Reprice ahead of Bank of England decision
Several mortgage lenders, including major lender Nationwide, have announced rate reductions across a range of products, signalling increased competition in the home loan market ahead of the Bank of England’s upcoming base rate decision.
Nationwide Building Society has cut rates by up to 30 basis points (bps) on selected two-, three-, five- and 10-year fixed, and two-year tracker mortgages. The lender's lowest mortgage rate now stands at 3.84%, available to both new and existing customers moving home on two- and five-year fixed deals at 60% loan-to-value (LTV).
For the first time since September 2024, Nationwide is offering sub-4% deals to first-time buyers, including a two-year fixed rate at 3.94% with a £1,499 fee at 60% LTV, and a 3.99% version with a £999 fee. Cuts of up to 0.30% also apply to higher LTV options, including 95% LTV products.
“We’re pleased to be able to make our third rate cut in three weeks as we strive to remain one of the most competitive lenders in the market,” said Carlo Pileggi, mortgages senior manager at Nationwide Building Society. “This latest round of changes includes us offering sub-4% rates for first-time buyers, as well as reducing rates across our Helping Hand mortgages, which enable eligible first-time buyers to borrow up to six times their income up to 95 per cent loan-to-value.”
Meanwhile, Leeds Building Society has reduced its residential mortgage rates by up to 20bps. The revised rates apply to several two-year fixed products, with pricing starting at 4.07% for loans up to 65% LTV with a £1,499 fee. Fee-free options are also available at 4.34% and 4.44% for 65% and 75% LTVs, respectively. All products come with a free standard valuation and include remortgage legal support and 10% annual penalty-free overpayment allowances.
Specialist lender Hampshire Trust Bank has also reduced its bridging finance rates by 10bps across all loan types, including residential, semi-commercial, and heavy refurbishment products. The changes are effective immediately and follow enhancements to its refurbishment loan terms, such as up to 75% Day 1 LTV and 100% of refurbishment costs (within a 65% loan-to-gross-development-value cap) for qualifying projects.
Another specialist lender, MT Finance, has lowered rates across its buy-to-let mortgage range, now offering a headline two-year fixed rate of 2.99% on its Tier 1 product – down from 3.19%. The lender also cut its Tier 2 product rate to 3.65%. The changes aim to provide more competitive financing for landlords, with interest coverage ratio (ICR) stress testing maintained at 125%.
Elsewhere, fintech mortgage lender Gen H has announced its fourth consecutive round of rate cuts, focusing on high-LTV products. Rates at 90% and 95% LTV were lowered by 10bps, while 85% LTV products and the lender’s New Build Boost scheme were reduced by 20bps. Gen H’s New Build Boost combines an 80% LTV mortgage, a 5% customer deposit, and a 15% interest-free equity loan backed by Persimmon.
Another fintech mortgage lender, MPowered Mortgages, has made its third rate cut since April. Two-year fixed purchase mortgages now start at 3.94% for customers with a 40% deposit paying a £999 fee. Three-year remortgage rates begin at 3.89%, and five-year fixed rates start at 4.04% with the same deposit and fee structure. Fee-free options are priced slightly higher.
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