Major bank cuts mortgage rates to lowest level in months - with new deals below 4 percent

A major British bank has cut its mortgage rates by almost one percent and is now offering deals below 4 percent. Nationwide, the world's largest building society, is one of the UK's largest providers for mortgages as well as being a major provider of ISAs, credit cards, personal loans, and insurance.

The popular bank has announced today (January 23) that effective from tomorrow (January 24), it will be reducing selected rates by up to 0.81 percent whilst introducing a new range of fixed and tracker rate products with a £1,499 fee. These changes mean Nationwide’s rates start at 3.84 percent - its lowest level in eight months.

It comes as the Bank of England's continuous rising of interest rates last year pushed mortgage rates up to their highest level, making monthly repayments hundreds of pounds more expensive for homeowners amid the cost of living crisis.

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Nationwide's new rates aim to help first-time buyers as well as new and existing customers who have a mortgage with the bank. Henry Jordan, Director of Home at Nationwide Building Society, said: “As one of the largest lenders in the country, we remain as committed as ever to supporting borrowers.

"These latest changes mean we are now offering sub-four percent rates for the first time in eight months. These reductions will ensure that we have some of the lowest rates on the market for all types of borrowers whether it be first-time buyers, home movers or those looking to remortgage or switch deal."

The new rates include:

New customers moving home: reductions of up to 0.80 percent across two, three, five