Nationwide has announced a major round of mortgage rate cuts, with new deals dropping as low as 3.54%. The building society said the reductions will come into effect on Friday, February 13, and will apply across its fixed-rate range. The move will benefit first-time buyers, home movers, remortgagers and existing customers looking to switch onto a new deal.

The lender confirmed that rates across two, three and five-year products will fall by up to 0.16%. It means Nationwide’s lowest rate is now 3.54%, available to both new and existing customers who are moving home. Carlo Pileggi, Nationwide’s Head of Mortgage Products, said the decision forms part of an ongoing review of pricing.

He added: “We review our mortgage rates on an ongoing basis to ensure they are sustainable and competitive for customers. These latest rate cuts are great news for first-time buyers and home movers, who will see the biggest benefit.”

The reductions cover a wide range of loan-to-value (LTV) bands. For first-time buyers, cuts of up to 0.16% have been applied across the board.

Key changes include a three-year fixed rate at 90% LTV with a £999 fee falling to 4.40%, and a two-year fixed at the same LTV and fee dropping to 4.10%.

At 60% LTV, a two-year fix with a £1,499 fee has been reduced to 3.67%.

First-time buyers will also continue to receive £500 cashback when their mortgage completes. Anyone purchasing an energy-efficient property can also benefit from up to £500 cashback through Nationwide’s Green Reward scheme.

For home movers, both new customers and existing Nationwide borrowers, rates are being cut by up to 0.15%.

This includes the new headline rate of 3.54% for a two-year fix at 60% LTV with a £1,499 fee.

A five-year fix at 85% LTV with the same fee has dropped to 3.94%, while a two-year fix at 85% LTV with a £999 fee is now 3.78%.

The lender said its pricing pledge remains in place, meaning existing customers moving home will pay the same or less than new customers taking out the equivalent deal.

Remortgage rates are also falling by as much as 0.15%. A three-year fixed product at 60% LTV with a £999 fee is now 3.80%, while a five-year fix at 80% LTV has fallen to 4.04%.

Switcher products, for existing Nationwide customers coming to the end of their current deal, are being cut by up to 0.11%. A three-year fix at 80% LTV with a £999 fee now stands at 4.05%, while a five-year fix at the same LTV is 3.99%.

The wider industry has reacted to the news, with brokers suggesting the cuts could prompt other lenders to follow.

Emma Jones, Managing Director at Whenthebanksaysno.co.uk, said: “Nationwide have just gone and put the cat among the pigeons. These are not insignificant cuts and could see other lenders follow suit in the days ahead. Great news for borrowers.”

Babek Ismayil, CEO at homebuying platform OneDome, said the move sends “a strong message of intent”. He added: “After the weak GDP data published on Thursday, the pressure must surely be growing on the Bank of England to reduce the base rate if inflation starts to cool. The economy needs it, and borrowers certainly need it.”

Others believe the announcement could trigger a wave of competition. Daniel Hobbs, CEO at New Leaf Distribution, said: “These cuts from the Nationwide could trigger a domino effect. It’s felt like they were coming all week from one lender and Nationwide have stepped up to the plate.”

Justin Moy, Managing Director at EHF Mortgages, said the new pricing represents a near-reversal of rises Nationwide imposed last week.

He said: “Swap rates have improved, helping both short and long-term deals. Brokers and borrowers will be braced for a wave of similar improvements from high street lenders.”

Jack Tutton, Director at SJ Mortgages, welcomed the shift after a turbulent start to the year.

He said: “The rollercoaster that has been mortgage rates in 2026 has started heading down again which will be very much welcomed by mortgage holders.”

And Ranald Mitchell, Director at Charwin Mortgages, said the announcement shows competition is returning.

He said: “Nationwide blinking first is the clearest sign yet the fixed-rate price war is back and borrowers are the winners. A 3.54% headline rate will grab attention and it’ll force rivals to respond.”