Nationwide Cuts Mortgage Rates, Boosts Borrowing Power Nationwide

Nationwide Building Society has announced cuts to its mortgage rates, reducing selected two, three, and five-year fixed rate products by up to 0.25 percentage points, with rates now starting below 4% for borrowers with substantial deposits. The new rates, including a two- or five-year fix at 3.89% for those with a 40% deposit, are among the most competitive currently available and are aimed at both new and existing customers moving home. Alongside this, HSBC UK and First Direct have adjusted their affordability stress rates, a move expected to boost borrowing power for many applicants—HSBC estimates up to 20,000 more customers could qualify for mortgages, while First Direct says about 85% of applicants may see an average borrowing increase of £22,000. These changes across lenders are partly in response to expectations that the Bank of England will cut its base rate more often than previously anticipated this year. Experts note that while these reductions are significant, further drops in mortgage rates may be limited. The Financial Conduct Authority is also reviewing mortgage lending rules, potentially making it easier for more people to access home loans.