Nationwide, Halifax and Virgin Money have cut mortgage rates less than 48 hours after the Chancellor delivered her Autumn Budget.
Sign up to our newsletter
The contents of Rachel Reeves’ long awaited fiscal statement might not have given much festive cheer to homeowners, but these latest round of mortgage cuts could provide just the tonic needed.
Nationwide announced yesterday it was making cuts of up to 0.19% on its fixed rate mortgages for both new and existing customers.
The building society’s lowest rate is now 3.60% – this is available through a deal for those moving home with at least 40% equity. The two-year fix comes with a £1,499 fee.
But those with a smaller deposit can take advantage of rates as low as 3.99% through Nationwide’s newly priced five-year fixed rate at 75% loan-to-value (25% deposit). This one has no fee. And there’s another five-year fix for those borrowing at 85% LTV which has a rate of 3.96% with a £1,499 fee.
It soon emerged, Nationwide was not the only lender helping to take the sting out the Budget’s tail. Virgin Money announced it was cutting selected rates by up to 0.19%. Then Halifax revealed it was making cuts of up to 0.2% on selected three-year fixed rate mortgages for those looking to buy with less than a 10% deposit.
Omer Mehmet, managing director at Welling-based Trinity Finance, speaking to the Newspage agency, explained businesses had been ‘hammered’ by the Budget and Swap rates – which lenders use to set their pricing – had been ‘bumping up and down’ as a consequence. He thought lenders were making price cuts in a bid to get the market moving.
“It’s been a quiet couple of months in the property market but when a lender like Nationwide makes its move, others often follow,” he said.
Meanwhile Ken James, Director at London-based Contractor Mortgage Services, speaking to Newspage, thought the certainty following the Budget had helped to create a shift in the market.
“With the dust settling on the Autumn Budget 2025, the mood of the UK mortgage market is shifting and, for borrowers, that could mean some early festive joy,” he said.
“After weeks of uncertainty, lenders are now rolling back mortgage rates, offering hope to homeowners and those looking to remortgage.
“Halifax has followed the lead of Nationwide and Virgin Money by trimming selected fixed-rate deals. This wave of cuts is being driven by a combination of subdued market reaction to the Budget and shifting expectations that the Bank of England could begin trimming its base rate soon.
“For many homeowners and prospective buyers, this feels like a Christmas gift especially coming when rates had been stubbornly high all year. In a housing market where every rate cut counts, these drops could make a meaningful difference in monthly repayments.”
