Nationwide cuts mortgage rates to as low as 3.64% with TSB also slashing rates: "Cheapest rates since 2022 Budget"
NATIONWIDE and TSB have announced further cuts to their mortgage rates with brokers saying they are some of the cheapest rates seen since the 2022 Budget.
Nationwide is from tomorrow offering rates as low as 3.64% two-year fixed, for those with a 40% deposit and a £1,499 fee.
That's a 0.25% reduction on selected rates.
While TSB is offering its third cuts in a fortnight tomorrow – with reductions of up to 0.15% two and five-year fix rates for home purchase only.
Brokers pointed out that the cheaper products are for those looking to purchase a property – first time buyers and homemovers – with remortgage and switcher rates a little more expensive.
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said: "We have moved to some of the cheapest rates seen since the 2022 Budget, especially for those looking to buy a new property. Both lenders have cheaper products for homebuyers over those looking to remortgage, with rates as low as 3.64% for a 2-year fixed and a £1,499 fee (40% deposit required).
“With other High Street lenders already dropping their rates over the last few days, there is a little bit of competition, plus greater expectations of base rate cuts on the horizon – good news for mortgage holders at least.”
Michelle Lawson, Director at Fareham-based Lawson Financial, urged people to secure deals while they are so low.
She added: "This is a bonfire bonanza for borrowers with more rate cuts coming from the big guns as a last drive for business before the year end. Anyone with a mortgage product ending in the next four to six months should seriously consider securing something sooner rather than later before the Budget puts the flames out.
Katy Eatenton, Mortgage & Protection Specialist at St Albans-based Lifetime Wealth Management, agreed, adding: "Rates have gradually been slipping over the last couple of weeks, which is great to see for borrowers and I would encourage anyone that is due to remortgage in the next six months to lock these rates in while they can, just in case we have another diabolical repeat of the Budget of 2022."
Ranald Mitchell, Director at Norwich-based Charwin Mortgages, said there is a feeding frenzy of rate cuts towards the end of 2025.
She continued: "UK lenders are ending the year swinging, fighting for every last scrap of business. These latest cuts from Nationwide and TSB show the gloves are off as lenders battle to get their 2025 pipelines filled early. With rates now dipping back into the mid-3s for high-equity buyers, it’s a clear signal that competition is heating up fast.
“After a year of cautious optimism, the mortgage market is finishing 2025 on a high. Lenders are hungry and borrowers are finally back in the driving seat.”
Ken James, Director at London-based Contractor Mortgage Services, said there is a “price war” between lenders.
He added: "Nationwide and TSB slash mortgage rates as competition heats up and funding costs fall. With more lenders announcing cuts, the market is feeling increasingly competitive. Falling swap rates have lowered the cost of funding fixed-rate mortgages, giving lenders room to trim rates and that’s intensifying the price war.
"With borrowing demand still soft, banks are fighting harder for business. As soon as one lender cuts, others quickly follow. Expectations that the Bank of England has finished hiking rates and could even cut at its next meeting, are starting to filter through, encouraging sharper pricing across the board.
"These announcements couldn’t come at a better time. With uncertainty around the November Budget and the Rachel Reeves tax debate still unfolding, lenders and homeowners are eager for some positive momentum to hold onto as we navigate the choppy waters of the housing market and wider UK economy."
https://www.nationwide-intermediary.co.uk/news/rate-changes-051125?utm_source=NFI&utm_medium=email&utm_campaign=15234723_NFI5617_Rate_Reductions_Approved
