Nationwide Building Society is cutting the mortgage rates it is offering by up to 0.25 percentage points from Wednesday.
The rate reductions are being made on two, three, five and 10-year fixed-rate products.
The new deals will include a two-year fixed-rate home mover mortgage for borrowers with a 40% deposit, with a rate of 3.64%, reduced by 0.16 percentage points. The mortgage has a £1,499 fee.
The society will also offer a two-year fixed rate remortgage deal at 3.79%, reduced by 0.15 percentage points, for borrowers with a 40% deposit. The mortgage also has a £1,499 fee.
The minimum loan size on £1,499 fee products is £300,000.
Nationwide will also offer a two-year fixed rate for borrowers with a 10% deposit at 4.79%, reduced by 0.25 percentage points. The deal, which has no fee, is available to existing Nationwide customers coming to the end of their current mortgage deal.
Carlo Pileggi, Nationwide’s head of mortgage products, said: “We’re making rate cuts across the majority of our fixed rate mortgage range with a number of sub-4% products.”
The reductions will be made ahead of the next Bank of England base rate decision on Thursday.
Moneyfactscompare.co.uk said earlier this week that average mortgage rates dipped back below 5% in November, after rising above that point last month.
The website said that before September 2025, the average mortgage rate had not dipped below 5% since September 2022.
HSBC UK announced on Monday that it had introduced a new maximum mortgage loan-to-income (LTI) ratio of up to 6.5 times annual income for its Premier customers.
To qualify for HSBC Premier, customers must have an annual income of at least £100,000 paid into an HSBC Premier account, or hold £100,000 or more in savings or investments with the bank.
And Nationwide said on Monday that it was expanding its interest-only mortgage offering, as well as widening the range of repayment options that it will accept beyond the sale of the main residence, to include UK-based savings, investments, pension funds and other properties.
Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Swap rates are currently sitting around their 30-day lows, so it is possible that more reductions could follow suit, however with the next base rate decision looming it is not yet certain how the swap markets will react.
“The borrowers that can afford a 40% deposit may certainly find the headline rate appealing, and if they make regular overpayments on a low rate, that could set them up nicely for when they come to refinance. Remortgage customers will also feel the relief as they could see their monthly repayments drop significantly.”
