Mortgage rate alert! Nationwide undercut competitors again with cheap fixes starting from 3.5%

by Aaron Strutt

Jan 28 2026

Nationwide for Intermediaries has made fixed-rate price reductions swiftly following HSBC and NatWest’s latest price cut announcements. 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.

That 3.50% two-year fix has a £1,499 fee and borrowers need a 40% deposit to access it. It is available for mortgages between £300,000 and £5 million, just like Nationwide’s new 3.70% five-year fix. These rates are likely to undercut many of the private banks. If you look at Coutts, for example, its cheapest two-year fix is priced aroud 4.4%, and its minimum mortgage loan size is now £1.5 million.

Aaron Strutt, product director at Trinity Financial, says: "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 for price reductions and the 7,000+ rates available from banks and building societies. There is no doubt the mortgage lenders are open for business."

Representative example: A capital and interest Nationwide mortgage of £500,000 payable over 30 years, initially on a 3.50% fixed rate for two years and then on a variable rate of 6.49% for the remaining 28 years, would require 24 monthly repayments of £2,252.02 followed by 336 monthly repayments of £3,115.01. The total amount repayable would be £1,100,691.84.

This amount is illustrative and may vary, made up of the loan amount, plus interest (£599,176.94) and £1,499 (product fee), £65 (final repayment charge), £15 (completion fee). The overall cost for comparison is 6.2% APRC representative.

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

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