Cheap mortgage alert! Nationwide lowering fixed rates down to 4.35% for mortgages between £300,000 and £5 million

by Aaron Strutt

May 11 2026

Nationwide Building Society is lowering rates and offering a market-leading two-year fix at 4.35% and a leading 5-year fix at just below 4.45%. Borrowers need to raise between £300,000 and £5 million to access Nationwide’s lowest rates, but the rates are not that much more expensive if you want a smaller loan size. 

Nationwide, NatWest and Virgin Money are improving mortgage rates from 12 May 2026, giving borrowers another sign that the mortgage market is becoming more competitive. The reductions come as lenders fight harder for purchase, remortgage and product transfer business, particularly from borrowers with strong deposits or higher levels of equity.

Nationwide has announced price cuts of up to 0.36%, with some of the biggest reductions aimed at first-time buyers. Its five-year fixed rate aimed at buyers with a 10% deposit, with a £999 arrangement fee, has been reduced to just below 4.9%, while its equivalent with a 15% deposit has fallen to below 4.80%. For home movers, Nationwide’s two-year fixed rate for those with a 40% deposit with a £1,499 fee has dropped to 4.35%, one of the most competitively priced deals on the market.

Virgin Money and NatWest are also improving mortgage rates

Virgin Money is reducing selected purchase and remortgage rates. Its two-year fixed purchase rates are being cut by up to 0.26%, five-year fixed rates by up to 0.24%, and shared ownership rates by up to 0.26%. Virgin Money’s two-year fixed remortgage rates are falling by up to 0.24%, while five-year fixed remortgage rates are being reduced by up to 0.10%.

Aaron Strutt, product director at Trinity Financial, says: “It is encouraging to see Nationwide, NatWest and Virgin Money cutting mortgage rates at the same time. This shows lenders are still keen to attract borrowers, especially those with larger deposits or more equity in their homes. The cheapest headline rates can look attractive, but borrowers need to factor in arrangement fees, loan size restrictions and whether a two-year fix or tracker, or a three-year or five-year fix is the best option for them.”

The rate cuts should help first-time buyers, home movers and remortgage customers who have been waiting for pricing to improve. However, many borrowers coming off older fixed rates are still likely to face higher monthly repayments, so it is important to compare deals carefully.  Trinity Financial’s brokers are helping clients compare rates from Nationwide, NatWest, Virgin Money, HSBC, Santander, Barclays and other lenders to work out which mortgage offers the best overall value.

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

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