Two Major Lenders Announce Sub 4% Mortgage Rates: Nationwide and Barclays Launch New Mortgage Products for 2025

Nationwide and Barclays have become the first lenders in 2025 to introduce residential mortgage rates below 4%.

Nationwide Building Society, the UK’s largest building society, is set to reduce mortgage rates on selected fixed-rate deals by up to 0.25 percentage points. From Friday 28th February, some rates will drop below four per cent.

The updated rates include a five-year fixed “switcher” mortgage at 3.99 per cent for existing Nationwide customers nearing the end of their current deal. This offer requires a 40 per cent deposit and carries a £999 fee. New customers looking to remortgage will also have access to rates as low as 3.99 per cent.

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Barclays is also reintroducing sub-4% fixed-rate deals starting tomorrow. This includes two five-year fixed-rate products:

A Premier five-year fixed-rate mortgage at 3.99% (up to 60% LTV) with an £899 product fee.

A Green Home five-year fixed-rate mortgage, also reduced to 3.99%.

Alongside these, Barclays has implemented widespread rate cuts across its residential and buy-to-let mortgage ranges. The lender’s lowest two-year fixed-rate purchase product is now available at 4.21% with an £899 fee, while a two-year remortgage option at 60% LTV has been reduced to 4.20%.

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