13 Nov 2025 Cheltenham
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Fixed-rate mortgages priced below 4% are back on sale for homebuyers for the first time since February, with brokers hoping it is “a sign of things to come”.
Nationwide Building Society said from Wednesday it would be cutting rates by up to 0.25 percentage points across its two, three and five-year fixed mortgage products.
As part of the changes, it will be offering a five-year fixed deal priced at 3.99%. This will be available to new customers buying a home who are looking to borrow up to 60% of the property’s value.
The last time a five-year fixed-rate deal priced at below 4% was available was at the end of February.
In recent days, lenders including HSBC and Halifax have been gradually reducing the cost of their new fixed deals, with some mortgage brokers heralding what may be the start of a “summer of savings” for homebuyers and homeowners looking to remortgage.
Nicholas Mendes, a mortgage technical manager at the broker John Charcol, said: “Nationwide is the first lender to finally breach the 4% benchmark following recent weeks of downward repricing. This is fantastic news for borrowers and signifies a significant change in the mortgage landscape after recent months of increased rates.”
He added that the 3.99% rate was for house purchases only, and those looking to remortgage would need to wait a bit longer.
“We will likely see the likes of HSBC look to reprice again to ensure they remain ahead of the pack,” Mendes added.
Mortgage costs have endured a rollercoaster ride over the last two years. The fallout from Liz Truss’s September 2022 mini-budget helped push up the cost of new fixed rates. At the start of this year, they dropped sharply, only to start creeping back up before falling once again.
Emma Jones, the managing director at the broker When The Bank Says No, said: “This is a big moment … Lenders seem to be pricing in a [Bank of England] base rate cut in August or, if not, not long after. If that happens, then we could see rates continue to drop.”
Henry Jordan, Nationwide’s director of home, said the latest rate cuts, including the reintroduction of a sub-4% deal, “further reinforce our position as one of the most competitive lenders in the market”.
Article from The Guardian
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