Lenders reduce pricing for first-time buyers and home movers
Nationwide Building Society and HSBC UK are set to implement further cuts to fixed mortgage rates for residential borrowers from tomorrow, January 15, with changes spanning first-time buyers, home movers and existing customers switching deals.
Nationwide is trimming fixed rates by up to 20 basis points (bps) across selected two-, three- and five-year products, leaving its lowest fixed rate at 3.50%. The reductions apply to loans up to 95% loan-to-value (LTV) for both new and existing customers moving home.
For home movers with Nationwide, examples of the revised pricing include a two-year fix at 60% LTV with a £1,499 fee at 3.50%, reduced by 8bps; a three-year fix at 60% LTV with a £999 fee at 3.62%, cut by 13bps; a three-year fix at 90% LTV with no fee at 4.43%, reduced by up to 20bps; and a two-year fix at 85% LTV with no fee at 3.90%, down by 11bps.
Nationwide is also adjusting its first-time buyer range, with reductions of up to 17bps on fixed deals up to 95% LTV. Illustrative products include a two-year fix at 85% LTV with a £999 fee at 3.75%, reduced by 17bps; a two-year fix at 60% LTV with a £1,499 fee at 3.67%, down by 16bps; and a five-year fix at 90% LTV with a £999 fee at 4.22%, a reduction of 7bps.
First-time buyers completing a mortgage with Nationwide continue to receive £500 cashback. In addition, first-time buyers and home movers purchasing energy-efficient properties can access further cashback of up to £500 through the society’s Green Reward scheme, subject to eligibility.
Earlier today, HSBC has announced a broad repricing of its residential mortgage range, reducing rates for first-time buyers, home movers and existing customers nearing the end of their current fixed terms.
For existing residential borrowers switching products, HSBC is lowering rates on its two-year fixed Fee Saver mortgage at 95% LTV, targeting customers looking to secure a new deal at high LTV.
First-time buyers will see cuts on two-year fixed Fee Saver products at 90% and 95% LTV, alongside reductions on two- and five-year fixed Standard products at 90% LTV. The lender is also reducing pricing on five-year fixed Fee Saver mortgages at 90% LTV and on its two- and five-year fixed Premier Exclusive range at the same LTV.
HSBC’s Energy Efficient Home range, for properties with an energy performance certificate (EPC) rating of ‘A’ or ‘B’, is included in the changes, with corresponding reductions on two- and five-year fixed options at 90% and 95% LTV.
Home movers see one of the widest sets of adjustments, with HSBC cutting rates on two-year fixed Fee Saver products across 60%, 80%, 85%, 90% and 95% LTV bands.
The bank is also lowering rates on two-year fixed Standard products between 60% and 90% LTV, as well as on two-year fixed High Value mortgages at 60% LTV and Premier Exclusive products at 60%, 80%, 85% and 90% LTV. Energy Efficient Home products for movers are being repriced down across similar LTV tiers.
“Nationwide has made fixed rate price reductions swiftly following HSBC and NatWest’s latest price cut announcements” said Aaron Strutt, product and communications director at Trinity Financial. “Nationwide is not messing about with its new market leading two-year fix at 3.5% and 3.70% five-year fix for home movers with 40% deposits.
“We expected to start this year with the lenders cutting their rates and making them more attractive to borrowers and that’s exactly what is happening. Santander recently put its rates up and I suspect they will come down again soon.
“These price cuts are good news for borrowers especially with so many looking to get on the property ladder this year or remortgage onto cheaper deals. It is shaping up to be a positive 2026 in terms of price reductions and the 7,000-plus rates available through the banks and building societies. There is no doubt the mortgage lenders are open for business.”
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