Markets anticipate the base rate will remain unchanged for the rest of 2026, with the next decision due on July 30

Nationwide Building Society has cut mortgage rates for the third time in a month, lowering the cost of borrowing across a wide range of fixed and tracker deals.

The latest reductions, which take effect from Tuesday 7 July, will benefit first-time buyers, home movers, remortgagers and existing customers switching deals.

Fixed mortgage rates have been reduced by up to 0.19 percentage points across Nationwide's two, three, five and 10-year products, while selected two-year tracker mortgages have been cut by up to 0.12 percentage points.

The changes apply to products with loan-to-value ratios of up to 95 per cent, giving borrowers with smaller deposits access to the lower rates.

Among the remortgage deals, Nationwide has reduced its two-year fixed mortgage at 90 per cent loan-to-value with a £999 fee to 4.99 per cent.

A fee-free version at the same loan-to-value has fallen by 0.19 percentage points to 5.20 per cent.

Borrowers with more equity can now secure a five-year fixed mortgage at 60 per cent loan-to-value for 4.49 per cent with a £999 fee.

First-time buyers will also benefit from the latest changes. A five-year fixed deal at 60 per cent loan-to-value with a £999 fee has been reduced by 0.19 percentage points to 4.37 per cent, while a five-year fix at 95 per cent loan-to-value is now available at 5.08 per cent.

Existing Nationwide customers switching to a new mortgage deal will continue to receive rates that match or improve on those available to remortgage customers under the building society's pricing pledge.

The latest reductions come as competition between major lenders continues to intensify, with banks and building societies increasingly cutting rates in a bid to attract new borrowers and retain existing customers.

Nationwide said customers switching to a new deal will continue to receive rates that are the same as, or lower than, equivalent remortgage products.

First-time buyers will also receive £500 cashback when they complete their mortgage. Buyers purchasing an energy-efficient home can also qualify for up to £500 through Nationwide's Green Reward scheme.

Carlo Pileggi, Nationwide's Head of Mortgage Products, said: "Another set of rate cuts across our mortgage range is further proof that Nationwide is an all-round lender committed to supporting all types of borrowers.

"The changes we're making tomorrow will ensure we remain competitive and continue to be front of mind for brokers and customers alike in a fast-moving mortgage market."

The building society continues to guarantee that existing customers approaching the end of their current deal receive rates matching or beating those available to new remortgage applicants.

First-time buyers completing their mortgage with Nationwide receive £500 cashback, with an additional £500 available through the Green Reward scheme for those purchasing energy-efficient homes.

Nationwide's latest move forms part of a wider pattern of fixed mortgage rate reductions across the industry, with NatWest, Barclays, TSB and Santander also trimming their pricing in recent weeks.

Yorkshire Building Society has cut rates twice within seven days.

The Bank of England maintained its base rate at 3.75 per cent on 18 June, the fourth consecutive meeting without a change, with the Monetary Policy Committee voting seven to two in favour of holding steady.

Markets anticipate the rate will remain unchanged for the rest of 2026, with the next decision due on 30 July.

Average two-year fixed rates stood at 5.55 per cent as of 2 July, with five-year fixes at 5.54 per cent.