In a significant move for the UK property market, Nationwide Building Society is implementing a series of mortgage rate reductions through its specialist lending arm, The Mortgage Works. The changes, which come into effect on Saturday, 17 January 2026, will see selected fixed-rate products for landlords become cheaper by as much as 0.15 percentage points.
Details of the Rate Reductions
The cuts apply to a range of two, three, and five-year fixed-rate buy-to-let mortgages for both new borrowers and existing customers looking to switch. The reductions are targeted at limited company buy-to-let products and existing customer switchers, offering landlords potential savings on their financing costs.
For new business, notable rate changes include a five-year fixed mortgage available at 4.02%, reduced by 0.10%. This product comes with a 5% fee and is available up to 70% loan-to-value (LTV), including a free valuation. Another five-year fix for new customers is now priced at 4.44% (down 0.08%) with a 3% fee, up to 75% LTV. A further option is set at 4.89% (down 0.05%) with a £1,495 fee, also up to 75% LTV.
Benefits for Existing Landlord Customers
Existing customers of The Mortgage Works are also set to gain from the rate shake-up. Switcher products for landlords include a competitive two-year fixed rate at 2.72% (reduced by 0.12%) with a 3% fee, available up to 65% LTV. A fee-free two-year fix is now offered at 4.25% (down 0.09%), while a five-year fix for existing customers is priced at 3.54% (down 0.05%) with a 3% fee.
Keir Fraser, Lead Manager at The Mortgage Works, commented on the strategic decision: “We are always looking for ways to offer landlords our best range of products, so we’re delighted to be able to start the year with rate cuts for new and existing customers across our mortgage range.”
Impact on the UK Mortgage Landscape
This move by Nationwide, a financial giant connected with one in three people in the UK and the nation's second-largest mortgage provider, is likely to stir competition in the buy-to-let sector. The rate cuts signal a proactive step to support landlords amid evolving market conditions and could make property investment more accessible for some.
The announcement underscores Nationwide's significant role in the UK's financial services sector, where it is also a major player in retail deposits, current accounts, credit cards, and business banking. For landlords and property investors, reviewing these new rates could lead to substantial long-term savings.
