LONDON, Feb 15, 2026, 06:06 GMT
- Nationwide is offering home movers a two-year fixed mortgage at 3.54%, its lowest rate for borrowers with a 60% loan-to-value ratio.
- The building society trimmed rates on certain two-, three-, and five-year fixed deals, reducing them by as much as 0.16 percentage points.
- Uncertainty around Bank of England rate moves has left mortgage pricing closely tied to shifts in funding costs.
Nationwide Building Society lowered its fixed-rate mortgage offerings again on Friday, bringing the lowest rate down to 3.54%. Rivals looking to attract fresh borrowers now face more pressure.
Mortgages remain the major monthly outlay for millions of UK households, so even modest rate changes can tip the balance—especially for first-time buyers and anyone refinancing this year.
Fixed-rate mortgage costs hinge on “swap” markets, those wholesale interest-rate contracts banks use to hedge their funding. If traders shift their expectations for the Bank of England’s path, borrowing rates can react fast.
Nationwide trimmed rates by as much as 0.16 percentage points on select two-, three- and five-year fixed deals, with changes rolling out for both new borrowers and existing clients. The lender’s cheapest rate now stands at 3.54%—a two-year fix for home movers borrowing up to 60% LTV, paired with a £1,499 fee. “We’ve reviewed our pricing to keep it sustainable and competitive for customers,” said Carlo Pileggi, who oversees mortgage products at Nationwide. (Nationwide)
First-time buyers looking at Nationwide now see a three-year fixed deal at 4.40% with a 90% LTV, plus a £999 fee. There’s also a two-year fix at 4.10%, same LTV and fee—both trimmed by as much as 0.16 points. (A basis point equals one hundredth of a percentage point.) The lender throws in £500 cashback on completion for new buyers, and offers up to £500 under its “Green Reward” for those opting for energy-efficient homes. (Financialreporter)
Brokers pointed out the shift, noting it’s a standout following a bumpy stretch for market pricing. Aaron Strutt, product director at Trinity Financial, said lenders kept mortgage deals “really competitively priced” even as rates had inched up earlier, and highlighted Nationwide’s two-year fix at 3.54% as one of the top picks right now. Santander tweaked rates too, he said—some options for first-time buyers and movers came down, but a few of its headline “best-buy” products saw slight increases. (Trinityfinancialgroup)
Lenders are making cuts just as the market for low-deposit mortgages gets broader, even if rates aren’t close to the rock-bottom levels seen before inflation took off. According to Moneyfacts data cited by the Guardian, buyers can now choose from 537 mortgages at 95% LTV—almost twice as many as two years back. (Theguardian)
Bank of England officials remain split over just how much more rates should drop. Chief economist Huw Pill put underlying inflation around 2.5%, and called current interest rates “a little bit too low”—his way of warning against hasty cuts. (Reuters)
Since August 2024, the Bank has delivered six rate cuts. Recent committee votes? Divided. Markets and lenders are left to speculate on what’s next. The ambiguity is reflected in swap markets—and mortgage pricing follows suit.
Still, most borrowers won’t actually snag those headline rates. The lowest fixed deals usually demand hefty upfront fees and sizable deposits. Higher LTV? Expect steeper charges. Should inflation refuse to budge, or if funding costs spike, lenders can hike rates or yank offers without warning.
