Expert Knowledge & Professional Service

In a welcome move for home-buyers and remortgagers alike, NatWest has further reduced several of its fixed-rate mortgage deals, reinforcing the increasing competition in the UK mortgage market.

NatWest is now offering a fixed-rate mortgage at 3.71%—marking a noteworthy drop and signalling that lenders are eager to capture customers amid a softening rate environment.

NatWest has launched the most competitively priced five-year fix at 3.71%, and it is available to homebuyers borrowing between £25,000 and £2 million. There is a £1,495 arrangement fee, and applicants will need a 40% deposit to qualify.

Aaron Strutt, product director at Trinity Financial, says: "Some of the lenders have lowered their rates twice in the space of a week, which is quite unusual. If you are looking for a five-year fix then there is a lot of choice. NatWest also offers a sub-3.85 % five-year fix rate, while Santander has a three-year fix rate priced around 3.8%. Ten-year fixes are priced around 4.5%. Nationwide has also just announced it is cutting its prices and improving most of its rates.

"There has been a lot going on in the mortgage market over the last few weeks with multiple banks and building societies consistently lowering their rates in the run-up to Christmas and the Budget at the end of this month."

How much would NatWest's 3.71% fixed mortgage cost?

Representative example: A capital and interest NatWest mortgage of £400,000 payable over 30 years, initially on a fixed rate basis 3.71% until 31/01/2028 and then on the lender's 6.99% standard variable rate for the remaining 27 years. The 3.71% rate would require 25 monthly repayments of £1,847.98 followed by 335 payments of £2,617.92. The total amount repayable would be £923,232.70made up of the loan amount, plus interest (£522,206.93) and £1,495 (product fee), £65 (final repayment charge), £30 (completion fee). The overall cost for comparison is 6.6% APRC representative.

Get expert mortgage advice from Trinity Financial

At Trinity Financial, our team of experienced London mortgage brokers specialises in helping borrowers secure the right deal. We work with all major lenders and can guide you through the full application process.

Call Trinity Financial on 020 7267 9399 to secure a mortgage or book a consultation

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

HSBC mortgages has started to offer up to 6.5 times salary income multiples to HSBC UK Premier account customers. 

Where an application is 90% loan-to-value or less, so the borrower has at least a 10% deposit, HSBC will apply a loan-to-income of 6.5x single or joint incomes, subject to an affordability assessment.

Please note, in order to qualify for the higher loan-to-income at least one applicant must hold a Premier account at the point of submission. This is something Trinity's brokers can do for customers, providing they meet the premier account requirements.

UK Premier Account Eligibility:

• Annual income of at least £100,000 paid into the HSBC Premier account or
• Savings or investments of at least £100,000 with HSBC in the UK or
• International Premier status, already a Premier customer elsewhere

Will borrowers need to opt for a two- or five-year fix for HSBC's 6.5x salary mortgages?

HSBC has also enhanced its affordability calculator to allow us to select a Premier customer and access the new loan-to-income multiples. The mortgage affordability calculator will now show two maximum loan amounts based on whether a rate of less than five years or five years or greater is selected, providing additional options for customers’ borrowing needs.

Aaron Strutt, product director at Trinity Financial, says: “HSBC has gone from being one of the more conservative lenders to offering up to 6.5 times salary to higher earners. This policy change means they are more generous than virtually all of the other banks and building societies.

"We know the lenders are keen for business but this income stretch mortgage is punchy to say the least and borrowers will really need to think carefully before they take on such a big income multiple.

"Applicants will probably need to lock in for five years to get the highest loan amount, so this does provide a bit more payment security. I am pretty sure this change will get HSBC a lot more business, especially as many applicants only need slightly more generous loan sizes to buy the properties they want. Affordability is clearly a huge issue in the mortgage and property markets and HSBC is trying to address this."

A few months ago HSBC increased its loan-to-income (LTI) ratio for first-time buyers. The lender is now offering first-time buyers LTI multiples of up to 5.5 times their salary on mortgages. Sole applicants earning at least £35,000 and joint applicants with a combined income of £55,000 or more will be eligible for enhanced borrowing.

Other lenders offering up six times salary mortgages but their rates are unlikely to be as well priced as HSBC's. Check out our blog on how many lenders offer 6 times salary mortgages.

Get expert mortgage advice from Trinity Financial

At Trinity Financial, our team of experienced London mortgage brokers specialises in helping borrowers secure the right deal. We work with all major lenders and can guide you through the full application process.

Call Trinity Financial on 020 7267 9399 to secure a first-time buyer mortgage or book a consultation

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

• Nationwide's substantial enhancement of Interest Only offering, includes increasing the maximum loan-to-value for part and part to 85%
• Expanding range of repayment plans accepted, including use of savings, investments and pension funds
• Interest Only mortgage borrowing now also available for first-time buyers

Nationwide has enhanced its Interest Only mortgage offering as it aims to give homeowners more flexibility.

Interest Only lending will be extended to all buyer types up to 75 per cent Loan-to-Value (LTV) or up to 85 per cent if it’s a part interest only, part capital repayment application.

Nationwide's Interest Only repayment vehicles:

Nationwide is also expanding repayment options beyond the existing sale of main residence, to include UK-based savings, investments, pension funds and other properties.

Applicants need a minimum eligible income of £75,000 for sole applications and £100,000 for joint cases, unless one applicant earns at least £75,000. The maximum loan amount available through Interest Only is £5 million, with the maximum term increased to 40 years (or retirement, if sooner), from the current 25 years.

Nationwide's Interest Only now available to first-time buyers:

The Interest Only range, which is currently only available through brokers, will also become open to first-time buyers. Nationwide re-entered the residential Interest Only market in 2020 and has been supporting those wanting to move home or remortgage via intermediaries.

Aaron Strutt, product director at Trinity Financial, says: "The lenders have been slowly easing their interest-only mortgage rules for a while, and they have been easing their mortgage affordability rules." 

Does it make sense to take a Nationwide Interest Only mortgage? 

Interest-only is a great option to lower monthly costs, but it makes sense to have a plan in place to work out how to repay the debt at the end of the term. There are lots of lenders offering interest-only now, it often makes sense to take part of the mortgage on interest only and a chunk of it on capital repayment."

Get expert mortgage advice from Trinity Financial

At Trinity Financial, our team of experienced London mortgage brokers specialises in helping borrowers secure the right deal. We work with all major lenders and can guide you through the full application process.

Call Trinity Financial on 020 7267 9399 to secure a first-time buyer mortgage or book a consultation

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

Two and three-year fixed-rate mortgages are still more competitively priced than virtually all of the lowest five-year fixes, as many borrowers continue to opt for short-term fixed rates.

Mortgage lenders including Barclays, HSBC, Halifax, Santander and NatWest, have all lowered their rates in recent days in a positive move by the banks to attract more borrowers in the run-up to Christmas. Their five-year fixes are no longer as competitively priced, so there are fewer sub-4% five-year fixes available.

NatWest, Santander, Barclays and Halifax offer a selection of the lowest two-year fixes from around 3.75%, while Santander, TSB and Halifax offer three-year fixed rates from 3.8%.

When is the next Bank of England base rate cut expected?

UK headline inflation unexpectedly held steady at 3.8%, with policymakers hoping we are at the peak, and prompting traders to increase bets on a rate cut by year-end.

According to the latest market update from Arbuthnot Latham private bank, markets are now pricing in a 70% probability of a December cut, followed by at least one further cut early next year, potentially taking the base rate to below 3.5%.

No change is expected at the November meeting, but markets will be keenly focused on the vote split and the Bank’s updated economic projections.

Why are borrowers still taking five-year fixes if two-year deals are cheaper?

Many homeowners and particularly first-time buyers, want the longer-term payment security and would rather avoid a two-year fix. Another big reason is that mortgage lenders use more generous affordability calculations, so first-time buyers, next-time buyers, and remortgaging customers can borrow more when they take a five- or even a ten-year fix.

What will happen to fixed rates if the base rate is lowered?

There is a chance that the fixed rates will get cheaper, but probably not by much. The Bank of England base rate and mortgage funding costs will need to come down a few more times before fixed rates get noticeably cheaper.

Call Trinity Financial on 020 7267 9399 to secure a  mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage 

Nationwide Building Society has reported a 53% increase in first-time buyers using its Helping Hand mortgage in the past year, as demand for affordable mortgage options continues to rise.

Record support for first-time buyers

Between October 2024 and September 2025, around 23,000 buyers used the Helping Hand scheme – up from 15,000 the year before. The surge follows Nationwide’s decision to let eligible buyers borrow up to six times their income, making it easier for more people to secure their first home.

Recent regulatory changes have also allowed the lender to relax its affordability criteria, extend lending to 95% Loan-to-Value (LTV) on new-build houses, and reduce stress testing.

How Helping Hand makes a difference

Launched in 2021, Helping Hand offers first-time buyers enhanced borrowing power on five- or ten-year fixed-rate deals. Since launch, the scheme has supported over 63,000 buyers and lent around £13 billion – with particularly strong take-up in London and the South East, where property prices are higher.

The average age of Helping Hand buyers is 30–31, two to three years younger than the typical first-time buyer, showing the impact of improved affordability.

Nationwide’s Group Director of Mortgages, Henry Jordan, said:

“Our decision to increase borrowing up to six times income has been a gamechanger for thousands of first-time buyers. We’re proud to keep putting first-time buyers first.”

Do other lenders offer six times salary mortgages?

Bank of Ireland for Intermediaries is the latest bank to start offering up to 6 times salary mortgages. They are also available through Tipton Building Society and Kensington for Intermediaries. Although some of the UK's largest mortgage lenders, including HSBC and Santander for Intermediaries, have eased their mortgage affordability in many cases, issuing mortgages worth up to £39,000 more, they are still not generous enough to help many borrowers onto the property ladder. 

Get expert mortgage advice from Trinity Financial

At Trinity Financial, our team of experienced London mortgage brokers specialises in helping first-time buyers secure the right deal. We work with all major lenders, including Nationwide, and can guide you through the full application process.

Call Trinity Financial on 020 7267 9399 to secure a first-time buyer mortgage or book a consultation

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

Barclays, HSBC and Santander have announced they are lowering their mortgage rates as the lenders look to attract more borrowers in the run-up to Christmas.

The current slowdown in the UK mortgage and property market is also making them work a bit harder, as many buyers wait to see what Labour announces in the November Budget.

Barclays is introducing a five-year fix tomorrow priced at just over 3.90% with a £899 arrangement fee for borrowers with a 40% deposit. The maximum loan size is £2 million and properties will need to have an energy efficiency rating of 81 or above, or have energy efficiency bands A or B to qualify. The rate is marginally higher for properties with lower energy ratings.

Santander is lowering its mortgage rates by around 0.15% for new and existing customers. The Spanish bank is launching a two-year fixed rate starting from just over 3.70% for mortgages between £500,000 and £1.5 million and up to a maximum of £5 million. Product fees starting from £1,999. 

According to research from Mojo Mortgages, the average UK buyer waits 87 days, almost three months, between receiving a mortgage offer and completing their purchase. So anyone getting an offer accepted to buy a property now can expect to get their keys in February or March. However, this period is often far longer than anticipated by first-time buyers, typically consumed by conveyancing, legal checks and administrative processes.

Get expert mortgage advice from Trinity Financial

At Trinity Financial, our team of experienced London mortgage brokers specialises in helping first-time and next-time buyers secure the right deal. We work with all major lenders, including Nationwide, and can guide you through the full application process.

Call Trinity on 020 7267 9399 to secure a mortgage or book a consultation

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage