Nationwide offering fixed rates from 3.54% again bucking the trend of rate hikes across the mortgage market

by Aaron Strutt

Feb 13 2026

Nationwide Building Society has improved the pricing on many of its fixed-rate mortgages following several weeks of rate increases across the market. Nationwide lowered its rates by up to 0.16%, bucking the trend of price rises, and now offers two-year fixes from 3.54%.  

Nationwide has lowered rates across its property purchase, remortgage, and first-time buyer ranges for borrowers with deposits of between 5% to 40%. The lender has lowered its two, three and five-year fixes, but not its ten-year fixes or two-year trackers.

Nationwide's 3.54% rate is available on mortgages between £300,000 and £5 million, with a £1,499 arrangement fee. Applicants will need a 40% deposit to qualify, and the rate is 3.59%, with a £999 fee for mortgages up to £300,000. 

Santander has just announced a range of rate changes, with many of its first-time buyer rates lowered by up to 0.32%. Its residential home mover, including new-build fixed rates, has been lowered by up to 0.08%, and larger mortgage loan rates are down by up to 0.06%. The bank is increasing many of its best buy fixed rates by up to 0.07%.

Aaron Strutt, product director at Trinity Financial, says: "There have been some really competitively priced mortgages to choose from despite the rate increases. A couple of lenders have recently lowered their rates, including TSB and Generation Home, which suggests rate rises may have paused for a while. 

"The best buys now include Nationwide’s 3.54% two-year fixed rate and its sub-3.70% three-year fix. HSBC for Intermediaries is offering five-year fixes starting from just under 3.80%, which is still pretty good."

What is likely to happen to fixed rates and the Bank of England base rate? 

The Bank of England kept the base rate at 3.75% for February, but Bank deputy governor Sarah Breeden said it was ‘reasonable to expect there to be a cut over the next couple of meetings’.

According to the latest Arbuthnot Latham update, money markets have repriced the probability of a March rate cut to 70% following the surprisingly close call at the recent MPC meeting, with a year-end rate forecast of 3.25%. This means we may well get cheaper fixed rates again over the coming months. 

Representative example for Nationwide's 3.54% rate: A capital and interest Nationwide mortgage of £500,000 payable over 30 years, initially on a 3.54% 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 £2,263.23 followed by 336 monthly repayments of £3,115.84. The total amount repayable would be £1,101,239.76.

This amount is illustrative and may vary, made up of the loan amount, plus interest (£599,726.43) 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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