our mortgage rates to support both first-time buyers and those looking to move to their next home. These changes apply across those ranges, with some of our largest cuts being made on higher loan-to-value mortgages, which will benefit first-time buyers looking to get onto the property ladder.”
Other Lenders Follow Suit
Halifax Intermediaries will also reduce rates by up to 0.15 percentage points on fixed-rate mortgages for home movers and first-time buyers from Friday. Earlier this week, First Direct lowered rates across dozens of two and five-year fixed mortgage products, with decreases of up to 0.38 percentage points. Liam O’Hara, head of mortgages at First Direct, said: “We are committed to supporting our customers on their house purchase journey and continue to review our pricing regularly to ensure the best value we can for all our customers.”
HSBC UK reduced rates across its mortgage products on Thursday, with reductions of up to 0.25 percentage points. The bank’s deals include a five-year mortgage for first-time buyers with a 15% deposit at 5.04%, down by 0.13 percentage points, with a £999 fee and £750 standard cashback, increasing to £1,500 for energy-efficient homes. Virgin Money also cut some mortgage rates from Thursday, including for home buyers and those remortgaging, as well as buy-to-let products.
Santander announced plans to cut rates on lower deposit first-time buyer and home mover mortgage products from Friday. The reductions include its 98% LTV My First Mortgage product, which is reducing by 0.25 percentage points to 5.60%. Santander will also launch first-time buyer products, including a 5% deposit three-year fixed-rate mortgage at 5.55% with no fee and £250 cashback. Barclays and Skipton Building Society reduced their mortgage rates on Wednesday.
Market Context and Expert Views
These rate cuts come as swap rates, which lenders use to price mortgages, have been easing. However, the conflict in the Middle East has caused market volatility and pushed up expectations around interest rates staying higher for longer. Despite recent reductions, typical fixed mortgage rates remain elevated compared to the start of March. The average two-year fixed-rate homeowner mortgage was 4.83% at the start of March and stood at 5.82% on Thursday morning, according to Moneyfacts. The average five-year fixed-rate mortgage has risen from 4.95% to 5.72% over the same period.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, described Nationwide’s cuts as a “positive signal” for borrowers. She said: “New buyers usually have very little to put down as a deposit, so it’s great to also see cuts to deals at higher loan-to-values. Nationwide will now offer some of the lowest fixed rates across the market, such as its two-year fixed deal at 60% LTV priced at 4.50% for home movers, a highly attractive rate in the current market.” She added that last week’s rate moves led to the first week-on-week fall in average fixed rates since the Middle East conflict began, and that “borrowers will hope the positive sentiment to cuts continues.”
David Fell, lead analyst at Hamptons, noted: “The downward drift in mortgage pricing over the last week or so is a reflection of a significant shift in market sentiment. In late March, swap rates had priced in the possibility of three interest rate hikes by the end of the year. However, that outlook has since shifted significantly, with the market now pricing in just over one hike by the end of 2026. This pivot has given lenders breathing room to make rate reductions and pass savings on to borrowers, first-time buyers in particular.”
