Several major mortgage lenders will reduce their rates on Friday, with a wave of banks and building societies making rate cuts this week.
Nationwide Building Society said that, from Friday, it will cut rates across its fixed mortgage range for first-time buyers and home movers.
It will reduce rates by up to 0.25 percentage points across two, three and five-year fixed rate products.
The new rates will include a five-year fixed-rate first-time buyer mortgage for borrowers with a 10% deposit at 5.25%, reduced by 0.25 percentage points. The deal has a £999 fee.
First-time buyers also receive £500 cashback when they complete their mortgage with Nationwide.
For home movers, Nationwide is offering a two-year fixed-rate mortgage for borrowers with a 40% deposit at 4.50%, reduced by 0.16 percentage points. The deal has a £1,499 fee.
Carlo Pileggi, Nationwide’s head of mortgage products, said: “We’re delighted to be able to make cuts to our mortgage rates to support both first-time buyers and those looking to move to their next home.
“These changes apply across those ranges, with some of our largest cuts being made on higher loan-to-value mortgages, which will benefit first-time buyers looking to get onto the property ladder.”
Halifax Intermediaries has also said it will make rate decreases of up to 0.15 percentage points on fixed-rate mortgages for home movers and first-time buyers from Friday.
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First Direct also lowered rates across dozens of two and five-year fixed mortgage products on Thursday, with decreases of up to 0.38 percentage points.
Liam O’Hara, head of mortgages at First Direct said: “We are committed to supporting our customers on their house purchase journey and continue to review our pricing regularly to ensure the best value we can for all our customers.”
HSBC UK also reduced rates across its mortgage products on Thursday, with rate reductions of up to 0.25 percentage points.
The rate reductions offer support to first-time buyers, home movers and those seeking a buy-to-let mortgage, the bank said.
HSBC’s deals include a five-year mortgage for first-time buyers with a 15% deposit at 5.04%, down by 0.13 percentage points. The deal has a £999 fee and comes with £750 standard cashback, increasing to £1,500 for energy efficient homes.
Virgin Money also cut some mortgage rates from Thursday, including for home buyers and people remortgaging, as well as on buy-to-let products.
Earlier this week, Santander announced plans to cut rates on lower deposit first-time buyer and home mover mortgage products from Friday.
The reductions include Santander’s 98% LTV (loan-to-value), My First Mortgage product which is reducing by 0.25 percentage points to 5.60%.
It will also launch first-time buyer products including a 5% deposit three-year fixed-rate mortgage at 5.55% with no fee and £250 cashback.
Barclays and Skipton Building Society also reduced their mortgage rates on Wednesday.
Swap rates, which are used by lenders to price mortgages, have been easing. The conflict in the Middle East has caused market volatility and pushed up expectations around interest rates staying higher for longer.
Some lenders making cuts this week also made mortgage rate reductions last week.
But despite the recent rounds of rate cuts, typical fixed mortgage rates remain elevated, compared with the start of March.
The average two-year fixed-rate homeowner mortgage was 4.83% at the start of March and was 5.82% on Thursday morning, according to financial information website Moneyfacts.
The average five-year fixed-rate mortgage has risen from 4.95% at the start of March to 5.72% on Thursday morning, the website added.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said Nationwide’s mortgage rate cuts are a “positive signal” for borrowers looking to buy their first home or to move.
She said: “New buyers usually have very little to put down as a deposit, so it’s great to also see cuts to deals at higher loan-to-values.
“Nationwide will now offer some of the lowest fixed rates across the market, such as with its two-year fixed deal at 60% LTV priced at 4.50% for home movers, a highly attractive rate in the current market.
“We have had numerous mortgage rate cuts over recent days, and tomorrow, Santander will make further cuts of up to 0.25 (percentage points), after making cuts of up to 0.28 (percentage points) just last Thursday.
“Borrowers will hope the positive sentiment to cuts continues as last week, the rate moves led to the first week-on-week fall in average fixed rates since the conflict in the Middle East began.”
Ms Springall added: “As things stand, rates are moving lower than they were set a week ago, but there is no telling how many more cuts we might get in the days ahead.
“It will be a refreshing change for borrowers who have endured mortgage mayhem since the start of March.
“Lenders will be looking to reprice to catch up to moving swap rates, but also to compete for new business, it’s all in the margins.
“Any borrower concerned about securing a mortgage would be wise to seek advice from a broker to navigate the mortgage maze.”
David Fell, lead analyst at Hamptons, said: “The downward drift in mortgage pricing over the last week or so is a reflection of a significant shift in market sentiment.
“In late March, swap rates had priced in the possibility of three interest rate hikes by the end of the year.
“However, that outlook has since shifted significantly, with the market now pricing in just over one hike by the end of 2026.
“This pivot has given lenders breathing room to make rate reductions and pass savings on to borrowers, first-time buyers in particular.”