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Nationwide launches 5-year fixed rate at 3.78%: "These are rates we haven't seen for at least two years"

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ended 21. August 2024

Nationwide has this afternoon announced reductions to their fixed rates by up to 0.26%, with fixed rates now priced from 3.78%. Meanwhile, MPowered Mortgages has also weighed in with equally important rate cuts, with fixed rates from as little as 4.01%. Newspage asked brokers for their thoughts, below.

14 responses from the Newspage community

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Tony CastleVerified
Managing Director at PFG Mortgages
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It's incredible to see rates at 3.78%. Many thought we may not see this until 2025, but they have been proven wrong. This is a huge boost for homeowners and home movers alike. These rate reductions are sprinkling some serious stardust onto the housing market.
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Justin MoyVerified
Managing Director at EHF Mortgages
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These are significant headline-grabbing rates from Nationwide. Most of all, these are rates we haven't seen for at least two years. They will give borrowers plenty of confidence to get back into the property market. Lenders of all shapes and sizes help deliver good news and positivity, with both Nationwide and MPowered delivering by the bucket load.
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Gabriel McKeownVerified
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
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The recent mortgage rate cuts by Nationwide signal a pivotal shift in the UK mortgage market, driven by broader economic trends as the Bank of England hints at further interest rate cuts to manage inflation. The reintroduction of sub-4% fixed-rate mortgages will begin to offer financial relief as many transition from historically low rates. These reductions should help to drive increased affordability and market activity in the housing sector, with the potential for further reductions leading to more competitive mortgage offerings across the board. However, the prevalence of mortgage rate reductions across the wider sector hinges on continued economic stability and the Bank of England's future monetary policy.
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Andrew MontlakeVerified
Managing Director at Coreco
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This move from Nationwide marks a new low point in the 5-Year Fixed Rate battle and shows that the mortgage rate war is now in full flow as lenders look to end the year on a high. Products such as these will help convince prospective borrowers who have sat on their hands for a while to plunge into the housing market before it becomes too hot and prices inevitably begin to strengthen once more, especially in high-demand areas. The game is on, especially with smaller lenders such as MPowered also shaving their rates.
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Emma JonesVerified
Managing Director at Whenthebanksaysno.co.uk
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Lenders large and small are really competing for market share at the moment. This 5-year fixed rate is throwing the gauntlet down to the competition and is setting the property market up for a very busy end to 2024.
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Craig FishVerified
Director at Lodestone Mortgages
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Summer just got a whole lot hotter as Nationwide race to the top of the list by offering the lowest 5-year fixed rate on the market. This really stirs up the competition. Great news for those moving home. The question now is, how long will they stay there?
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Darryl DhofferVerified
Founder at The Mortgage Geezer
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Nationwide’s groundbreaking decision to slash interest rates feels a lot like a Back To The Future scene. Their competitors are scrambling to keep up, but their desperate attempts to match their innovative pricing strategy are futile. The market has spoken, and it’s clear that Nationwide is the only lender that truly understands the needs of homebuyers. As for NatWest, their outdated direct-to-consumer model is doomed to fail. It’s a shame that they’re unable to recognize the value of Nationwide's forward-thinking approach - maybe they need a trip in the Delorean.
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Ross LaceyVerified
Director & Independent Financial Adviser at Fairview Financial Management
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This is great to see, and long may the current trend of daily notifications from lenders reducing rates continue!

That being said, it's important for us as brokers to keep on top of deals we already have locked in for clients. Whether they are remortgaging or buying a new property, there's potential opportunities to lock in lower rates for them before completion which is always welcome.
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Rohit KohliVerified
Director at The Mortgage Stop
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With these rates, this 5-year fixed is one of the lowest on the market and, with it, Nationwide takes the price war head-on and is challenging other leaders to match them.
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Michelle LawsonVerified
Director at Lawson Financial
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The race to the bottom of the 5-year fixed is well and truly on. Nationwide have taken over the baton for now, ensuring broker business rather than NatWest closing out to direct only. Who will be next? We may just get to 3.5% in the next few weeks.
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Harps GarchaVerified
Director at Brooklyns Financial
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Nationwide is setting the stage for what’s around the corner after the holidays, and other lenders are bound to follow, which could make for a whirlwind fourth quarter in the property market. It’s great to see some healthy competition among lenders in the two- and three-year fixed-rate sectors.
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Elliott CulleyVerified
Director at Switch Mortgage Finance
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Great to see lenders still cutting rates and injecting further confidence into the housing market. Its also great to see some love for existing customers as the rates are reducing across the board. The 3-year fixed market is underserviced by mortgage lenders so it's good to see a lender taking this option seriously and offering competitive rates.
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Olivia Harland
Senior Mortgage Consultant at Cleerly Limited
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The mortgage price war continues - and it will only benefit those looking to remortgage or buy a new home! Nationwide's rate cut on their 5 year fixed rates throws down the gauntlet to their High Street rivals. Given what has happened in recent weeks since the base rate cut, Barclays, NatWest, HSBC and Halifax will probably respond with their own cuts in the coming days. Given that the average 5 year fixed rate was priced at 4.80% in mid-August, Nationwide's offering at 1% below that is great news for any potential borrower. It is a good idea for anyone consdiering a new mortgage to speak with their mortgage adviser sooner rather than later to review their options.
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Patricia McGirrVerified
Founder at Repossession Rescue Network
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Nationwide proves again they have their finger on the pulse of consumer needs, balanced with business ambition, leaving the big banks to follow behind. Good news for borrowers and a sure fire way to get buyers buzzing again.