Nationwide has cut its mortgage rates by up to 0.25% in a “welcome boost” for borrowers, as brokers forecast “we will see some more of this in the coming weeks”. From Friday, June 26, Nationwide is reducing selected fixed rates by up to 0.25%.

The cuts span its first-time buyer, home mover, existing customers moving home and remortgage products, as well as its switcher and additional borrowing product ranges. Nationwide’s two-year fix is coming down from 4.29% to 4.19% and its three-year fix is coming down from 4.49% to 4.44%.

Its five-year fixes now start from 4.31%. The building society had already trimmed mortgage rates by up to 0.28% early last week. This follows news that The Mortgage Works is also cutting its new business mortgage rates by up to 0.25%.

Brokers are urging borrowers to secure deals promptly given the turbulence on the horizon, with the Iran and US ceasefire hanging by a thread and Andy Burnham widely expected to succeed Sir Keir Starmer as Prime Minister within the next couple of months.

Nationwide update is ‘good news’

Brokers indicated that markets are beginning to stabilise, pointing towards lower rates in the near term. Manooch Suree, director of Uxbridge-based Zinga Financial Services, described the development as positive news for borrowers.

He added: “Nationwide cutting selected fixed rates by up to 0.25% is a welcome boost for buyers and homeowners. With markets still reacting to inflation, interest rate expectations and global economic news, lender pricing can move quickly.

“If you’re buying, moving or remortgaging, it’s worth reviewing your options now. Overall, any reduction is good news for the current housing market and wider economy.”

Omer Mehmet, managing director of Welling-based Trinity Finance, welcomed the cuts. He added: “With the oil price returning to pre-war levels, there is a sense of optimism in the air after a turbulent few months. When major lenders like the Nationwide cuts rates, others tend to follow.”

Michelle Lawson, director of Fareham-based Lawson Financial, anticipated further reductions in the weeks ahead.

She added: “Temperatures aren’t the only things hotting up. Nationwide is reducing its rates further to tempt borrowers off the beach. As markets stabilise we will see some more of this in the coming weeks.”

Justin Moy, managing director of Chelmsford-based EHF Mortgages, cautioned that uncertainty lay ahead.

He added: “Welcome news from Nationwide and others who have recently cut rates, as swaps have melted in the heat this week, allowing lenders to pass on these savings. As always, the recommendation is to pick up a new deal as soon as possible, as the Middle East conflict can flare up at any time, and a change of prime minister can cause market jitters as well. No need for oven gloves just yet, rates are just starting to warm up again.”

Rohit Kohli, director of Romsey-based The Mortgage Stop, urged borrowers to secure a rate without delay. He continued: “It’s 36C outside and mortgage rates are coming down. This is about as good as it gets in the UK – which is precisely why borrowers should be acting now, not waiting to see what happens next. We’re getting a new prime minister. The Iran conflict is ceasefire on paper, knife-edge in practice.

“The market is moving in the right direction today – but any of those factors could change the picture within weeks. If the deal stacks up now, there’s no logic in holding out for better. Nobody predicted record June temperatures either. Make hay while the sun shines. Right now, it’s blazing.”

‘Time to act’ if you’re applying for a mortgage

David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth, urged borrowers to take action immediately.

He stated: “Nationwide is cutting fixed rates by up to 0.25% from tomorrow – and while that might not sound like cause for celebration – it is part of a broader repricing across the market. Swap rates are falling in anticipation of further Bank of England cuts. Fixed rates are priced on where money is going, not where it is today, which is why lenders are moving now.

“That said, waiting for the ‘perfect’ rate is a bit like waiting for a quiet day on the M25, which is theoretically possible, but nobody has ever actually seen one. If your fixed rate deal is ending soon, now is the time to act.”

Aaron Strutt, product and communications director at London-based Trinity Financial, expressed his hope that other major lenders would follow suit after Nationwide’s latest move.

He said: “Nationwide has just announced that it is lowering its rates again after its last set of price cuts on June 16. The bigger lenders are improving their rates more frequently at the moment, which is good news for home buyers and the lender’s existing mortgage customers.

“Nationwide already had the cheapest two- and five-year fixes, but the lender is lowering its prices again hot on the heels of Barclays which dropped its rates twice in the space of a few days. Hopefully a few other big lenders will do the same thing soon.

“These rates are still not as low as the best trackers starting from 3.96% but they seems to be getting closer every few days with all of these rate cuts. A change of prime minister is expected to bring more economic instability – but hopefully it doesn’t hit the mortgage market.”

Nationwide has slashed mortgage rates by up to 0.28% following Iran and the US reaching a peace agreement, in what has been described as “welcome news for borrowers” – though experts warn that “people should not assume rates are now definitely heading in one direction”. The cuts will take effect across its fixed mortgage range tomorrow, Tuesday, June 16, with the lowest available rate standing at 4.29%.

The revised rates include:

– Reductions of up to 0.20% across two, three and five-year fixed rate products up to 95% Loan-to-Value (LTV) for first-time buyers

– Reductions of up to 0.28% across two, three, five and ten-year fixed rate products up to 90% LTV for remortgages

– Reductions of up to 0.17% across two, three, five and ten-year fixed rate products up to 95% LTV for existing and new customers moving home

Carlo Pileggi, Nationwide’s head of mortgage products, said: “We’re delighted to be cutting rates again as we look to put Nationwide at the forefront of borrowers’ minds. These changes will support first-time buyers and home movers, as well as provide competitive options for those looking to remortgage. Following the rate cuts last week to our switcher range for existing customers, this underlines our role as an all-round lender focused on supporting borrowers across the housing market.”

Rohit Kohli, director of Romsey-based The Mortgage Stop, said the news was positive.

He added: “Nationwide’s cut is welcome news for borrowers, especially after mortgage pricing moved upwards sharply following the outbreak of the conflict. I would be careful about linking this reduction too directly to the Iran and US news of a peace deal.

“A lender of Nationwide’s size will usually have planned this repricing several days ago, based on Swap rates, funding costs and competitor activity. That said, the market reaction to the proposed peace deal matters.

“If oil and energy prices keep falling, that eases some inflation pressure and could improve the medium-term rate outlook. Other lenders may follow, but borrowers should not assume we are heading straight back to the rates seen at the start of the year.”

Chunky cuts

Omer Mehmet, managing director of Welling-based Trinity Finance, said the market had started the week positively.

He added: “These are fairly chunky rate cuts from a major lender and will create optimism about more reductions to come in the days and weeks ahead following the end of the war in the Middle East. It’s still early days but this is a positive start to the week.”

Shaun Sturgess, director of Swansea-based Sturgess Mortgage Solutions, warned against complacency.

He added: “It’s likely these rate cuts were planned before the news about the war ending last night. Reductions like this will be welcomed by borrowers but equally people should not assume rates are now definitely heading in one direction as we have seen how quickly things can turn in the past.”

Justin Moy, managing director of Chelmsford-based EHF Mortgages, said lenders were passing on cheaper deals.

He added: “Good news from Nationwide that will inevitably help push rates with many of the other high street lenders. This rate cut would have been approved at the end of last week, so not a direct response to the Middle East improvement, but Swap rates are looking more palatable, which will give the lenders the green light to pass on cheaper deals.”

David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth, said the direction of travel was positive.

He added: “After a year that’s felt like a financial rollercoaster held together with geopolitical duct tape, here’s some actual good news: Nationwide is reducing selected fixed mortgage rates by up to 0.28% from tomorrow. The somewhat unlikely catalyst is an interesting cocktail of a US-Iran peace deal inching closer to reality, which has calmed oil markets, dragged gilt yields lower and given lenders just enough breathing room to stop quietly sweating and start cutting.

“Nationwide aren’t alone as NatWest, Halifax, Barclays and others have already trimmed rates this month. This direction of travel is good, but with the Bank of England meeting Thursday and inflation still above target, this isn’t the moment to assume rates can only go one way. If you’re thinking about buying or remortgaging, now’s a good time to have a conversation.”

Darryl Dhoffer, founder of Bedford-based The Mortgage Geezer, urged borrowers to lock in deals quickly.

He added: “Make hay while the sun shines – or while Donald Trump stays off the socials. Sonia Swap Rates have reacted positively this morning with the so-called peace agreement in the Middle East set for this Friday.

“All about trends and as yet, one social tweet as we have seen in the past, does not constitute consistent downward interest rate market trends – but good to see Nationwide finally coming to the table with lower rates.”

Mortgage approvals surged in April, demonstrating that “first-time buyers are taking advantage of a more negotiable market” – yet experts cautioned that “on the ground today, the mood is far more cautious“.

According to Bank of England data released this week, net mortgage approvals for house purchases climbed to 65,900 in April, surpassing the six-month average of approximately 63,100. Approvals for remortgaging remained largely stable compared to March.

Meanwhile, net borrowing of mortgage debt by individuals decreased to £4.4 billion in April, from £6.8 billion in March, below the previous six-month average of £5.1 billion. This follows Nationwide’s House Price Index revealing that UK annual house price growth eased to 1.7% in May, down from 3% in April – with house prices falling 0.6% month on month, marking the first monthly decline of the year.

Ranald Mitchell, director of Norwich-based bad credit mortgage specialists Charwin Mortgages, noted that the figures pointed to first-time buyers returning to the market.

He added: “April’s rise in mortgage approvals shows buyers are back in the game, but not throwing caution to the wind. First-time buyers are taking advantage of a more negotiable market, lenders are competing harder on affordability, and borrowers are finally accepting that waiting for perfect conditions is a losing strategy. This is not a boom, but it is a healthier, more functional mortgage market.”

Thomas Boughton, founder of London-based Artillium Real Estate Finance, revealed that April proved to be a particularly hectic period for his firm.

He added: “April was particularly busy, reflecting growing acceptance that interest rates are likely to remain volatile. Rather than waiting for ideal conditions, many people are choosing either to continue renting or move forward with a purchase instead of shopping around for interest rates.

“Lenders are becoming more flexible with increased use of technology to improve efficiency and a more pragmatic approach to cases slightly outside standard criteria. This reflects a broader shift in borrower profiles, with previously ‘higher risk’ cases becoming more commonplace as lenders adapt.

“While enquiry levels are at record highs, this has not always translated into more applications. Instead, clients are seeking advice and clarity earlier, allowing us to help them understand their options, plan ahead, and make more informed decisions with confidence. Clients are leaning more on our professional outlook of the market when making decisions more than ever.”

Meanwhile, Darryl Dhoffer, founder of Bedford-based The Mortgage Geezer, noted that sentiment was “more cautious” now compared to April.

He added: “The April spike is a rearview mirror metric reflecting the brief window of cheaper fixed rates back in January and February. First-time buyers, driven by skyrocketing rents, jumped in early to lock in lower rates. However, the drop in net borrowing to £4.4 billion shows buyers are choosing cheaper properties or using larger deposits to pass tough affordability tests.

“On the ground today, the mood is far more cautious. The early year momentum has slowed. With mortgage rates creeping back up buyers face a harsh reality check. While official numbers look rosy, the current market is highly price sensitive.

“Chains are brittle and down-valuations are common; deals only cross the finish line when sellers drop expectations. Nationwide’s recent 0.6% house price drop reflects the true street reality, a grinding market where closing deals requires twice the effort.”

Manooch Suree, director at Uxbridge-based Zinga Financial Services, said confidence was on the rise across the housing market.

He added: “The rise in approvals in April is largely a confidence story. Buyers, particularly first‐timers, are sensing that the window of opportunity is still open. House prices have softened in many areas, lenders have been competing harder on rates, and people who sat on their hands through last year’s volatility are now re‐entering the market.

“It’s not a surge, but it’s a clear sign that sentiment is improving. First‐time buyers are definitely a big part of the movement. Many of them are taking advantage of a calmer market where they’re not having to bid against ten other buyers. They’re also adjusting to the ‘new normal’ for interest rates, once people accept that 1% mortgages aren’t coming back, they start making decisions again.

“We’re also seeing more activity from movers who delayed plans during the rate spikes. Some borrowers who secured lower‐rate offers earlier in the year are now pushing ahead before those offers expire, which has helped lift April’s numbers.”

Louis Mason, content and communications director at London-based Oportfolio Mortgages, revealed that a growing number of prospective buyers were opting to press ahead rather than sit on the fence.

He added: “The increase in approvals in April feels like a mix of improving confidence, more competitive lenders, and buyers realising the market may finally offer a bit of breathing room again. We’re definitely seeing more first-time buyers returning.

“After the volatility of the last two years, many are treating the current market a bit more boldly. It’s not perfect conditions, but probably safer to move now than wait forever. Lenders have also become more flexible, with improved affordability models and higher income multiples helping buyers access larger loans, particularly in London, where house prices still behave as though they’ve never heard of inflation.

“The drop in borrowing after March isn’t too surprising either, as March was boosted by buyers rushing to complete before stamp duty changes. On the ground, the market feels busy but sensible. Buyers are active again, but far more cautious and financially disciplined than during the ultra-low-rate era.”

Babek Ismayil, chief executive of homebuying platform OneDome, said first-time buyers are once again entering the market.

He added: “One contributor to the rise in mortgage approvals was almost certainly the increased awareness among first-time buyers that current market conditions are a perfect opportunity to get onto the ladder. Yes, mortgage rates are higher than they were a few months ago before the war in the Middle East began, but lenders are improving their affordability and aspiring buyers are in a position to make some punchy offers. First-time buyers are calculating that they can claw back on the asking price the extra money they will pay on a mortgage, and then some.”

Michelle Lawson, director of Fareham-based Lawson Financial, described April as an exceptionally strong month for her firm.

She added: “April was one of our best ever months, so this reflects the data. There are a lot of mortgage maturities with some still to come off the low rates and there was a bit of purchase activity.

“The market has quietened now, but buyers need to see the current climate as an opportunity to negotiate, as the savings on the property price will usually outweigh the extra in monthly payments due to higher interest rates due to the Middle East fallout. This does appear to be calming, so first-time buyers should be looking to buy and make the most of the current timing.”

Andrew Montlake, chief executive of London-based Coreco, insisted the mortgage market continued to confound the sceptics.

He added: “If proof were needed that the UK mortgage market is resilient, this is it. Demand for bricks and mortar continued despite all the geopolitical volatility and lenders are doing their level best to stimulate activity and the supply side.”

Barclays and NatWest have unveiled mortgage rate reductions from Friday as the market gathers momentum amid the May heatwave, with brokers declaring a “significant shift”. Barclays has slashed its rates across the board by up to 0.43% — with the standout being its 5.85% purchase three-year fixed rate 95% Loan to Value (LTV), with a fee of £899 and a maximum loan of £570,000, dropping to 5.42%.

NatWest, meanwhile, has trimmed its rates by up to 0.54% — with the headline figure being its two-year tracker rate remortgage at 80% LTV with a fee of £995 being reduced to 4.42%. Coventry Building Society (BS) has similarly announced cuts across its product range.

This follows Santander lowering its rates by up to 0.23% last week, while Gen H trimmed its mortgage rates by up to 0.3% earlier this week. Experts noted that the easing of tensions in the Iran war had provided a boost — though they cautioned that sentiment could shift rapidly should hostilities escalate once more.

Justin Moy, managing director of Chelmsford-based EHF Mortgages, noted that swap rates had fallen and this was now filtering through into mortgage rates.

He added: “Some significant cuts from a number of high street lenders, as swap rates improve and the likelihood of base rate increases in 2026 recedes. But it’s so important for borrowers to act ‘quickly’ just in case, as we have seen so many times this year, rates can increase with little notice.”

Jack Tutton, director of Fareham-based SJ Mortgages, said there was “growing optimism” among brokers.

He added: “This marks a significant shift in the market, with many lenders reducing some of their rates today. These widespread cuts are set to increase competition in the mortgage market as summer approaches, bringing welcome news for those planning to move in the coming months.

“Borrowing costs have fallen over the past month, leading to the reductions released today, and there is growing optimism that this trend will continue with further rate cuts expected in the near future.”

Dariusz Karpowicz, director of Doncaster-based Albion Financial Advice, said summer was a “buying season”.

He added: “Welcome news for once. Swaps are easing, base rate fears for 2026 are fading, and the high street has finally taken the hint. Barclays, NatWest and Coventry are all trimming rates, and the timing could not be better with summer and the buying season nearly here.

“A word of caution, though. Cheaper rates have a habit of vanishing as fast as they appear, so do not sit on your hands. If you are buying or coming to the end of a deal, get your numbers reviewed now and lock something in while the mood is good. Optimism is lovely, but a secured rate is better.”

Katy Eatenton, mortgage and protection specialist at St Albans-based Eatenton Finance, urged borrowers to secure rates without delay.

She added: “Great news to get what tends to be a quiet time or year ramped up and moving in a positive direction. The downward direction of rates should give comfort to those coming off super-low rates this summer. I still encourage those hoping to move or remortgage this year to lock a rate in early, just in case things change”

Samuel Mather-Holgate, MD and IFA at Swindon-based Mather and Murray Financial, said these rates could be a sign of things to come.

He added: “The mortgage market is schizophrenic currently, with lenders increasing and decreasing rates week by week and movements within the market daily. It is great to see rates coming down, especially across leading lenders and coordinated moves.

“This could be a sign of things to come, but with geopolitics indirectly driving mortgage rates anything could happen while Donald Trump is directing policy.”