Nationwide still offering fixed mortgages from 3.87% despite recent price rises

by Aaron Strutt

Sep 08 2025

Some of the biggest banks and building societies have increased their mortgage rates over the last few days, including Nationwide, HSBC and Halifax. Despite the rising rates, most mortgages are still well-priced.

Nationwide for Intermediaries offers a two-year fixed-rate mortgage at 3.87% and the lender has a five-year fix at just below 3.99%. These rates undercut many of the other big banks and building societies.

Nationwide’s most competitive rate is 3.87%, and it is available for homebuyers to borrow between £300,000 and £5 million. There is a £1,499 arrangement fee, and applicants must make a 40% deposit to qualify. The sub 3.99% five-year fix has the same minimum and maximum loan sizes and the same arrangement fee.

Aaron Strutt, product director at Trinity Financial, says: "Mortgage rates have been edging up recently, and while they are more expensive, they still offer good value for money. It seems likely that other lenders will push up their rates this week. Not all lenders are increasing their rates; some specialist providers are actually cutting prices. For example, Kensington has reduced its prices by up to 0.44%.

"One of the good things about Nationwide is the way borrowers can book a rate for up to 90 days, providing a mortgage offer is produced in that time. Other lenders do not allow their decisions in principle to last so long."

Representative example: A capital and interest Nationwide mortgage of £400,000 payable over 30 years, initially on a two-year fixed rate basis at 3.87% for two years and then on the lender's 6.74% standard variable rate for the remaining 28 years. The 3.87% rate would require 24 monthly repayments of £1,879.80 followed by 336 payments of £2,552.95. The total amount repayable would be £904,420.40 made up of the loan amount, plus interest (£502,906.17) and £1,499 (product fee), £65 (final repayment charge), £15 (completion fee). The overall cost for comparison is 7.1% APRC representative.

Greatest number of low-deposit deals for 17 years: Moneyfacts

The number of mortgage deals available for borrowers with a 10% or 5% deposit reached its highest level for 17 years this month, figures from Moneyfacts show. There are 464 deals for those with a 5% deposit and 896 deals with a 10% deposit, meaning a combined total of 1,360 product options for borrowers with a deposit of 10% or under. There are also more lenders offering really low deposit mortgages for those with less than 5% to put down.

Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

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

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