Lenders Cut Fixed Mortgage Rates by Up to 0.36% (May 2026)

Three of the UK's biggest mortgage lenders — Nationwide, NatWest and Virgin Money — are reducing fixed-rate mortgages from Tuesday, 12 May 2026.

Nationwide is leading the way with cuts of up to 36 basis points (0.36 percentage points) across two-, three- and five-year fixed products. NatWest is launching market-leading new fixes at 4.49% (two-year) and 4.67% (five-year), and Virgin Money is reducing purchase and remortgage rates by up to 26 basis points.

For borrowers, this is a clear signal that the recent wave of repricing has shifted direction — and there are now more competitive deals on the table for first-time buyers, home movers and remortgage customers alike.

Nationwide is making its biggest reductions on first-time buyer products up to 95% LTV.

Highlight rates from 12 May 2026 include:

• 5-year fix at 90% LTV, £999 fee — 4.89% (down 36bps)
• 5-year fix at 85% LTV, £999 fee — 4.79% (down 34bps)
• 2-year fix at 85% LTV, £999 fee — 4.69% (down 26bps)
• 2-year fix at 60% LTV, £1,499 fee — 4.48% (down 18bps)

First-time buyers completing a mortgage with Nationwide will also receive £500 cashback. Buyers purchasing an energy-efficient property may qualify for up to a further £500 through Nationwide's Green Reward scheme.

For existing and new customers moving home, Nationwide is reducing rates by up to 24bps across two-, three- and five-year fixes up to 95% LTV. New rates include:

• 2-year fix at 60% LTV, £1,499 fee — 4.35% (down 15bps)
• 5-year fix at 60% LTV, £999 fee — 4.49% (down 24bps)
• 5-year fix at 75% LTV, £999 fee — 4.59% (down 19bps)
• 2-year fix at 90% LTV, £999 fee — 4.89% (down 20bps)

Nationwide says existing customers moving home continue to be offered rates equal to or lower than those available to new customers.

Remortgage rates are being cut by up to 24bps across two-, three- and five-year fixes up to 90% LTV. Headline new rates:

• 2-year fix at 75% LTV, £999 fee — 4.76% (down 24bps)
• 2-year fix at 60% LTV, £1,499 fee — 4.63% (down 22bps)
• 5-year fix at 85% LTV, £999 fee — 4.94% (down 6bps)

Carlo Pileggi, head of mortgage products at Nationwide, said: "We're pleased to be cutting our mortgage rates once again, with the biggest reductions this time aimed at first-time buyers. Some of our biggest rate cuts are being made on our higher loan-to-value mortgages, which will help those with smaller deposits to take their first step on to the property ladder. However, Nationwide remains an all-round lender and these rate cuts reflect our broader aim of supporting customers at every stage of homeownership."

As a result of the latest reductions, Nationwide's lowest rate falls to 4.35%.

NatWest is launching a two-year fix at 4.49% and a five-year fix at 4.67%, marginally undercutting Santander's new rates which came into effect the day before.

This sets a new competitive benchmark across the high street. Borrowers with healthy deposits and clean credit histories will now see notably more sub-4.70% options across both fixed-rate periods than they did just weeks ago.

Virgin Money is making rate changes from 12 May too:

• Purchase products: two-year fixes down by up to 26bps, five-year fixes by up to 24bps, and shared ownership fixes by up to 26bps.
• Remortgage products: two-year fixes down by up to 24bps and five-year fixes by up to 10bps.

The May cuts are good news after a volatile spring. March saw Nationwide, Virgin Money and NatWest all raise rates as swap rates surged on Middle East uncertainty. Funding markets have since stabilised, and lender competition is doing the rest.

Practical points for borrowers:

• First-time buyers with smaller deposits benefit most from this round — Nationwide's 95% LTV pricing is materially lower than it was in March.
• Remortgage customers coming off a rate this year should compare across the whole market: NatWest's 4.49% two-year is sharp, but cheaper deals exist for lower LTVs.
• Home movers may also benefit from porting if their existing rate is below the new pricing.
• If you're close to completion, ask your broker to check whether you can switch onto a lower rate before drawdown — most lenders allow this.

You can also use our free mortgage repayment calculator to see what these new rates mean for your monthly payments, or compare today's pricing on our Best Mortgage Rates page.

Brokers are warning that short-term direction remains hard to call. With more lenders now offering two-year fixes below 4.5% and five-year fixes priced at 4.70% or slightly lower, pricing is in a noticeably better place than just a few months ago — but anticipated funding-cost spikes have not yet materialised, and a renewed swap rate move could quickly change the picture.

The sensible play remains the same: secure a rate early, then keep it under review. As a fee-free, directly authorised broker, The Mortgage Genie can quickly compare these new Nationwide, NatWest and Virgin Money deals against more than 90 other lenders to find the best fit for your circumstances.

If you're a first-time buyer, home mover, or your existing deal is ending in the next 6 months, now is a sensible time to act.

The Mortgage Genie is a directly authorised, fee-free mortgage and protection brokerage with access to 90+ UK lenders. We'll compare the new Nationwide, NatWest and Virgin Money rates alongside the wider market and help you secure the right deal — without charging you a penny in advice fees.

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