Latest Mortgage News – Forbes Advisor UK

13 October 2025: Average Fixed Rates Rise For First Time In 8 Months – Moneyfacts 

Lenders are continuing to nudge up the cost of fixed rate deals as market uncertainty grows over the direction of interest rates, writes Jo Thornhill. 

Experts believe higher than expected inflation and low economic growth figures could push the Bank of England to keep the benchmark Bank Rate higher for longer. But this means some lenders, who had aggressively cut their fixed mortgage rates in anticipation of faster falls in interest rates, are now adjusting those rates back up again. 

Figures released by financial data company Moneyfacts show that the average two- and five-year fixed rates are up month-on-month in October for the first time since February. The average rates for two- and five-year fixed deals both increased by 0.02 percentage points, to 4.98% and 5.02% respectively. 

HSBC and Santander are the latest big brand lenders to announce increases to fixed rates. They follow a broad range of other lenders who have also pushed up fixed rate deals for mortgage borrowers in recent weeks (see stories below). 

Mortgage rate round-up 

Santander has increased selected residential fixed rates by up to 0.1 percentage points, including first time buyer deals for borrowers with between 15% and 5% cash deposit (85% LTV to 95% LTV). It has a five-year first-time buyer deal at 4.4% with a £999 fee (90% LTV). Residential product transfer deals, for existing customers looking for a new rate, have increased by up to 0.5 percentage points. 

But the high street bank has reduced the rates on selected two-year fixed BTL remortgage rates at 60% LTV, while increasing five-year fixed rate BTL deals at 65% and 75% LTV. 

HSBC has increased the cost of selected two- and five-year fixed rates for first-time buyers and home movers. But the bank has pushed up rates for buy-to-let purchase and remortgage deals. It has a five-year first-time buyer deal at 4.37% with a £999 fee (90% LTV). 

Katherine Stagg, founder of broker Stagg Mortgages, says recent price movements, both up and down, are due to a range of factors: “Swap rates, which are the backbone of fixed-rate pricing have been volatile, and recent fluctuations have made lenders more cautious, prompting them to reprice upwards. 

“September saw a change in strategy with less aggressive rate-cutting. Mortgage products have also had a longer shelf-life, suggesting a calmer market. 

“In other cases lenders are adjusting rates to manage pipeline volumes or hit year-end targets, especially as product choice remains high at 95% and 90% LTV tiers.” 

8 October 2025: Lenders Repricing To Control Business Volumes

Lenders continue to tweak fixed rate pricing both upwards and downwards, as the outlook for interest rates is uncertain but competition within specific sectors of the market remains fierce, writes Jo Thornhill. 

Brokers say the mixed picture on fixed rate changes is due to individual lenders controlling their business volumes, either looking to compete in a particular sector, such as first-time buyers, or pushing up fixed rates to reduce new business. 

Swap rates, the interest rates at which banks lend to each other in the markets and which have an influence on fixed mortgage rates, have also risen in recent weeks. 

Nick Mendes, broker at John Charcol, said: “Rates remain stable with modest day-to-day adjustments. Swap rates are lower than a year ago but a bit higher than early September which explains the recent fine tuning after summer’s rate reductions. 

“Pricing is also being used to regulate pipeline and protect margins which is why we have seen some rate cuts alongside selective increases. I expect we’ll see a gradual and uneven easing on fixed rates rather than a wholesale shift.” 

Mortgage rate round-up 

Halifax has increased the cost of selected fixed rate deals by up to 0.13 percentage points for purchase and remortgage. The lender’s two-year remortgage fixed rates start from 3.74% with a £1,999 fee (60% loan to value) with a minimum loan amount of £250,000.

At the same time Halifax has lowered the cost of selected first-time buyer and purchase deals by 0.05 percentage points. Its five-year fixed rate at 95% LTV is at 4.42% with a £999 fee, or at 4.38% (minimum loan size £250,000) and a fee of £1,999. 

Barclays has pushed up fixed rate pricing on selected purchase deals by up to 0.07 percentage points. Green mortgages, deals for Premier banking customers and some higher loan-to-value deals are affected. The lender is now offering a two-year purchase fixed rate for buyers with a 10% deposit (90% LTV) priced at 4.35% with an £899 fee, and a two-year deal at 95% LTV with no fee priced at 4.92%. 

NatWest has nudged down the cost of selected deals aimed at first-time buyers by up to 0.04 percentage points. It has a fee-free two-year fixed rate at 4.93%, and an equivalent five-year fix at 4.85% both available for a 5% deposit.

Buckinghamshire building society has cut rates on its fixed rate deals for borrowers with less than perfect credit by up to 0.2 percentage points. It is offering a two-year fixed rate in its Credit Revive product range at 5.89% with a £999 fee (85% LTV). 

The Mortgage Works, the specialist lending arm of Nationwide building society, has expanded its range of deals for limited company landlords, as it says it responds to demand from this growing sector. As well as offering free legal work on a range of new fixed rate deals, it has launched a two and a five-year fixed rate limited company buy-to-let deal for houses of multiple occupancy (HMOs) with a £1,495 fee at 5.34% (two-year) and 5.39% (five-year) respectively. 

2 October 2025: Gen H Launches New ‘Part And Part’ Deal To Help First-Time Buyers 

HSBC has cut the cost of selected residential purchase and remortgage deals for new customers, while also increasing the cost of a broad range of product transfer deals for existing customers and buy-to-let fixed rates, writes Jo Thornhill.

These mixed rate changes come as the market adjusts to expectations that interest rates could be static for a prolonged period. 

Data from the Bank of England’s latest Money and Credit report also reveals mortgage advances for home purchase have slowed slightly, falling by 500 in August to 64,700.  

Experts suggest this could be in response to growing uncertainty around potential changes to stamp duty on higher value homes, and other new property taxes, which it has been rumoured the Chancellor has been weighing up for her Autumn Budget statement in November. 

Mortgage rate round-up 

HSBC has cut selected fixed rates for first-time buyers, home movers and remortgage customers across the full range of loan to value ratios. It has a two-year fixed rate for remortgage at 4.24% with no fee (60% LTV). But BTL fixed rates have increased. Two-year fixed rate BTL deals now starts from 4.01% with a £1,999 fee (60% LTV). 

Accord, the specialist lending arm of Yorkshire building society, has cut selected two and five-year fixed rate residential deals for borrowers with a 5% cash deposit by up to 0.1 percentage points. Its two-year deal at 95% LTV is now at 5.44% with no fee and with £300 cashback paid on completion. 

Principality building society has made a number of rate changes across its range, including increases to some deals and cuts to others. It has lowered the cost of some fixed rates by 0.05 percentage points. Some deals, including selected cashback deals and its joint borrower sole proprietor deals will increase in cost. The mutual lender has a two-year fixed rate for at 3.99% with a £1,499 fee (65% LTV). 

TSB has pushed up the cost of selected fixed rate deals for existing customers looking to transfer their existing deal or take out additional borrowing. The bank has nudged up the cost of two-year fixed rates at 60% LTV and three-year rates at 75% LTV by 0.05 percentage points.

West Bromwich building society has cut the cost of selected fixed rates for new borrowers by up to 0.13 percentage points. It’s offering a two-year fix for remortgage at 4.45% with a £999 fee at 90% LTV, and an equivalent deal at 4.74% at 95% LTV.

Gen H, the specialist lender aimed at first-time buyers, has launched a new part repayment-part interest-only mortgage deal, available up to 95% loan to value. Borrowers can take the mortgage at up to 80% LTV on an interest-only basis, which including the 5% cash deposit means the capital repayment part of the mortgage can be a minimum of 15%. Buyers will need a household income of at least £50,000 to be eligible. 

Nick Mendes, broker at John Charcol, said: “Part-and-part mortgages already exist, but Gen H stands out by offering this deal up to 95% loan to value (interest-only part up to 80%). The big advantage is flexibility, because borrowers who narrowly miss full repayment affordability can dial in an interest-only slice to bring the monthly cost within reach while still owning 100% from day one and retaining the ability to overpay.  

“The trade-off is that any interest only balance must still be cleared at the end of the term, so borrowers need a credible payment plan via overpayments, future income, or equity growth. Costs should also be assessed on a true cost basis rather than just the headline rate, including fees and any early repayment charges.” 

Find out what’s happening with today’s mortgage rates and calculate monthly repayments across a range of different rates and deals.

25 September 2025: Mixed Picture Remains As Barclays, Santander And Halifax Cut Costs On Low Deposit Deals

Lenders have pushed up the cost of fixed rate borrowing in recent days, while others have made cuts, as the market adjusts to expectations that the Bank of England Bank Rate will be frozen at 4% for longer, writes Jo Thornhill. 

Brokers say the mixed bag of rate changes is likely due to individual lenders trying to control their business volumes, rather than any market trends. 

Nick Mendes at mortgage broker John Charcol said: “Margins are already thin for lenders, so where there are cuts these are only marginal tweaks, mainly to stay a nose ahead of competitors. We’re seeing one or two lenders mirror the move and then reprice upwards again to manage their service levels.  

“The battleground now is deals at higher loan to value ratios (LTVs). That’s where we haven’t seen the same pace of rate cuts to date, and where more meaningful price competition could happen next. It’s good news for buyers with smaller deposits.” 

Halifax has pushed up rates on selected fixed rate deals available through brokers by up to 0.13 percentage points, for remortgage and product transfer deals (for existing customers). However, it has nudged down some first-time buyer and home mover rates by up to 0.14 percentage points. It has a two-year fixed rate for buyers with a 5% cash deposit (95% loan to value) at 4.76% with a £999 fee. 

NatWest has increased the cost of selected purchase and remortgage deals, as well as existing customer rates. The high street bank has also re-launched its buy-to-let mortgage range offering, among other deals, a two-year fixed rate for BTL remortgage (65% LTV) at 3.63% with a £3,999 fee. 

TSB has increased selected product transfer and additional borrowing fixed rates, for existing customers looking for a new deal, but only by up to 0.1 percentage points. 

Santander has increased the cost of first-time buyer deals at 85% LTV by 0.1 percentage points, but first-time buyer deals at 95% LTV have been cut by up to 0.19 percentage points. Other deals, including selected homemover and remortgage rates have been lowered in cost.

Barclays has cut selected deals, including rates at high loan to value ratios, by up to 0.1 percentage points. But is has also pushed up the cost of some of its remortgage fixed rates. It has a fee-free two-year fixed rate purchase deal at 4.87% for buyers with a 5% cash deposit (95% LTV), and a two-year purchase deal at 4.05% with an £899 fee for buyers with a 20% deposit (80% LTV). 

Virgin Money, part of Nationwide building society, has reduced selected fixed rates across its residential and buy-to-let range, including its two-year fixed rate for remotgage at 65% LTV which has been cut by 0.34 percentage points from 4.33% to 3.99%. The deal has a £995 fee. Its buy-to-let deals at 60% and 75% LTV have been cut by up to 0.15 percentage points, with two-year fixed rate deals starting from 2.83% with a 3% fee (60% LTV). 

18 September 2025: Mixed Picture On Fixed Rates As Bank Rate Held 

Nationwide building society has cut the cost of selected fixed rates by up to 0.18 percentage points, at the same time as Santander and TSB have pushed up borrowing costs. It comes as the Bank of England has held interest rates at 4%, writes Jo Thornhill. 

The Bank’s rate-setting Monetary Policy Committee (MPC) was widely expected to freeze rates after figures from the Office for National Statistics (ONS) yesterday showed annual inflation remained unchanged in August at 3.8%, a figure still well above the Bank’s 2% target.  

Interest rates are unlikely to fall further until there are signs inflation is easing. 

The next Bank of England decision on Bank Rate is scheduled for 6 November. 

Here’s a round-up of the latest movements from lenders on rates.

Nationwide has cut the cost of a broad range of its fixed rate deals, including first-time buyer and remortgage rates, plus deals for existing customers looking for a new fixed rate (product transfer rates). It has a two-year fixed rate for home purchase at 4.09% with a £999 fee for buyers with at least a 25% cash deposit (75% LTV). Its lowest product transfer deal is now a two-year fixed rate at 3.8% with a £1,499 fee (60% LTV) available on mortgage loans of £300,000 or more. The new rates are effective from 19 September. 

Santander has nudged up the cost of selected fixed rate mortgage deals for residential and buy-to-let borrowers by up to 0.1 percentage points, effective from tomorrow (19 September). New rates and deals, available through brokers, will be live online tomorrow. It’s the bank’s second rate increase this month, after it pushed up the cost of selected deals at the end of last week (see stories below). 

TSB has increased selected fixed rates by up to 0.15 percentage points. The rate rise affects deals for home purchase, including shared ownership rates, at high loan to value ratios, including 90% LTV and 95% LTV. 

Accord, the specialist lender owned by Yorkshire building society, has pushed up the cost of selected BTL tracker deals for new customers. Its two-year tracker deals (75% LTV) start from 4.57% (0.57% above Bank Rate) with a £995 fee. 

However, The Mortgage Works, the specialist buy-to-let lending arm of Nationwide building society, has cut selected fixed rates across its range by up to 0.15 percentage points. It is offering a two-year fixed rate for standard buy-to-let at 2.74% with a 3% fee (for purchase or remortgage) for borrowers with a minimum 35% deposit (65% LTV). It has a two-year fixed rate for limited company BTL at 3.87% also with a 3% fee (75% LTV). 

Co-operative Bank for Intermediaries, the lender owned by Coventry building society, has lowered selected residential and BTL rates, while also increasing the cost of selected residential purchase rates at lower LTVs. 

The Mortgage Lender has cut deals in its residential and BTL ranges by up to 0.25 percentage points. Its five-year fixed rates for standard buy-to-let borrowing start from 4.71% with a 3% fee (75% LTV). 

Gareth Lewis, deputy chief executive at specialist lender MT Finance, commented: “By holding rates, the Monetary Policy Committee is demonstrating its commitment to continued vigilance with regard to inflationary pressures while providing a sense of stability for businesses and investors.  

“For property investors, this decision may create a stronger demand for alternative financing solutions such as bridging loans. A measured approach is key, and we anticipate that a rate reduction is on the horizon as inflationary pressures continue to ease.” 

11 September 2025: Uncertainty Grows Over Further Rate Cuts 

Santander and HSBC have increased the cost of selected fixed rate mortgage deals, following other major lenders who have pushed up rates in recent weeks, writes Jo Thornhill. 

TSB and the Leeds and Principality building societies have also given notice to brokers that they are increasing selected fixed rates from tomorrow (12 September).

Rising swap rates, the interest rates at which banks lend to each other in the wholesale markets and which influence fixed rate mortgage pricing, have nudged up in recent weeks. Stubborn inflation also means a further interest rate cut by the Bank of England is looking increasingly unlikely in the short term. 

Santander has confirmed that rates on both residential and buy-to-let mortgage deals will rise from tomorrow (12 September). The lender will also increase the cost of selected product transfer rates for existing customers looking for a new deal. The new rates will be live and available from tomorrow morning. 

HSBC has increased selected fixed rate deals by up to 0.2 percentage points and is now offering two-year fixed rate deals for remortgage from 3.93% with a £999 fee (60% loan to value). The same deal is at 3.90% for HSBC Premier banking customers. Over five-years the lowest remortgage rates now start from 4.04% (4.01% for Premier customers) with a £999 fee (60% LTV). 

TSB is pushing up the cost of product transfer deals and additional borrowing rates for existing customers, although its two-year fixed rate for remortgage at 85% LTV has been cut by 0.05 percentage points to 4.29% with a £995 fee.

Principality building society is increasing selected deals by up to 0.15 percentage points. New rates will be unveiled tomorrow (12 September), and Leeds building society is raising the cost of selected deals. It has a two-year fixed rate for first-time buyers at 3.94% (up from 3.89%) with a £1,499 fee (65% LTV).

Nick Mendes, mortgage broker at John Charcol, commented: “HSBC’s repricing reflects the pressure lenders are under as swap rates have flattened out. Markets had already only priced in one more interest rate cut this year, and with swaps now broadly steady, we’re unlikely to see any major downward shifts in fixed pricing.  

“What’s more likely is some small reductions here and there, followed by repricing upwards again as lenders manage pipeline and service capacity. But hopefully this means a period of relative stability rather than another sustained round of increases.” 

Round up of other rate changes 

Aldermore, the specialist lender, has cut selected fixed rate deals by up to 0.3 percentage points. Two-year fixed rates for residential purchase or remortgage start from 5.29% with a £999 fee (65% LTV), for borrowers with a slightly impaired credit history. 

Gen H, a lender focused on first-time buyers, has reduced the cost of higher loan to value deals across its range by up to 0.1 percentage point. It’s offering a two-year purchase fixed rate at 5.49% with a £999 fee for borrowers with at least a 20% cash deposit (80% LTV). 

4 September: Bank of England Suggests Rate Reductions May Be Paused

Nationwide building society, Barclays Bank and TSB are among lenders who have nudged up the cost of fixed rate mortgage deals this week, writes Jo Thornhill.  

The hikes come amid mounting uncertainty around the prospect of further interest rate cuts, in light of inflation remaining stubbornly high in August at 3.8%.  

Addressing the Treasury Select Committee in parliament this week, Bank of England governor Andrew Bailey said there was now ‘more doubt’ about how soon or how quickly interest rates could fall. 

But despite the more subdued picture, other lenders have taken the opportunity to nudge their fixed rates downwards in a bid to acquire new business. 

Steve Humphrey, broker at The Mortgage Pod said: “We’ve seen a few lenders, including Barclays and TSB, make marginal rate increases on some deals this week. But I don’t feel this is anything to be concerned about. It’s more of a minor market adjustment. 

“After a spell where high-street lenders were pricing competitively, it’s not uncommon for them to slightly increase rates to manage the volume of new applications.”

And David Hollingworth at L&C Mortgages said: “The expectation of interest rates potentially remaining higher for longer than previously thought is feeding through to funding costs. And with such slim margins, in a competitive market, that will inevitably pass through to mortgage rates. These increases aren’t huge jumps so there’s no need for panic. But borrowers who were hoping to see a continued fall in rates may be in for a jolt.”

Weekly rate round-up 

Here’s the detail on this week’s rate movements. 

Nationwide building society has increased the cost of selected fixed rate deals by up to 0.2 percentage points. The lender’s new rates and deals, which include higher costs on its first-time buyer, home mover, remortgage, and product transfer rates, will be unveiled and live from tomorrow (5 September).

Virgin Money, the lending brand owned by Nationwide, is increasing selected residential and buy-to-let fixed rates by up to 0.22 percentage points from 5 September. It has a two- or five-year fixed rate deal for residential purchase, available through brokers, at 4.14% (up from 3.97%) with an £895 fee. Both deals are for borrowers with at least a 20% cash deposit (80% LTV).

Barclays has pushed up the cost of selected fixed rate deals for purchase and remortgage by up to 0.1 percentage points. The rate on its five-year Great Escape fixed rate for remortgage, which does not charge fees, has risen from 4.08% to 4.18% (60% loan to value).  The bank’s two-year fixed rate Premier deal for home purchase (for Premier bank customers) has gone up from 3.74% to 3.84% (60% LTV). This deal comes with a £899 fee. 

TSB has increased rates on selected residential and buy-to-let mortgage deals by as much as 0.25 percentage points. But selected product transfer deals, for existing borrowers looking for a new deal, have been reduced by up to the same amount.  

The bank is offering a three-year fixed rate for residential remortgage at 4.19% with a £995 fee (75% LTV), and a five-year fix for home movers at 4.59% with a £995 fee (90% LTV). 

Principality building society has increased selected fixed rates while lowering the cost of other deals in its range. Residential mortgage deals for borrowers with at least a 40% deposit or equity (at 60% LTV and 75% LTV), as well as selected buy-to-let rates and two- and five-year holiday let mortgages, have gone up by up to 0.11 percentage points.  

However, residential deals at higher LTVs, including shared ownership and joint borrower sole proprietor deals, have fallen in cost by up to 0.27 percentage points. 

Nottingham building society has raised the cost of selected residential fixed rate deals by up to 0.1 percentage points. It’s now offering two-year fixed rates for purchase or remortgage priced from 4.81% and five-year deals from 4.89%. 

Atom Bank, the specialist lender, has cut rates across its prime and near-prime mortgage deals by up to 0.1 percentage points. Two-year fixed rate deals for near-prime credit borrowers now start from 5.04%.

Newcastle building society has launched a 98% LTV mortgage deal aimed at first-time buyers with a relatively small deposit saved towards their home purchase. The mutual lender’s First Step deal is a fee-free five-year fixed rate at 5.25%. There are a number of eligibility criteria: borrowers must have at least a £5,000 deposit and the maximum mortgage size is £350,000. The deal is only available initially through three brokers: L&C Mortgages, Connells Group, and Mortgage Advice Bureau.

14 August 2025: Competition Intensifies Across Market

Lenders are continuing to reduce the cost of fixed-rate mortgage deals for both new and existing customers following the Bank of England’s Bank Rate reduction from 4.25% to 4% on 7 August, writes Jo Thornhill. 

Many lenders had already priced-in a Bank Rate cut, but a number of banks and building societies have stoked competition by lowering rates further. 

Barclays has cut fixed rates for new and existing borrowers by up to 0.4 percentage points. The bank has a two-year deal for new customers purchasing a house with at least a 15% deposit (85% LTV) at 4.22% with a £899 fee. It has a remortgage deal at 4.75% with a £999 fee (also 85% LTV).  

For existing customers looking for a new rate (product transfer), Barclays has a two-year fixed rate at 4.47% with a £999 fee (85% LTV) and an equivalent five-year deal at 4.31%. 

Halifax is increasing the cost of selected fixed rates by 0.05 percentage points, while cutting two-year deals at 90% LTV by up to 0.17 percentage points. The lender’s new rates and deals, available through brokers only, will be unveiled and live from 15 August.

The Mortgage Works, the specialist lending brand owned by Nationwide building society, has cut selected limited company BTL deals by up to 0.25 percentage points, effective from 15 August. It has a fee-free two-year fixed rate deal at 5.54% (75% LTV) and an equivalent five-year deal at 5.19%.

TSB has cut selected three- and five-year residential fixed rates by up to 0.1 percentage points. The bank offers a three-year fixed deal for purchase at 3.94% with a £995 fee (60% LTV). It has a five-year deal for purchase at 4.79% with a £995 fee (95% LTV). 

Accord, the specialist lending arm of Yorkshire building society, has cut selected residential deals, available through brokers, by up to 0.4 percentage points, and buy-to-let fixed rates by up to 0.06 percentage points. It has a three-year fixed rate for residential purchase at 4.49% with a £495 fee (90% loan to value).

Among its BTL deals Accord is offering a five-year purchase deal at 4.06% with a £1,995 fee (60% LTV) and a five-year remortgage deal at 4.16% with a £995 fee (60% LTV). A two-year fixed rate remortgage deal is available at 4.36% with a £995 fee (75% LTV). 

Coventry building society has cut selected fixed-rate residential deals by up to 0.14 percentage points and selected buy-to-let fixed rates by up to 0.38 percentage points. It has a two-year fixed rate for residential purchase at 3.8% (65% LTV) with a £999 fee. It has a five-year fixed-rate BTL purchase deal at 4.31% with a £1,999 fee (75% LTV). 

The average two-year fixed-rate residential mortgage deal is now lower than the average five-year fix, at 4.99% and 5.01% respectively, according to financial data company Moneyfacts. It is the first time two-year deals have dipped below five-year rates since September 2022, just before mortgage rates climbed following the Liz Truss mini-Budget.  

Nick Mendes at broker John Charcol says one of the main drivers for this shift has been the lowering in cost of two-year fixed rates at higher loan-to-value ratios (95% and 90% LTV): “Two-year deals have caught up with and in some cases are now beating the rates on five-year fixes. There has been a clear shift in borrower preferences, with many now choosing shorter-term fixed rates over the five-year deals that had long been the default. 

“With mortgage rates widely expected to continue trending downwards, many borrowers see shorter-term fixes as a way to lock in a lower rate while keeping the option to benefit from future rate cuts sooner. That said, the choice isn’t purely about the interest rate. A  two-year fix means you’ll need to remortgage sooner, bringing the risk that rates could be higher when the deal ends, along with more remotgage costs.  

“A five-year fix offers more stability but is often more expensive to exit early. The right decision still comes down to each borrower’s circumstances and appetite for risk.” 

The total number of residential mortgage products (fixed and variable) has fallen this month, according to Moneyfacts, from 6,908 in July to 6,842 in August. But the number is up year on year. The total available deals in August 2024 was 6,657. 

The next Bank Rate decision will be on 16 September. 

7 August 2025: Good News For Borrowers As Competition Between Lenders Intensifies

Today’s cut to interest rates by the Bank of England’s influential Monetary Policy Committee (MPC) is expected to unlock further reductions to the cost of fixed rate mortgages, writes Jo Thornhill. 

The benchmark Bank Rate was cut today (7 August) from 4.25% to 4%. Most major lenders had already ‘priced in’ the cut by reducing fixed rates in recent weeks (see stories below). However, strong competition among lenders for new business means some rates and deals could still be nudged down even further.

Among this week’s changes are:

HSBC lowering the cost of two- and five-year fixed rate mortgages, for home purchase and remortgage, on deals up to 75% loan to value (for those with a 25% deposit or equity in their property). A number of fixed rates at 80% LTV and 85% LTV have also been cut. The bank is offering a two-year fixed rate for purchase, through brokers, at 3.78% with a £999 fee (60% LTV) and equivalent deals for remortgage from 3.83%.

TSB cutting selected fixed rates by up to 0.2 percentage points. Its two-year remortgage fixed rates, through brokers, now start from 3.89% with a £1,495 fee (60% LTV). It has a five-year remortgage deal at 4.04% with a £999 fee (also 60% LTV). 

Yorkshire building society has cut selected fixed rates, predominantly deals at higher loan to value ratios, by up to 0.34 percentage points. It has a two-year fixed rate for remortgage at 3.93% with a £995 fee (75% LTV) and a fee-free five-year remortgage deal at 4.36% (85% LTV).

Virgin Money cutting selected purchase and remortgage rates as well as product transfer deals for existing customers, by up to 0.15 percentage points. It has a two-year fixed rate for home movers, available through brokers, at 3.97% with an £895 fee for buyers with at least a 20% cash deposit (80% LTV).

Coventry building society cutting selected fixed rates by up to 0.19 percentage points for new and existing customers. For existing borrowers looking for a product transfer fixed rate, or additional borrowing, it has a two-year fixed rate at 3.88% with a £999 fee (65% LTV).

Gen H, the specialist lender focusing on the first-time buyer market, has bucked the trend for falling rates by increasing some of its fixed rates by up to 0.25 percentage points, while cutting the cost of other deals.

Nick Mendes at broker John Charcol said: “Fixed rates have been edging lower in recent weeks, helped by a price war among lenders. Many banks are off their annual targets, particularly on the purchase side, so they’re sharpening rates to compete for remortgage business instead. That’s why we’ve started to see a handful of five- and two-year fixed rates priced below 3.8%.

“Today’s quarter-point cut to Bank Rate won’t move the mortgage market dramatically, but it does keep the downward momentum going. Lenders are likely to trim rates further to stay competitive, especially with some already pricing in another cut before the end of the year.

“The Bank of England’s decision may give lenders more confidence to adjust pricing downwards, but how far lenders lower fixed rates will depend on how stable the data looks (inflation and jobs data) in the coming months.”

1 August 2025: ‘Cautious Optimism’ Leads To Further Cuts

Major lenders including Halifax, HSBC, Nationwide building society, Santander, and TSB have cut their fixed-rate mortgage pricing this week as the market awaits the Bank of England Bank Rate decision on Thursday next week (7 August), writes Jo Thornhill.

Experts are predicting the Bank’s monetary policy committee (MPC), which determines the level of the influential Bank Rate, could cut it from its current 4.25% to 4%. 

However, the outlook is slightly less certain following higher-than-expected inflation figures of 3.6% for the 12 months to June. The Bank uses high interest rates to reduce demand across the economy and exert downwards pressure on prices – its inflation target is 2%.

Halifax has cut selected fixed rate deals for residential remortgage, available through brokers, by up to 0.22 percentage points. Two-year fixed rate deals start from 3.81% with a £999 fee (60% LTV), while five-year equivalent deals start from 4.01%.

Nationwide has reduced selected fixed-rate deals for new and existing customers by up to 0.21 percentage points. It is offering a two-year fixed rate for home movers at 3.74% for buyers with at least a 40% deposit (60% LTV), where the mortgage loan is at least £300,000. There is a £1,499 fee.

Among its remortgage deals, Nationwide has a two-year fixed rate at 3.99% with a £999 fee for homeowners who have at least 25% equity in their property (75% LTV).

Virgin Money, part of Nationwide, has increased the cost of its fee-free two- and five-year fixed rates for purchase for buyers with a 5% cash deposit (95% LTV). The two-year fee saver rate is now at 5.04%, while the five-year rate rises to 4.89%.

HSBC has announced cuts to selected residential fixed rates from Tuesday next week (5 August). The new rates and deals, available through brokers, will be unveiled online next week.

Santander has cut selected fixed rates for new borrowers, while increasing fixed rates on some home mover and first-time buyer deals. The lender’s two-year Homemover deal (which applies to new build properties) has been cut by 0.06 percentage points to start from 3.73% with a £999 fee (60% LTV).

However, the bank has increased some Homemover deals in the range 85% LTV to 95% LTV by up to 0.11 percentage points so they now start from 4.04% with a £999 fee (85% LTV). In addition, a number of its first-time buyer rates have increased by up to 0.12 percentage points. Santander is offering a two-year FTB fixed rate at 4.09% with a £999 fee (85% LTV).

TSB has reduced selected fixed rates by up to 0.3 percentage points for existing residential and buy-to-let customers looking for a new deal, including product transfer and additional borrowing rates. The lender’s two-year fixed product transfer rates start from 3.74% with a £1,495 fee (60% LTV).

The Mortgage Works, the buy-to-let lender owned by Nationwide, has cut selected fixed rates by up to 0.25 percentage points. It’s offering a two-year fixed rate for standard BTL remortgage priced at 4.04% with a £1,495 fee (65% LTV), and a two-year fixed rate for limited company BTL purchase, remortgage, or further advance, at 3.99% with a 3% fee (75% LTV) with a free valuation.

Katherine Stagg at broker Stagg Mortgages said: “The market continues to show signs of cautious optimism. Despite the Bank of England holding interest rates at 4.25% in June, lenders have been trimming fixed rates across the board, with plenty of deals now below 4% for some borrowers. This reflects intense competition and anticipation of further cuts to Bank Rate.

“Markets are pricing in a strong likelihood of a 0.25% cut next week, which would bring Bank Rate down to 4%. However, the recent uptick in inflation may complicate that decision.”

The Bank of England’s Money and Credit report, published this week, shows there was a small uplift in the number of new mortgages approved for home purchase, up by 900 to 64,200 in June. 

Remortgage activity has also increased, with total approvals in June up 200 to 41,800. This is the highest level for mortgages since October 2022, when the total was 50,000. This data records remortgages to new lenders, not product transfers with the same lender.

The average interest rates on new mortgages fell in June, for the fourth consecutive month, from 4.47% in May to 4.34%.

The next Bank of England interest rate decision is on 7 August.

17 July 2025: Government Makes Guarantee Scheme Permanent

Lenders are continuing to nudge down fixed mortgage rates and relax their loan-to-income (LTI) ratios, with the government confirming the continuation of the mortgage guarantee scheme, which helps first-time buyers get a mortgage with a 5% deposit, writes Jo Thornhill.

Halifax, the UK’s biggest lender, has cut fixed-rate deals for first-time buyers and home movers, available through brokers, by up to 0.1 percentage points. Its two-year fixed rate for purchase for buyers with a 15% deposit (85% loan to value) is at 4.05% with a £999 fee.

Barclays is cutting selected fixed-rate deals for residential purchase and remortgage, effective tomorrow (18 July). It will offer a market-leading two-year fixed rate for home purchase at 3.76% with an £899 fee (60% loan to value), while its two-year remortgage fixed rates fall to 3.79% with a £999 fee (also 60% LTV). Barclays Premier banking customers get even lower rates at 3.75% for the two-year purchase deal, and from 3.78% for the two-year remortgage rate. The bank has also lowered product transfer fixed rates for existing customers.

Santander has reduced selected residential and buy-to-let fixed rates for new customers by up to 0.23 percentage points. Selected deals for existing customers (product transfer rates) have been cut by up to 0.16 percentage points. The bank has a two-year fixed rate for home movers at 3.94% with a £999 fee (75% LTV).

Accord, the specialist lending arm of Yorkshire building society, has cut selected fixed rates for buy-to-let borrowers by up to 0.1 percentage points. Its five-year fixed rate for BTL purchase is now at 4.12% with a £1,995 fee (60% LTV). It has a two-year fixed rate for BTL remortgage at 4.42% with a £995 fee (75% LTV).

Monmouthshire building society has reduced selected fixed rates by up to 0.16 percentage points. It has a two-year fixed rate deal for residential remortgage at 3.99% with a £1,249 fee (75% LTV). The five-year equivalent deal is priced at 4.05%.

Paragon Bank, the specialist lender, has cut selected buy-to-let fixed rates by up to 0.11 percentage points. Two-year fixed rates for standard BTL purchase or remortgage start from 4.24% with a 3% fee.

Katherine Stagg at broker Stagg Mortgages said: “Fixed rates seem to be settling, at least for now. The market consensus is leaning heavily toward a quarter-point cut to the Bank Rate in August, which would take the benchmark rate from 4.25% to 4.00%. The economy contracted again in May, and wage growth is cooling, which strengthens the case for easing.

“The Bank’s Governor Andrew Bailey has reiterated that the path for rates is “gradually downward,” though he’s still cautious given inflation remains above target at 3.6%.”

A number of lenders, including Nationwide building society and Yorkshire building society, have announced changes to their LTI limits, which should mean they can help more first-time buyers access funding for a home purchase. It follows similar moves by most major lenders in recent weeks following new guidelines from the Financial Conduct Authority that say lenders can extend their LTI limits.

Nationwide, for example, says it will now accept applications from first-time buyers with a £30,000 annual gross income (previously the minimum was £35,000) under its Helping Hand mortgage scheme, which can lend up to six times income, subject to eligibility. For joint FTB applicants, the minimum annual household income will fall to £50,000 (from £55,000).

The Mortgage Guarantee Scheme, which supports lenders to offer 95% loan-to-value mortgages to their customers, has been made a permanent fixture of the mortgage market after a government announcement this week.

The scheme, which helps first-time buyers onto the property ladder, ended in June. But the Chancellor, Rachel Reeves, confirmed in her annual Mansion House speech to City leaders on 15 July that it will continue indefinitely.

10 July 2025: Halifax, Nationwide, NatWest, HSBC Chop Rates

Lenders are slashing their fixed rates to offer best-buy deals to new mortgage customers as markets price-in further interest rate cuts by the Bank of England, writes Jo Thornhill.

So-called ‘swap’ rates used for inter-bank lending, which influence fixed mortgage rates, have dropped by around 0.2 percentage points over the past month.

Andrew Bailey, governor of the Bank of England, has also suggested the path for interest rates is ‘gradually downwards’, adding to lender confidence in cutting rates.

Nick Mendes at broker John Charcol said: “With multiple big names making successive reductions and competition intensifying by the day, the battle for best-rate positioning is well and truly underway. It would be no surprise to see further movement from other major lenders in the coming days.”

Halifax is reducing selected fixed rates for purchase and remortgage by up to 0.15 percentage points. It has a two-year remortgage fixed rate at 3.74%, albeit with a high £1,999 fee for borrowers with at least 40% equity in their home (60% loan to value). The minimum loan amount is £250,000. The equivalent five-year rate is at 3.92%. The bank has a two-year purchase deal at 4.02% with a lower £999 fee (also 60% LTV).

Nationwide building society is cutting selected fixed-rate deals by up to 0.2 percentage points for new and existing customers. It has a two-year purchase fixed rate for first-time buyers at 4.13% with a £1,495 fee, for borrowers with at least a 15% cash deposit (85% LTV) who are borrowing £300,000 or more. It has a five-year fixed-rate remortgage deal at 4.24% with a £999 fee (85% LTV).

NatWest is lowering selected fixed-rate deals including its fee-free purchase rates. It has a fee-free two-year fixed-rate deal for purchase at 4.09% (60% LTV). The bank is offering the lowest purchase deals for borrowers with at least a 40% deposit (60% LTV) at 3.81% with a £1,495 fee.

Santander is cutting selected remortgage rates by up to 0.16 percentage points and offering a two-year fixed rate at 3.84% with a £999 fee (60% LTV), the five-year equivalent deal starts from 3.87%.

HSBC has made its third rate cut in two weeks, lowering the cost of fixed rates for purchase and remortgage by 0.16 percentage points, effective from tomorrow (11 July). The new rates, available through brokers, will be live online tomorrow.

Barclays has made two reductions to a broad range of its fixed rates this week. The latest rates, effective tomorrow (11 July), include a two-year fixed rate for remortgage at 3.84% with a £999 fee (60% LTV).

Virgin Money, the lending brand owned by Nationwide, has lowered two and five-year fixed-rate remortgage rates, available through brokers, by up to 0.19 percentage points, and selected purchase deals by up to 0.1 percentage points. Two-year remortgage fixed rates start from 4.09% with a £995 fee (60% LTV).

Other lenders, including Skipton building society, Darlington building society and Accord Mortgages, part of Yorkshire building society, have also lowered the cost of selected fixed-rate deals.

The Bank of England is looking to relax the loan-to-income rules (LTI) laid down for lenders, which could open the doors to wider lending for first-time buyers.

Under new guidelines, lenders could offer a higher number of LTI mortgages (this is considered to be 4.5 times the borrower’s annual income or more) as a proportion of their total mortgage book. The Bank believes the changes could help an extra 36,000 first-time buyers per year on to the housing ladder.

The next Bank of England interest rate decision is on 7 August.

2 July 2025: Nationwide Offers Market-Leading 3.81% Fix

Nationwide, Halifax, Santander, HSBC and Barclays are among the big-name lenders cutting mortgage rates in a developing price war, writes Jo Thornhill.

Mutual lender Nationwide has cut selected residential fixed rates by up to 0.2 percentage points to offer a two-year fixed rate for purchase at a market-leading 3.81%. 

This rate is only available to those borrowing £300,000 with a minimum 40% cash deposit (maximum 60% loan-to-value ratio). There is a fee of £1,499.

Nationwide has also lowered fixed rates for first-time buyers, home movers and remortgage customers. Its two-year fixed-rate deal for remortgage starts from 3.89%, also for borrowers with a £300,000 mortgage or higher and at least 40% equity in their home (60% LTV). Again, the fee is £1,499. 

Among its other new rates is a three-year fix for remortgage at 4.19% with a £999 fee and a fee-free five-year fix at 4.22% (both deals available at 75% LTV).

Halifax has shaved some residential fixed rates, available through brokers, by up to 0.1 percentage point, including its first-time buyer and home mover ranges. 

It has a two-year first-time buyer fixed rate at 4.12% for borrowers with a 20% cash deposit (80% LTV) with a £999 fee. The bank has an 18-month fix for remortgage at 3.87% with a £1,499 fee (60% LTV). For those willing to pay a high product fee, it has a market-leading remortgage deal at 3.84% for a two-year fix with a £1,999 fee (60% LTV).

Santander, which has acquired TSB from Banco Sabadell (making it the fourth-largest UK mortgage lender), has cut selected fixed rate deals for residential and buy-to-let borrowing by up to 0.16 percentage points. 

It has a three-year fixed rate for first-time buyers with a 10% cash deposit (90% LTV) at 4.75% with a £999 fee. For landlord borrowers, the bank is offering two-year purchase rates from 3.99% with a £1,749 fee (60% LTV).

HSBC has cut fixed rates for existing customers looking for a new deal (product transfer) or wanting to borrow more, remortgage fixed rates, and selected buy-to-let rates. 

Two-year remortgage fixed rates, available through brokers, now start from 3.92% (60% LTV) with a £999 fee, while equivalent five-year rates now start from 3.99%. HSBC Premier banking customers can get preferential remortgage rates starting from 3.89% (two-year) or 3.96% (five-year).

Barclays has cut a range of residential purchase and remortgage rates. It is offering a five-year fixed-rate deal for remortgage at 3.93% with a £999 fee (60% LTV), which is cut to 3.92% for Premier banking customers. 

Its Great Escape remortgage two-year fixed-rate product with no fee is now at 4.15% (60% LTV), and it is offering a two-year purchase rate at 4.14% for buyers with a 15% cash deposit (85% LTV) with an £899 fee.

Virgin Money, now owned by Nationwide, has reduced a number of broker-exclusive residential purchase rates by 0.05 percentage points and selected buy-to-let rates by up to 0.08 percentage points. It has a five-year fixed rate for residential purchase at 4.19% with a £895 fee (at 85% LTV).

TSB has cut its range of fixed-rate deals for existing customers (product transfer and additional borrowing rates) by up to 0.2 percentage points. It has a two-year fixed rate for existing customers at 3.84% with a £1,495 fee (60% LTV).

Principality building society has lowered selected fixed-rate deals by up to 0.51 percentage points. The mutual lender’s two-year fixed rate for purchase or remortgage at 80% LTV received the full 0.51 percentage point cut and is now at 4.25% with a £895 fee.

The Mortgage Works, the specialist lending arm of Nationwide, has also cut fixed rates on a range of its buy-to-let deals. Its standard landlord deals include a two-year remortgage fixed rate at 2.99% with a 3% fee (65% LTV) and a five-year remortgage fixed rate at 3.82%, also with a 3% fee (75 % LTV).

Nick Mendes at broker John Charcol said: “There has been a flurry of rate reductions as lenders battle it out ahead of the summer holidays. The direction of travel for rates over the past few weeks has been clear and we’ve seen a series of cuts this week. 

“A cut to the Bank of England Bank Rate, when it next makes a decision on interest rates in August, is now looking more likely.”

David Hollingworth, at L&C Mortgages, said: “As soon as you get a few lenders making improvements it is almost guaranteed that others will follow suit to make sure that they can keep up. 

“Whether the Bank Rate cut comes as soon as next month remains up for debate but it is a possibility and, either way, borrowers can expect to see it drop further this year.  That will already be priced into fixed-rate deals to a large degree, so although the current signs are for more competitive pricing, it may continue to be lenders nibbling away at rates here and there.”

The next interest rate decision by the Bank of England is on 7 August. Bank Rate is currently 4.25%.

27 June 2025: Market’s Rate Cut Expectations Push Down Prices

Lenders are nudging down the cost of fixed-rate mortgages despite the Bank of England keeping interest rates on hold last week.

While the benchmark Bank Rate was kept at 4.25%, swap rates (interbank market rates which influence mortgage pricing) have edged down in recent days, suggesting markets expect rate cuts in the coming months.

The next Bank of England decision on Bank Rate will be made on 7 August.

Halifax, part of Lloyds Banking Group, has reduced the rate on its two-year residential purchase deal with a £999 fee from 4.01% to 3.94% (60% LTV). The lender has also cut selected remortgage rates including its 18-month fixed rate deal at 90% LTV, which drops from 4.92% to 4.74%. The deal has a £1,499 fee. Halifax’s three-year remortgage deal at 85% LTV falls from 4.55% to 4.39% with a £999 fee.

Barclays has lowered selected fixed-rate deals to offer a market-leading two-year fixed rate for purchase at 3.89% with an £899 fee (at 60% loan to value). For customers with a Barclays Premier bank account, the rate is 3.88%. Its two-year remortgage rates now start from 3.91% (60% LTV) with a £999 fee.

TSB has reduced the cost of selected residential deals, including first-time buyer rates and deals for shared ownership and shared equity home purchase. It is offering a two-year fixed rate at 4.64% with a £995 fee (at 90% LTV).

Virgin Money has cut selected fixed-rate residential and buy-to-let deals available through brokers. It has a fee-free five-year residential purchase fixed rate at 4.25% for borrowers with at least a 25% cash deposit (75% LTV).

Coventry building society has cut selected residential and BTL deals across its range. It has a two-year fixed rate for residential purchase at 3.99% with a £999 fee (60% LTV) and a five-year equivalent deal at 4.14%.

Skipton building society has lowered the cost of selected fixed-rate deals and brought back three-year residential purchase fixed rates to its range. It is offering two-year fixed rates for remortgage from 4.2% with a £1,495 fee (60% LTV).

Accord Mortgages, part of Yorkshire building society, has cut selected fixed rates. Its two-, three- and five-year fixed-rate residential mortgage deals, available through brokers, have all been cut. Two-year fixed rates for purchase now start from 4.07% with a £1,495 fee (75% LTV). The five-year equivalent deal is 4.19%.

Gen H, the specialist lender targeting the first-time buyer market, has launched an interest-only mortgage aimed at professional and self-employed buyers. The lender will only lend on interest-only terms where the borrower’s household income is at least £50,000, and then only up to a maximum of 80% LTV.

BM Solutions, part of Lloyds Banking Group, has cut selected buy-to-let rates. It comes as Moneyfacts reported the number of BTL mortgage deals has reached a record high at more than 4,000 fixed and variable rate products. BM Solutions is offering a five-year BTL remortgage fixed rate at 4.06% with a £1,499 fee (60% LTV).

Nick Mendes at broker John Charcol said: “Two- and five-year swap rates have fallen noticeably over the past month, which explains why lenders continue to make rate reductions.

“Lenders are competing hard on price, and we’re also seeing changes in their appetite and criteria as they look to strengthen their offerings in what’s still a competitive market.”

The Financial Conduct Authority (FCA) is consulting on the mortgage market as part of a review of mortgage products, lending, and making home ownership more accessible. This open online discussion will close on 19 September 2025.

18 June 2025: Bank of England Expected To Hold Rates At 4.25%

Lenders continue to nudge down the cost of fixed rate mortgages as competition for new business heats up, writes Jo Thornhill.

But experts are predicting the Bank of England will keep rates on hold when the Monetary Policy Committee (MPC) meets tomorrow (19 June), as figures out today showed inflation remains stubbornly high – down only a notch from 3.5% in April to 3.4% in the year to May.

“It would be a major surprise if interest rates were not held by the Bank of England,” said David Hollingworth at broker L&C Mortgages. “We are still seeing some mortgage rate reductions, but they are fewer in number this week, which is a signal that the market may have steadied, giving lenders a clearer idea of where they can price fixed rates.”

Santander has cut its two- and five-year fixed rates for home purchase for borrowers with a 10% or 15% deposit (85% and 90% loan to value). It is offering a two-year fixed home mover rate at 90% LTV priced at 4.4% with a £999 fee and £250 cashback on completion.

Virgin Money and Clydesdale Bank, both now part of the Nationwide building society group, have cut selected fixed rates across their range, available through brokers. Virgin is offering a five-year fixed rate for remortgage at 4.14% with a £995 fee (75% LTV).

Gen H, the lender specialising in first-time buyers, has reduced its fixed rates by up to 0.5 percentage points. It is offering a five-year fix priced at 5.69% with a £1,499 fee for borrowers with a 15% cash deposit. 

However, borrowers must take Gen H’s homebuyer bundle, which means using its conveyancing service for their home purchase, to get this rate.

Accord Mortgages, the specialist lending arm of Yorkshire building society, has cut selected fixed rate buy-to-let loans by up to 0.08 percentage points, effective from 19 June. It has a three-year fix for BTL remortgage at 4.32% with a £995 fee (60% LTV).

Other specialist buy-to-let lenders including LendInvest, Together, and Keystone Property Finance, have also all reduced selected rates and deals, available through brokers, including fixed and variable rates.

Specialist lender Hodge has cut fixed rates on its holiday let mortgage range, available through brokers, for new and existing customers.

Katherine Stagg of independent broker Stagg Mortgages, said: “Swap rate, [interbank rates which influence fixed rate mortgage pricing] have been relatively steady this week, which means lenders are adjusting rates for strategic reasons, fine tuning their pricing to entice business, for example, rather than as a reaction to major shifts in funding costs.”

13 June 2025: Middle East Conflict Dashes Rate Cut Hopes

NatWest is cutting selected fixed-rate borrowing costs for new and existing customers, but it has been a mixed week for the mortgage market, with some lenders trimming rates while others push up their prices, writes Jo Thornhill.

Swap rates (the inter-bank rates that help determine fixed-rate pricing) have risen slightly in recent weeks. While they have fallen marginally over the past few days, the general trajectory since mid-May has been upwards. 

Nick Mendes at broker John Charcol says: “The recent rise in swap rates, combined with ongoing geopolitical jitters and uncertainty around US trade policy, is keeping lenders cautious. But it’s a fragmented landscape for fixed rates. 

“While some lenders have the margin flexibility to ride out market nervousness, others are tweaking pricing just to protect business volumes and manage service levels. If anything, it looks as if we could be in for a period of relative stability with fixed rates.”

Mendes believes the Bank of England will leave the Bank Rate unchanged at 4.25% when it next makes a decision on rates next Thursday, 19 June.

The Bank is likely to see the surge in crude oil prices, triggered by renewed conflict in the Middle East, as increasing inflationary pressures. It maintains or increases the Bank Rate as a way to keep a lid on rising prices by reducing borrowing and taking demand out of the economy.

NatWest has nudged down the rates on selected deals, available through brokers, including two and five-year remortgage rates. It is offering a two-year fixed rate for remortgage at 3.92% with a £1,495 fee, and a five-year equivalent deal at 3.95% (both deals require 40% equity in the property, 60% LTV). 

The bank’s product transfer rates, available to existing NatWest borrowers coming to the end of fixed-rate deals and looking for a new rate, have also been cut. Customers can view the new rates in the broker portal section of the NatWest website.

Halifax, part of Lloyds Banking Group, has cut selected two, three and five-year fixed rates for home purchase and movers by up to 0.1 percentage points, effective from Monday (16 June). The new rates and deals, available through brokers, will be unveiled and live online on the same date. The bank’s current two-year fixed rates for purchase start at 4.0% with a £999 fee (at 60% LTV).

BM Solutions, the specialist lender also owned by Lloyds Banking Group, has cut fixed rates across its buy-to-let product range by up to 0.16 percentage points, also available through brokers and live online from Monday (16 June).

TSB has cut two- and five-year first-time buyer deals at 75% and 85% LTV by up to 0.15 percentage points, but it has increased five-year fixed rates by 0.1 percentage point for first-time buyers at 90% and 95% LTV. 

The bank has also lowered selected buy-to-let fixed rates, as well as cutting the cost of a range of its product transfer deals for existing customers.

Principality building society has cut selected residential fixed rates by up to 0.17 percentage points and selected buy-to-let rates by up to 0.1 percentage points. It has a two-year fixed rate for purchase at 90% LTV at 5.11% with a £1,395 fee.

Suffolk building society has reduced selected fixed rates by up to 0.16 percentage points. It is offering a five-year fixed rate for purchase and remortgage at 4.95% (80% LTV). The two-year equivalent deal is now priced at 4.85%. Both deals have a £999 fee.

Market Harborough building society, which specialises in non-standard mortgage lending, has lowered rates by up to 0.2 percentage points across its fixed-rate range for residential borrowing. Rates and deals are available on application.

Atom Bank, the specialist lender, has cut fixed rates on its ‘near prime’ fixed rates (for borrowers with slightly impaired credit histories) by up to 0.1 percentage points. It has a fee-free two-year fixed rate for remortgage at 5.24% at 85% LTV.

Which lenders are increasing fixed rates?

Barclays has nudged up the cost of a small number of its two- and three-year fixed-rate deals for residential purchase and remortgage. It has a three-year fixed rate for remortgage at 3.98% with a £999 fee (60% LTV).

HSBC has increased the cost of selected fixed rates for existing customers (product transfer deals) by up to 0.17 percentage points.

Skipton building society has increased fixed rates across a range of its residential purchase and remortgage deals, including its 100% LTV five-year fixed-rate mortgage deal (Track Record) for first-time buyers). The fee-free Track Record rate rises from 5.29% to 5.49% with no cashback, while the deal with £1,000 cashback rises from 5.39% to 5.59%. New rates and deals are effective from Monday (16 June).

Lending to first-time buyers was at its highest share of the market since 2007 in the first three months of this year, according to the Bank of England’s Mortgage Lenders and Administrators report. Lending to this category stood at 29.6% of the market, up from 27.7% in Q1 2024. 

Lending at higher loan-to-value ratios also increased to its highest level in 17 years in Q1 2025, according to the Bank. Mortgages at 90% loan-to-value ratios made up 6.7% of all mortgages in the first three months of the year, a rise from 6.3% in the previous quarter.

It comes as bosses at three of the country’s leading mutual lenders – Nationwide, Skipton and Yorkshire building societies – wrote to the House of Commons Treasury Committee to ask for rules to be changed to allow them to lend to more first-time buyers.

Under current regulations, lenders can only extend up to 15% of their total new residential mortgage lending to borrowers where the loan-to-income ratio is 4.5 times salary or higher (which includes most first-time buyers). The mutual societies are pushing for this cap to be lifted to 20% of their total new lending.

6 June 2025: Mixed Picture As Outlook Remains Uncertain

Nationwide building society has cut the cost of selected fixed rates for new borrowers by up to 0.12 percentage points with its lowest deal for home purchase now at 3.9%, writes Jo Thornhill.

However, many lenders have also nudged up the cost of borrowing this week as the outlook on rates remains uncertain.

Nick Mendes, a mortgage broker at John Charcol, said: “Swap rates, which underpin the pricing of fixed-rate mortgages, have risen noticeably in recent days and many lenders have started to respond by increasing rates. It reflects the growing concern over persistent inflation and the likelihood of a slower pace of monetary easing.”

After lowering the cost of a range of its two-, three- and five-year fixed rates Nationwide is offering a two-year fixed rate for home purchase for buyers with a 40% deposit (60% loan to value) at 3.9% with a £1,499 fee. The equivalent deal for borrowers with a 25% deposit (75% LTV) is now priced at 4.04%. The lender’s two-year fixed rates for remortgage start from 3.92% with a £1,499 fee at 60% LTV.

West Bromwich building society has cut selected two- and five-year fixed rates at 90% loan to value by up to 0.18 percentage points. Its two-year deal for purchase and remortgage is 4.69% with a £999 fee, or at 4.99% with no fee. Five-year fixed rates are now at 4.94% with a £999 fee, or at 5.06% with no fee.

Halifax however has increased the cost of selected remortgage fixed rates by up to 0.16 percentage points, while a range of its product transfer deals for existing customers have increased by up to 0.15 percentage points. The bank’s two-year fixed rate for remortgage now starts at 4.02% with a £999 fee.

Co-operative Bank for Intermediaries (now owned by Coventry building society) has pushed up selected fixed rate deals for new and existing customers by up to 0.27 percentage points. The lender has a two-year fixed rate for remortgage at 3.97% with a £999 fee (60% LTV). The equivalent five-year rate is at 4.25% with the same fee.

Clydesdale Bank, the lending brand owned by Nationwide building society, has also increased its fixed rates available through brokers for new and existing customers by up to 0.25 percentage points. It is offering two-year deals for purchase or remortgage from 4.3% (65% LTV) with a £1,999 fee.

Yorkshire building society and Accord Mortgages, Yorkshire’s specialist lending arm, have increased their maximum loan amounts in some scenarios by up to £1.6 million. 

For customers borrowing more than 75% LTV and up to 85% LTV, for example, the total maximum loan amount is now £2.6 million, up from a maximum of £2 million on non-new build property and up from £1 million for new builds. 

The maximum loan amount for borrowing below 75% LTV remains at £5 million. Both lenders will also now lend up to 95% loan to value for new build properties, extending the options for first-time buyers.

22 May 2025: Rising Inflation Puts Dampener On Rate Reductions

Halifax, the UK’s biggest mortgage lender, has increased the cost of residential purchase and remortgage deals by up to 0.14 percentage points, effective from tomorrow (23 May), writes Jo Thornhill.

The move bucks the trend of recent rate cuts across the market, as lenders reacted to the Bank of England’s reduction in the Bank Rate on 8 May. The benchmark interest rate was cut from 4.5% to 4.25%.

But other lenders, including First Direct and Yorkshire building society, have continued to shave their fixed rates this week.

Halifax had been among the market leaders for remortgages rates, offering a five-year fixed rate at 3.88% with a £999 fee. This rate will increase from tomorrow. 

Its first-time buyer and home mover rates are also set to rise by up to 0.1 percentage points. Halifax’s two-year purchase rates currently start from 3.87% with a £999 fee.

Halifax’s product transfer deals, for existing customers looking for a new fixed rate, will also rise by up to 0.14 percentage points. This is for deals for borrowers with at least 25% equity in their home (75% and 60% LTV), which tend to have the lowest rates.

Yorkshire building society has cut rates across its range at higher loan-to-value ratios, including cuts of up to 0.44 percentage points for deals at 95% LTV. Its two-year fixed rate for purchase is 4.84% with a £1,495 fee (95% LTV).

The lender’s innovative 5K deposit mortgage, which enables first-time buyers to buy a property worth up to £500,000 with a deposit of just £5,000, has had a rate cut of 0.21 percentage points, taking the fee-free five-year fix to 5.48%.

First Direct has cut two-, three- and five-year fixed rates across its range by up to 0.44 percentage points. 

Its lowest rate, available direct and not through brokers, at 3.84% with a £490 fee, is now available on two- and five-year fixed rates for home purchase or remortgage for borrowers with at least a 40% deposit or equity in their home.

Among other changes, Principality building society has increased selected two- and five-year fixed rates by up to 0.12 percentage points. The mutual is offering a two-year fix for remortgage at 3.86%, available through brokers, with a £1,499 fee (65% LTV).

Suffolk building society has cut selected two-year fixed rates for purchase and remortgage, as well as its expat residential mortgage range, by up to 0.24 percentage points. The mutual has a two-year fixed rate for standard residential purchase or remortgage at 4.85% (80% LTV) with a £999 fee. The equivalent deal at 90% LTV has a rate of 5.15%.

Steve Humphrey at broker The Mortgage Pod said: “In what feels like a yo-yo period in the mortgage market, we are now seeing a few rate increases. In recent weeks, lenders have been pricing very competitively, and Halifax, the latest lender to increase rates, appears to be part of a broader market adjustment.

“Inflation has been creeping back up, which is expected to further impact the cost of borrowing, particularly for fixed-rate products, due to increased swap rates (the interbank rates that influence fixed mortgage rates).

“In times like these, we recommend securing the best mortgage deal as soon as possible to protect against any further increases.”

20 May 2025: 100% LTV Deals Offer Reducing Fixed Rates

Brokers have welcomed the launch of two ‘100%’ mortgage deals for buyers who have no cash deposit towards their purchase, writes Jo Thornhill.

April Mortgages and Gable Mortgages have both introduced long-term fixed rates aimed at buyers who need to borrow the full value of their home, known as a 100% loan to value (LTV) mortgage.

With April’s deal, borrowers must take an initial 10-year or 15-year fixed rate. Fixed rate costs start from 5.99% and there are no product fees.

The mortgage rate will also reduce over time automatically as the debt is repaid. For example, once the borrower has paid off 5% of the loan, they will be in the 95% LTV sector, so their rate will automatically reduce. It will be lowered again at 90% LTV and so on. 

If a borrower thinks their property has increased in value they can also request a new valuation (fee applies) with the hope of lowering their LTV and mortgage rate.

Unlike a standard fixed rate mortgage, borrowers are able to make unlimited overpayments and even redeem the loan in full penalty-free. 

Borrowers must have an annual gross income of at least £24,000 (single or household income) and no adverse credit history to be eligible.

Applicants for the deal, which is available through brokers only, will also need to be UK resident and under the age of 70. The property being purchased must be worth at least £75,000 and not a flat or new-build home.

Specialist lender Gable Mortgages, which was set up to help first-time buyers and key workers (teachers, police officers, NHS doctors and nurses, bus and train drivers, those in the armed forces, and in the fire service, for example) get on the property ladder, has also launched a zero deposit deal at 5.95% for a five-year fixed rate with no product fee. 

The equivalent deal for new-build properties is at 5.65%.

Buyers can borrow from £125,000 up to £1 million, subject to affordability, and mortgages will be advanced for most types of property, including flats, new builds and some leasehold properties.

Borrowers need to be 23 or over, a permanent UK resident for the past three years, and have a gross annual income of £27,780 (£25,000 for key workers). 

Nick Mendes, broker at John Charcol, said: “These new deals show lenders are starting to respond to the challenges faced by aspiring homeowners who are mortgage-ready in every way except for the deposit.

“Zero deposit mortgages can play an important role for renters who have strong, stable incomes and good credit histories, but have been unable to save due to the high cost of living. Unlike the 100% mortgages of the past, which were often seen as risky and too widely accessible, today’s versions are far more targeted and subject to robust affordability checks, which helps mitigate some of the risk.”

A handful of other lenders offer innovative mortgage deals to help first-time buyers, including Skipton building society’s Track Record 100% LTV mortgage, and Yorkshire building society’s £5k deposit mortgage.

David Hollingworth, associate director at broker L&C Mortgages, said: “Borrowers should think about the higher potential for negative equity if property prices were to fall. Negative equity (where the mortgage debt is larger than the value of the property) becomes a problem for those that need to sell, crystallising any loss.”

But he added: “The stability of April’s long-term fixed rate deals will provide shelter from fluctuating interest rates, which could help borrowers ride out a dip in prices.”

14 May 2025: Two-Year Fixes See Sharpest Drop In Six Months 

The cost of fixed rate mortgage deals has continued to tumble after the Bank of England lowered interest rates to 4.25% last week (8 May), writes Jo Thornhill.

Smaller banks and building societies are now following the lead of major high street lenders – including Halifax, Santander, Nationwide and HSBC – which have all slashed costs in the last fortnight.

Two-year fixed rates have undergone the biggest monthly fall (0.16 percentage points in May) since October last year, according to financial data firm Moneyfacts. It puts the average two-year fixed rate at 4.24% – the lowest recorded since September 2022.

Here’s more on the latest lender changes.

HSBC is making further cuts to its residential and buy-to-let fixed rate mortgage ranges for new and existing customer deals. It cut fixed rates in April and at the start of May and currently offers a two-year fixed rate for residential remortgage at 3.89% with a £999 fee (60% LTV). Its new lower rates will be announced and available from Monday (19 May).

Accord Mortgages, the specialist lending arm owned by Yorkshire building society, has cut fixed rate residential deals, available through brokers, by up to 0.24 percentage points. It is offering a two-year fixed rate for residential purchase for borrowers with a 5% deposit (95% loan to value) at 5.18%. The deal has a £495 fee but £300 cashback on completion.

TSB has bucked the trend of falling rates by increasing some of its fixed rate deals for residential and BTL borrowing by as much as 0.2 percentage points. The move is likely to be a way of controlling its business volumes. However, some selected deals for residential purchase and remortgage have been reduced in cost. The new rates will be unveiled on TSB’s website tomorrow (16 May).

Skipton building society has also increased some of its fixed rate deals for residential purchase by up to 0.07 percentage points, while lowering the cost of two and five-year remortgage rates. Its two-year fixed rates for home purchase now start from 4.01% with a £1,495 fee (60% LTV).

Virgin Money and Clydesdale Bank, the lending brands now owned by Nationwide building society, have cut selected purchase and remortgage deals, available exclusively through brokers. New rates and deals for each respective lending brand will be published tomorrow (16 May).

MPowered Mortgages has made its fourth cut to fixed rates since the start of April, reducing three-year fixed rate deals for new customers. These deals for residential purchase now start from 3.88% with a £999 fee at 60% LTV – or at 4.08% with no fee.

Principality building society has cut the cost of selected deals across its range by up to 0.2 percentage points. It has lowered the cost of two-, three- and five-year fixed rates at 65% and 75% loan to value. It has a two-year fixed rate for residential remortgage at 3.86% with a £1,499 (65% LTV).

Buckinghamshire building society has reduced the rates on a number of its mortgage deals for borrowers with impaired credit. Its Credit Revive and Credit Restore products have been cut by up to 0.4 percentage points. It has a two-year fixed rate Credit Revive deal at 5.59% with a £999 fee (70% LTV).

Foundation Home Loans has made significant cuts across its fixed rate buy-to-let mortgage range of up to 0.55 percentage points. Among the lender’s BTL deals, available through brokers, it has two- and five-year fixed rates starting from 4.09% with a 4% fee (65% LTV).

Nationwide building society and Rightmove, the online property portal, have launched a new ‘property lending checker’ which enables homebuyers to find out if a property they’re interested in buying would be eligible for mortgage lending. 

Typically homebuyers don’t find out if a property is eligible with their chosen lender until they apply formally for the mortgage – which can waste time and cause disappointment.

Nationwide considers various risks, such as a short lease on leasehold property, homes built from non-standard materials, and flood risk. But, via the online property checker, it can give a view on the likelihood of issues being flagged in the mortgage process.

Mortgage broker Nick Mendes at John Charcol welcomed the innovation. He said: “One of the biggest frustrations for buyers is discovering, often after they’ve found their dream property and submitted an application, that it isn’t eligible for a mortgage with that particular lender. 

“Integrating lending insights directly into property listings feels like a logical step forward, particularly if it helps speed up the process.”

But Mendes adds: “The key will be in how clearly the risks are communicated. Highlighting a property as high-risk is one thing, but buyers will need to understand what, if anything, they can do about it.”

Contacting a mortgage broker in the early stages of a buying process can also help sense-check whether a property is mortgageable.

Nationwide building society has also announced a relaxation to its lending criteria, meaning most customers will be able to borrow more. The lender says that, on average, mortgage customers could borrow an additional £28,000 based on a £300,000 loan.

Santander and Halifax have also loosened lending criteria in recent months after the Financial Conduct Authority (FCA) permitted lenders to reduce the interest rates used when ‘stress-testing’ long-term mortgage affordability.

Nationwide says its ‘stress rates’ have been cut across the board, with some first-time buyers now able to borrow up to six-times their income in some circumstances.

12 May 2025: Number Of Sub-4% Deals Grows

Barclays, Santander, TSB and The Mortgage Works have reduced their fixed rate costs following last week’s quarter percentage-point cut to the Bank Rate, writes Jo Thornhill.

The Bank of England trimmed its benchmark interest rate on 8 May from 4.5% to 4.25%.

Barclays has reduced the cost of fixed rate deals for new purchase and remortgage customers by up to 0.19 percentage points, while deals for existing customers – known as product transfer rates – have been cut by up to 0.42 percentage points.

The high street bank is offering a two-year fixed rate for remortgage priced at 3.88% with a £999 fee, for borrowers with at least 40% equity in their property (60% loan to value). The five-year equivalent deal is cut to 3.89%.

Two-year fixed rates for home purchase now start from 3.87% with an £899 fee (60% LTV). Barclays Premier banking customers can secure the same deal at 3.86%.

Among its product transfer deals for existing mortgage customers, Barclays has cut its fee-free one-year fixed rate deal for borrowers with 10% equity in their home (90% LTV) from 6.31% to 5.89%.

Santander has cut selected fixed rates by up to 0.2 percentage points. It is offering two- and five-year fixed rates for remortgage from 3.98% (60% LTV) with a £999 fee.

TSB has lowered fixed rates across its range by up to 0.2 percentage points. Among its new deals is a fee-free two-year fixed rate for home purchase at 4.84% for borrowers with a 10% cash deposit (90% LTV), which pays £500 cashback on completion.

The Mortgage Works, part of Nationwide, which itself reduced rates earlier this week for residential borrowers, has cut the cost of selected buy-to-let (BTL) fixed rates by up 0.3 percentage points. It has a two-year fixed rate for standard BTL remortgage at 3.29% with a 3% fee available up to 75% loan to value. 

For limited company BTL deals, there is a two-year deal for purchase or remortgage at 4.14% with a 3% fee, also up to 75% LTV.

David Hollingworth at broker L&C Mortgages said: “The lowest two- and five-year fixed rates are now pretty much on par and sit comfortably below 4%, a marked improvement on where rates sat only a matter of weeks ago.

“However, this latest Bank Rate cut was already priced into most fixed mortgage rates. Borrowers holding off in the hope of further rate drops may want to think about how quickly things can change.

“Just as rates have dipped again there’s no knowing what may be round the corner. Taking a deal and keeping it under review may be the better option.”

7 May 2025: Lenders Expecting Bank Of England Rate Cut

Nationwide building society is cutting the cost of a range of its fixed-rate deals and tracker rates by up to 0.3 percentage points, writes Jo Thornhill.

The move comes as lenders look ahead to tomorrow’s Bank Rate decision by the Bank of England, when a cut of at least a quarter percentage point (0.25) is expected. This would take the influential rate down from 4.50% to 4.25%.

Nationwide has cut selected two-, three-, five- and 10-year fixed rates and its two-year tracker rate deals to reduce its lowest fixed rate to 3.84%. 

This rate is available on two-year and five-year fixed rates for home purchase and home movers (new and existing customers) who have at least a 40% deposit (60% loan to value) and are borrowing £300,000 or more. There is a £1,499 fee.

It is offering an equivalent two-year deal for first-time buyers at 3.99% with a £999 fee (60% LTV) and no minimum loan size.

Selected two-, three- and 10-year fixed rate remortgage rates have also been lowered. Nationwide is offering a two-year deal at 5.44% (95% LTV) with a £999 fee, and a 10-year fixed rate at 4.49% (75% LTV) with a £999 fee.

Leeds building society has reduced selected fixed-rate deals by up to 0.2 percentage points. It is offering a two-year fixed rate for purchase or remortgage at 4.07% with a £1,499 fee (65% LTV), for example, and a no-fee equivalent deal at 4.34%. It has a two-year fixed rate at 4.29% (75% LTV) with a £999 fee.

The financial regulator, the Financial Conduct Authority, has launched a consultation into the mortgage industry, focused on ways to improve the remortgage process and make things easier and faster for borrowers. Among suggested policy changes, the FCA is looking for lenders to make it easier for customers to access cheaper loan deals and change the term of their mortgage, to reduce overall costs. The consultation period will close on 4 June.

Virgin Money, part of Nationwide, is cutting selected residential purchase deals by up to 0.2 percentage points and selected buy-to-let rates by up to 0.32 percentage points, effective from 8 May. Product transfer rates for existing borrowers are also being cut by up to 0.15 percentage points. The lender is offering a two-year and a five-year fixed rate for residential home purchase, both at 4.19% with a £895 fee, for borrowers with a 20% deposit (80% LTV).

MPowered Mortgages has cut its two-, three- and five-year fixed rates deals for residential purchase and remortgage by up to 0.17 percentage points. The lender cut selected three-year fixed rates less than a week ago.

Its two-year fixed rates for purchase now start from 3.94%, while equivalent three-year rates start from 3.89% and five-year rates start at 4.04%. All deals have a £999 fee and require at least a 40% cash deposit.

Skipton building society has launched a product to help first-time buyers. The Delayed Start Mortgage is available to buyers with at least a 5% cash deposit (95% loan to value), with first-time borrowers not having to make any repayments for the first three months – effectively a payment holiday. 

2 May 2025: Offers Hit 7x Income On Longer Fixed Rates

Mortgage lenders are continuing to reduce the cost of fixed-rate borrowing as the price war intensifies in the run-up to Bank of England’s next interest rate decision on 8 May, writes Jo Thornhill.

Halifax has cut selected fixed rates for residential purchase and remortgage, including a 0.31 percentage rate cut on its two-year deal for remortgage, which takes the rate down to a market-leading 3.79%.

This deal has a £1,999 fee, is only available on mortgages worth more than £250,000, and borrowers must have at least 40% equity in their home (60% loan to value).

Among Halifax’s other deals is a five-year fixed rate for remortgage at 3.98% with a £999 fee (also 60% LTV) but with no minimum loan size. This represents a cut of 0.3 percentage points on the previous rate.

HSBC has cut selected fixed rates for the second time in a week (see stories below). The latest round of cuts includes a reduction to its higher loan to value borrowing, with the lender now offering a fee-free two-year fixed rate for home purchase at 95% LTV priced at 4.99%.

Costs of its two- and five-year fixed rates for remortgage have also fallen to start from 3.89% with a £999 fee at 60% LTV. HSBS Premier banking customers can get the same deal at a rate of 3.84%.

Santander has also reduced the cost of fixed rates across its range of purchase and remortgage range. It has a two-year fixed rate for homemovers at 3.89% with a £999 fee (60% LTV) and an equivalent five-year deal at 3.92%. It is also offering competitive three-year fixed rates for purchase, including a deal at 85% LTV priced at 4.49%, or at 4.75% for buyers with a 10% deposit (90% LTV).

Both deals come with a £999 fee. For remortgage, two-year fixed rates now start from 4.09% with a £999 fee (60% LTV), or from 4.12% for an equivalent five-year fix.

NatWest has cut selected fixed rates across its residential range, available through brokers, to offer competitive two- and five-year fixed rates for home purchase at 3.88%. Borrowers need at least a 40% cash deposit (60% LTV) to bag this rate, with both deals having a £1,495 fee.

The bank has also relaxed its lending criteria to allow customers to borrow more, and launched its ‘Family-Backed mortgage’, which is a joint borrower sole proprietor deal (JBSP), which can help younger borrowers onto the property ladder with the help of family members.

Barclays has reduced selected fixed rates and has broadened its range of deals at sub-4%. It had been among the first lenders to drop fixed rates below 4%, but initially this had been for its Premier banking customers only.

The bank is now offering a two-year fixed rate to all new customers looking to purchase a property at 3.92% with an £899 fee (60% LTV). The equivalent five-year deal for purchase is now at 3.93% with the same fee. Barclays two-year and five-year fixed rates for remortgage now start from 3.96% with a £999 fee (60% LTV).

April Mortgages has increased its lending income multiple to seven times income for borrowers with a minimum income (single person or household income) of £50,000 taking a 10 or 15-year fixed rate deal. The maximum LTV is 85%, and there are no early repayment penalties.

The standard maximum income multiple offered by most lenders is 4.5. April has relatively high rates compared to market-leading deals. Its 10-year fixed rate deals start at 5.55%, for example, with a £995 fee (60% LTV).

Mark Harris, chief executive at mortgage broker SPF Private Clients, said: “NatWest’s launch of a market-leading five-year fix at 3.88%, along with a joint borrower sole proprietor mortgage for the first time and other enhanced affordability measures for all customers, is part of a growing trend among lenders keen to do more business. 

“Falling fixed-rate mortgages and reversion rates for borrowers coming to the end of their current deal points to a lower rate environment. The easing of the cost-of-living crisis and [falling] inflation is playing a part, along with the Financial Conduct Authority clarifying its stance on affordability stress rates.”

Will Rhind at mortgage broker Habito said: “Looking ahead, much will depend on what the Bank of England decides on 8 May. It appears lenders are pricing in a Bank Rate cut, hence the recent reductions, so it’s more likely that we’ll see fixed rates settle around current levels for now, particularly while the broader economic outlook remains uncertain. 

“An interest rate cut could provide further room for lenders to trim rates, but I’d be cautious about expecting a sharp drop. Lenders are keen to stay competitive, but they’re also mindful of risk and market volatility.

“Overall, while this is positive news for borrowers, I’d advise people not to hold out for significantly lower rates in the short term, especially with affordability and lender criteria still relatively tight.”

Elsewhere, TSB, MPowered Mortgages, Gen H, the specialist lender for first-time buyers, and Clydesdale Bank, part of Nationwide building society, have reduced selected residential fixed rate deals for new customers.

TSB has cut rates for purchase and remortgage borrowers, as well as deals for existing customers looking to fix after coming to the end of their current deals. It is offering a two-year fix for home purchase at 4.04% with a £995 fee for buyers with a 25% cash deposit (75% LTV). It has a five-year fixed rate for remortgage at 4.39% with a £995 fee (also at 75% LTV).

MPowered is offering a three-year fixed rate deal for remortgage at 3.98% with a £999 fee (60% LTV), the fee-free option is at 4.27%, and there is an added perk on both deals of £250 cashback on completion.

Gen H has cut selected five-year fixed rates, with deals for purchase now starting at 5.13% with a £1,499 fee (60% LTV). This rate is available for borrowers who use Gen H’s legal service as part of its homebuying bundle deal.
Bucking the trend of rate cuts, Clydesdale Bank has increased two and five-year buy-to-let fixed rates by up to 0.09 percentage points at 60% and 75% LTV.

16 April 2025: Nationwide Offers Market-Leading Fix At 3.89%

Lenders across the board have been making cuts to fixed rate mortgage costs this week, with Nationwide producing a new market-leading sub-4% deal, writes Jo Thornhill.

Nationwide has cut rates for new and existing customers across its first-time buyer and homemover range by up to 0.25 percentage points. The lender is offering two-and five-year fixed rate deals both priced at 3.89% with a £1,499 fee and 40% deposit. The five-year deal is the best of its kind in the market. However, both mortgages are limited to a loan size of £300,00.

The current market leader for a deal with no minimum loan size is from Yorkshire BS which is offering a two-year fixed rate for purchase priced at 3.91% with a £995 fee (60% LTV) – or 3.98% for the equivalent remortgage deal.

Nationwide has also cut selected fixed rates for new remortgage customers and existing customers looking to switch to a new deal (product transfer rates) by up to 0.29 percentage points, effective from 25 April.

The lender offers both a two-year or a five-year remortgage fixed rate at 3.94% with a £1,499 fee (minimum loan of £300,000) or equivalent deals at 3.99% with a £999 fee for mortgages of less than £300,000. These deals all require at least 40% equity in the property. Product transfer fixed rates also start from 3.94% (60% LTV) with a £999 fee.

Halifax also cut selected deals for home purchase and remortgage this week by up to 0.21 percentage points. It is now offering two-year fixed rates priced from 3.94% with a £999 fee for a 40% deposit.

Among its other deals is a five-year fixed rate for purchase at 4.10% with a £999 fee (60% LTV) and a two-year deal for purchasers priced at 4.34% with a £999 fee for a 20% deposit. 

Halifax, the UK’s largest mortgage lender, has also cut remortgage fixed rates across a broad range of deals by up to 0.1 percentage points. Two-year remortgage fixed rates now start from 4.10% (60% LTV) with a £1,999 fee or from 4.18% for the equivalent five-year deal.

The rate cuts follow similar moves by Santander, Barclays, NatWest and Coventry and Yorkshire building societies, which are offering deals priced at under 4%. 

What else is happening?

Here’s a summary of this week’s mortgage price movements by lender.

HSBC has cut its fixed rates across residential and buy-to-let purchase and remortgage deals for new and existing customers, effective from Monday 28 April. While the new rates and deals won’t be unveiled until Monday, the lender has said it will be offering deals at sub 4%, in line with the sub-4% rates it already offers its Premier banking customers. For example, it offers a five-year fixed rate at 3.99% with a £999 fee for Premier banking customers looking to remortgage

MPowered Mortgages has cut selected fixed rates by up to 0.12 percentage points, effective from 25 April. Its lowest two-year fixed rate for purchase is now priced at 3.99%. Over three years the rate is 3.92%, while its five-year fix is at 4.09%. All deals are for home buyers with at least 40% deposit (60% LTV) and have a £999 product fee. Fee-free equivalent rates are available starting at 4.24% for a two-year fix and 4.23% for a five-year deal.

TSB has cut selected fixed rates for existing residential and buy-to-let borrowers by up to 0.25 percentage points. It follows reductions made by the lender earlier this month to its fixed rate ranges for new customers. Among the new deals is a two-year residential product transfer rate at 3.99% with a £1,495 fee, or at 4.19% with a £995 fee.

Gen H, the specialist lender for first-time buyers, has lowered the cost of selected two-year fixed rates, including cutting its 90% loan to value deal by 0.3 percentage points to 5.94% with a £1,499 fee. This deal is available to first-time buyers who take Gen H’s homebuyer bundle, which includes legal services.

Shorter fixes becoming more competitive

Shorter-term deals, such as two- and three-year fixed rates, are increasingly becoming more competitive than the equivalent five-year fixed rates, according to brokers, marking a reversal of the trend seen over the past two and half years.

Data from Rightmove shows that the average two-year fixed mortgage rate at 60% LTV is now priced at 4.18% which makes it cheaper than the average five-year fixed equivalent priced at an average 4.19%.

David Hollingworth, director at mortgage broker L&C Mortgages, said: “There’s been another flurry of new rates coming through and that has resulted in a clutch of deals at under 4%. 

“Markets have shifted their expectations and look to be expecting that further interest rate cuts could come sooner than previously expected, following the turbulence in stock markets.

“Shorter-term deals are also dropping below the rates on five-year deals. Traditionally short-term rates would be expected to be lower but in recent years that has been flipped on its head and five-year rates have for a while been the cheapest. 

“With that trend now on the turn borrowers will have to weigh up what works best for them, a shorter term rate or security over the longer term to protect against any volatility along the way.”

The next Bank of England Bank Rate decision is on 8 May.

15 April 2025: Choice Of Low Deposit Deals At 17-Year High

Santander and HSBC are among major lenders cutting fixed mortgage rates as instability in global markets prompts lenders to anticipate further reductions to the Bank of England Bank Rate, writes Jo Thornhill.

Santander has announced reductions across its residential purchase and remortgage range, of up to 0.21 percentage points, including new two- and three-year fixed rates at under 4%, effective from 17 April. Selected buy-to-let (BTL) deals have also been cut by up to 0.16 percentage points.

The bank’s two- and three-year fixed rates for residential home purchase for buyers with at least a 40% cash deposit (60% loan to value) have fallen to 3.97% and 3.99% respectively, both with a £999 fee.

Both Barclays and Coventry building society cut rates last week to offer sub-4% fixed rates for home purchase, in an intensification of the current mortgage price war.

HSBC has also lowered the cost of its residential and BTL fixed rates for new and existing borrowers. The new rates and deals will be unveiled and available, through brokers, from 16 April.

Nick Mendes at broker John Charcol said: “There is definitely a shift in sentiment. Where we had initially expected two interest rate cuts this year, the market is now pricing-in up to four by the end of 2025, which would take the benchmark Bank Rate to 3.5% [from its current 4.5% assuming a 0.25 percentage point cut each time].”

“Some lenders have moved quickly to offer sub-4% deals, but others may be more cautious, particularly lenders that have recently locked in business at higher rates. There is the issue of pipeline risk, with borrowers trying to switch mid-process to access better deals, which could create operational and financial challenges for lenders.”

Mortgage choice for borrowers with a low cash deposit or equity in their home is at its highest in 17 years, according to Moneyfacts. Its data shows there are 442 loan deals for borrowers with a 5% deposit this month compared to 335 deals a year ago (it was 575 in March 2008, the previous high). For borrowers with a 10% deposit or equity, there were 845 deals this month, compared to 774 in April 2024 (and compared to 957 in March 2008, also the previous high for 90% LTV deals).

Rate news round-up

Co-operative Bank for Intermediaries, owned by Coventry building society, has reduced selected rates for residential and BTL borrowers, both new and existing customers. Two- and three-year fixed rate deals, available through brokers, for new residential borrowers, have been lowered by up to 0.26 percentage points. Product transfer deals for existing customers have been cut by up to 0.18 percentage points. The lender is offering two-year fixed rates for residential purchase from 4.37% (60% LTV) with a £999 fee.

The Mortgage Works, the specialist lender owned by Nationwide building society, has cut selected two- and five-year fixed rate deals for buy-to-let borrowers by up to 0.25 percentage points, effective from 17 April. It is offering a two-year deal for BTL purchase or remortgage at 3.14% with a 3% fee (65% LTV). The lender has also launched a range of £750 cashback deals for limited company landlords looking to remortgage. A five-year rate at 75% LTV starts from 4.99% with a 3% fee.

Virgin Money, also part of Nationwide building society, has cut selected fixed rates for residential borrowing by up to 0.15 percentage points, and across its BTL range by up to 0.2 percentage points, effective from 17 April. Among the deals, available through brokers, is a two-year fixed rate for residential purchase at 4.33% with an £895 fee, for buyers with a 20% cash deposit (80% LTV).

Gen H, the specialist lender focused on the first-time buyer market, has cut fixed rates across its range by up to 0.25 percentage points. It is offering a two-year fixed rate at 5.99% with a £999 fee (85% LTV) for borrowers who take its ‘homebuyer bundle’, where they use Gen H’s conveyancing and legal service.

Principality building society has lowered selected residential fixed rates by up to 0.22 percentage points, but it has increased the cost of deals for shared ownership and new build mortgages by up to 0.66 percentage points. The mutual lender’s five-year fixed rates have seen the biggest reductions. It is now offering a fee-free five-year fixed rate deal for residential remortgage at 4.35% (65% LTV).

West Brom building society has cut selected two-year residential fixed rates by up to 0.31 percentage points. Its two-year remortgage fixed rates, for borrowers with at least 20% equity in their home (80% LTV) drop by 0.3 percentage points to 4.39%, while the equivalent purchase deal has fallen by 0.31 percentage points to 4.29%. Both deals have a £999 fee.

Newcastle building society has reduced selected residential fixed rates for borrowers requiring a large mortgage (£1.5 million or more) by up to 0.26 percentage points. It has a two-year fixed rate in this sector at 4.9% with a £1,999 fee (65% LTV).

Melton building society has cut a range of its residential fixed rates by up to 0.29 percentage points, including many of its high loan-to-value rates. Among the new rates the mutual lender has a 5.25% five-year fixed rate deal for residential buyers with a 5% cash deposit (95% LTV). It has a £199 application fee but no other product fees.

Atom Bank, the digital bank, has cut fixed rates, available through brokers, across its residential range by up to 0.2 percentage points. There are two- and three-year fixed rates, both at 4.99% with a product fee (the fee is variable based on the size of the loan and the specific deal).

Precise Mortgages, the specialist lender for landlords with investment properties, has cut selected fixed-rate deals by up to a full percentage point (1%). It has deals starting from 3.59% for a two-year fixed rate with a 5% fee (65% LTV). 

Lloyds, the biggest mortgage lender with brands including Halifax, BM Solutions and Bank of Scotland, has relaxed its lending policy to enable customers to borrow more. The bank has said the change could see its typical customers borrow up to 13% more (£38,000 in real terms), based on a household income of £75,000.

Santander similarly relaxed its ‘stress test’ for borrowers last month, enabling customers to borrow in the region of £10,000 to £35,000 more on a mortgage, on average.

It comes after the regulator the Financial Conduct Authority (FCA) said last month that since interest rates had fallen, the stress tests (or higher interest rates) used by many mortgage providers when making lending decisions were too restrictive and could be preventing access to ‘otherwise affordable mortgages’. 

The FCA will next month launch a consultation looking at ways to simplify the remortgage process.

10 April 2025: Barclays, Coventry Offering Sub-4% Deals

A growing number of lenders, including Barclays, TSB and Coventry building society, are reducing the cost of fixed-rate mortgages, resulting in the return of deals priced below 4%, writes Jo Thornhill. 

The fixed-rate reductions are in response to market predictions that the Bank of England will cut the benchmark Bank Rate when its rate-setting Monetary Policy Committee (MPC) next meets on 8 May.

President Trump’s recent trade tariff announcements have triggered stock market turmoil around the world. And, although some stability has returned – helped by a 90-day pause by the US on the introduction of many tariffs – so-called ‘swap’ rates, which banks use to lend to each other, have nudged downwards. 

This has resulted in lenders producing cheaper fixed-rate mortgages for both purchase and remortgage. Here’s a round-up of the latest movements.

Barclays has cut selected fixed rates by up to 0.38 percentage points. It includes reductions to its standard two and five-year fixed rates for purchase, which have both fallen (from 4.11% and 4.12% respectively) to 3.99%. Both deals charge a £899 fee and require a minimum 40% cash deposit.

Coventry building society has lowered a range of deals for new and existing customers with residential rates cut by up to 0.25 percentage points and buy-to-let deals cut by up to 0.2 percentage points. The mutual lender is offering a two-year deal for residential purchase at 3.99% with a £999 fee for borrowers with at least a 35% cash deposit.

TSB has lowered the cost of selected two-year fixed-rate deals for new and existing customers (product transfer deals) by up to 0.25 percentage points. It is offering a two-year fixed rate for remortgage at 4.19% with a £1,495 fee (60% LTV). It has a two-year fixed rate first-time buyer deal at 4.34% with a £995 fee at 75% LTV.

MPowered Mortgages has cut selected fixed rates by up to 0.21 percentage points. Two-year fixed rates now start from 4.05% with a £999 fee (60% LTV), while equivalent three- and five-year rates start from 4.04% and 4.14% respectively.

Gen H, the specialist lender that offers deposit boost and other innovative mortgage loans to help first-time buyers, has reduced selected deals (up to 80% loan to value) by up to 0.2 percentage points, including deals under its New Build Boost scheme.

LendInvest has reduced its five- and seven-year BTL fixed rate deals by up to 0.2 percentage points. It is offering a five-year standard BTL deal at 4.69% with a 7% fee at 75% LTV.

Molo, the specialist buy-to-let lender, has cut fixed rates by up to 0.1 percentage points. It is offering a two-year fixed rate for BTL remortgage at 5.03% with a 2.5% fee at 75% LTV.

In contrast to the majority of lenders, Clydesdale Bank, owned by Nationwide building society, has increased selected two- and five-year fixed rates this week by up to 0.15 percentage points, while reducing a handful of broker-exclusive rates and product transfer deals for existing customers.

Nick Mendes at broker John Charcol said: “Since President Trump’s so-called ‘liberation day’ announcement [on 2 April], there has been a sharp change in market sentiment. 

“Just over a week ago, markets were expecting two further Bank of England rate cuts this year. Now, they are pricing in four. If that plays out, the Bank Rate would fall from 4.5% now, to 3.5% by the end of the year –  a significant shift driven by fears that a prolonged trade war could slow global growth.”

3 April 2025: Lenders Cut Costs Across Range Of Deals

Growing numbers of lenders are reviewing their fixed rate deals as markets react to the trade tariffs announced by US President Donald Trump.

Gilt prices and swap rates have edged down prompting a number of banks and building societies to cut fixed mortgage rates, including Santander and TSB, as well as mutual lenders Coventry and Skipton (building societies). Brokers expect more fixed rate cuts next week as the market adjusts.

However some lenders, including Halifax, Barclays and NatWest, have taken the opportunity to increase selected fixed rates, most likely to control business volumes and service levels (full round-up of mortgage rate changes below).

Mortgage market expert Ray Boulger at broker John Charcol believes the trade tariff turmoil could lead to lower mortgage rates. He said: “While a trade tariff war can only be bad for the world economy there are some trade-offs for the UK. Gilt yields have fallen and are nearly 25 basis points lower following the tariff announcement.  

“It appears there will be little, if any, retaliation to the tariffs from the UK and so, unlike in the US, upward inflationary effects should be very limited. On the other hand, more competition from suppliers less able to export to the US, lower oil and freight costs plus a stronger sterling against the dollar should all help to lower inflation here.

“A better outlook for inflation and a more challenging economic situation means that a cut in Bank Rate on 8th May now looks almost certain, and equally important the outlook is for an acceleration of future cuts. Many lenders are likely to cut mortgage rates next week and we can look forward more optimistically now to further falls over the course of the year.”

What’s happening to fixed rates?

Santander has cut selected two and five-year fixed rates for new and existing customers by up to 0.1 percentage points. The bank’s two-year fixed rate purchase deals at 85% LTV up to 95% LTV will be reduced by up to 0.08%, while some two-year fixed remortgage rates at 60% LTV up to 75% LTV will be lowered by up to 0.07 percentage points. Five-year fixed rate remortgage deals at 75% LTV are cut by up to 0.1%.

TSB has lowered the cost of selected purchase two, three and five-year fixed rates by up to 0.15 percentage points. The cuts apply across deals, including first-time buyer rates, from 75% LTV up to 95% LTV. The bank is offering a fee-free two-year purchase deal at 4.89%, for example, and a three-year purchase deal at 5.04% with a £495 fee (85% LTV).

Coventry building society has reduced all two and three-year fixed rate residential deals for new and existing customers. It has a fee-free two-year fixed rate for purchase at 5.12% (90% LTV). The lender has also cut rates on selected five-year buy-to-let fixed rates for remortgage.

Skipton building society has also cut the cost of fixed rate deals across its range by up to 0.32 percentage points. Its two-year fixed rate for remortgage borrowers with 10% equity in their home (90% LTV) is cut from 5.35% to 5.06% with a £495 fee. The mutual is also offering a fee-free two-year purchase fixed rate at 5.68% (95% LTV) with £1,000 paid in cashback on completion.

Halifax for Intermediaries, which offers deals exclusively through brokers, has cut the cost of some fixed- rate remortgage deals by up to 0.16 percentage points, while other deals have increased by up to 0.14 percentage points. The same changes also apply to its product transfer range for existing customers.

The lender is now offering a two-year fixed rate deal for remortgage priced at 4.36% (60% LTV) with a £999 fee, and a five-year equivalent deal at 4.28%. Halifax also offers a range of 18-month fixed rate deals for remortgage, starting at 4.11% with a £1,499 fee.

NatWest has increased selected deals for new borrowers by up to 0.14 percentage points across residential and buy-to-let deals. Its five-year fixed rate for residential purchase (75% LTV) is now at 4.58%.

Barclays has increased selected purchase and remortgage deals by up to 0.12 percentage points. Affected deals include its Barclays Premier five-year fixed rate for homebuyers which has been hiked from a competitive 3.99% up to 4.11%. The deal, which is available exclusively to Premier banking customers with a 40% cash deposit, charges a £899 product fee.

For other customers, Barclays is now offering a two-year fixed rate for purchase at 4.8% with an £899 (90% LTV) and a five-year deal at 4.12% with the same fee at 60% LTV.

For remortgagers, the bank is offering a five-year fixed rate at 4.97% with a £999 fee, available to borrowers with at least 15% equity in their home (85% LTV).

Virgin Money, owned by Nationwide building society, has increased selected five-year fixed rates for purchase and remortgage by up to 0.14 percentage points. Selected five-year product transfer fixed rates have been increased by up to 0.1 percentage points.

The lender is offering a five-year fix for remortgage at 4.35% with a £995 fee (75% LTV) or a fee-free option at 4.47%. These deals have both increased by 0.08 percentage points.

Buy-to-let borrowing surged at the end of 2024, according to the latest data from banking trade body UK Finance. Its figures show 52,648 BTL loans (a total of £9.6 billion) were advanced between October and the end of December (Q4) last year – a rise of 39.2% on the same period in 2023. 

Average BTL investment yield (rental income relative to the property’s value) has risen to 7% (Q4 2024) compared to 6.7% for Q4 2023.

March 27 2025: Santander, NatWest And TSB Announce Changes

Lenders are repositioning their fixed rate offerings as the Bank of England kept interest rates on hold at 4.5% last week (20 March), writes Jo Thornhill.

Santander cut selected purchase fixed rates by up to 0.15 percentage points effective from tomorrow (28 March). But some five-year purchase and remortgage fixed rates, for borrowers with between a 10% and 40% deposit will be increased by up to 0.09 percentage points.

Selected buy-to-let (BTL) fixed rates for new and existing borrowers will also be reduced by up to 0.1 percentage point.

The bank’s new rates and deals for residential and BTL borrowing will be unveiled tomorrow.

NatWest has made reductions of up to 0.1 percentage points across its purchase and remortgage deals for new customers, but selected five-year fixed rate deals have increased by up to 0.03 percentage points.

Among the deals which have seen a cut are a fee-free two-year fixed rate for buyers with a 5% cash deposit (95% LTV) at 5.13%, and a five-year purchase rate for those with a 15% deposit (85% LTV) at 4.42% with a £995 fee plus £250 cashback paid on completion.

HSBC has launched a range of buy-to-let deals for its Premier banking customers. The two- and five-year fixed rate deals are available to those buying or remortgaging at between 60% loan to value (LTV) and 80% LTV. 

The lender is offering a two-year Premier fixed rate for BTL purchase at 4.29% with a £1,999 fee (60% LTV), or an equivalent five-year deal at 4.24%. 

To be eligible for an HSBC Premier account you must have either an annual income of £100,000 or more (paid into the account) or £100,000 or more in savings or investments with the bank.

HSBC has also reduced the amount of cashback paid on completion of a range of its residential mortgage deals, including first-time buyer, home mover and remortgage deals.

TSB has cut selected two and five-year fixed rate BTL deals for new and existing customers by up to 0.2 percentage points (effective from tomorrow, 28 March).

Virgin Money, the brand owned by Nationwide building society, is making cuts of up to 0.15 percentage points across selected purchase and remortgage deals, as well as reducing the cost on a number of BTL deals in its range. Product transfer deals for existing residential borrowers have also been cut by up to 0.12 percentage points. The lender’s two-year fixed rates for residential purchase now start at 4.37%, while five-year deals start at 4.24% (65% LTV).

Clydesdale Bank, also owned by Nationwide building society, has tweaked down the cost of borrowing on selected two-year residential purchase fixed rates, available through brokers, by 0.05 percentage points. 

Its two- and five-year fixed rates for professionals (such as doctors and dentists) have been cut by up to 0.37 percentage points (65% LTV up to 80% LTV), while deals at 90% LTV for newly qualified professionals have been cut by 0.03 percentage points.

Principality building society has cut selected fixed rates by up to 0.35 percentage points, while increasing other deals by up to 0.12 percentage points. The mutual lender is offering a two-year fixed rate for remortgage at 4.25% with a £1,499 fee (65% LTV). It has a two-year fixed rate, also for remortgage, at 5.11% with an £895 fee (85% LTV).

Family building society has made a range of changes to its mortgage deals, including reducing some fixed rates by up to 0.1 percentage points while increasing the cost of others by up to 0.15 percentage points. It has also cut selected two-year BTL deals by up to 0.1 percentage points. It is offering a two-year fixed rate for purchase at 5.14% with a £999 fee.

The mutual lender has also increased the amount it will lend on a joint borrower sole proprietor basis up to £1 million.

Marsden building society has launched a five-year fixed rate deal for home buyers and remortgage customers who have a 5% cash deposit or equity in their home (95% LTV) at 4.99%. The deal has no product fee.

United Trust Bank, the specialist lender, has cut selected BTL deals by up to 1.76 percentage points. Its two-year fixed rates for standard buy-to-let now start from 5.69%, and equivalent five-year deals start from 4.99%. 

For holiday let purchase two-year rates start from 5.89% and five-year deals now start from 5.94%. These deals all have a 5% fee and require a 35% deposit or equity.

Accord, the lending brand owned by Yorkshire building society, has launched a range of first-time buyer deals paying cashback of up to £6,250, to combat the increase in stamp duty many borrowers will face from 1 April. The nil rate band for stamp duty is set to fall from £425,000 to £300,000 for first-time buyers, when buying a property up to £500,000.

The Accord deals, available through brokers, are fee-free five-year fixed rates, which start from 5.19% (for buyers with a 10% deposit). Deals are available up to 95% LTV, or up to 90% LTV for new builds. Cashback of £2,500 is paid on property purchase up to £300,000, and then tiered up to a maximum of £6,250 on property purchase of £500,000.

David Hollingworth at mortgage broker L&C Mortgages said: “Lenders remain highly competitive and continue to make small adjustments to improve rates wherever they can. 

“That trend looks likely to continue so it’s unlikely to result in any major drops in rates. But mortgage rates should remain relatively stable in the near term.”

March 19 2025: Market Expects Bank Of England To Hold At 4.5%

NatWest Bank is cutting selected purchase and remortgage fixed-rate deals by up to 0.24 percentage points, while Halifax is trimming selected two and three-year fixed rates for home purchase but increased equivalent five-year deals, writes Jo Thornhill.

Other lenders have made similar adjustments to their fixed-rate offers ahead of tomorrow’s decision on interest rates by the Bank of England (due at 12 noon on 20 March).

Among its new deals, NatWest is offering a fee-free purchase rate at 4.8% for borrowers with a 10% cash deposit (90% loan to value). There is £250 cashback on completion.

It is also offering a fee-free two-year fixed rate for remortgage at 4.72% (75% LTV), which also pays £250 cashback.

Halifax is cutting selected two and three-year fixed rates by up to 0.15 percentage points, but it has increased selected five-year fixed rates by up to 0.11 percentage points. The new rates and deals will be live from tomorrow (20 March).

Nationwide building society has lowered the cost of selected fixed rate deals by up to 0.26 percentage points for borrowers with a smaller deposit or equity in their home (effective from 21 March). The rate reductions apply on two, three and five-year fixed rates for purchase and remortgage between 80% and 95% loan to value. The new deals include many rates priced under 5% even for those with the smallest cash deposits.

For example, the mutual lender is offering a five-year fixed rate for homebuyers with a 5% deposit (95% LTV) at 4.99% with a £999 fee. The same deal at 90% LTV is now 4.57%. The two-year purchase fixed rate for borrowers with a 10% deposit (90% LTV) has also dropped to 4.99%, but this deal is fee-free.

Virgin Money, owned by Nationwide building society, has cut a range of residential and buy-to-let deals, available through brokers, for new and existing customers, including its shared ownership new build products. It is offering a five-year fixed rate for purchase for borrowers with a 20% deposit (80% LTV) at 4.31% and has a product transfer deal (for existing customers wanting a new deal) at 4.04% (65% LTV) with a £1,995 fee.

Clydesdale Bank, also owned by Nationwide, has lowered selected residential deals, available through brokers, by up to 0.35 percentage points. It is offering a two-year fixed rate for remortgage at 4.42% with a £1,499 fee for borrowers with 25% equity in their property.

Gen H, the specialist lender targeting first-time buyers, has launched a new product to help get more borrowers onto the property ladder. Its New Build Boost mortgage is available to those buying a new build home through the housebuilder Persimmon Homes (120 different sites across England), and who have a 5% cash deposit. Gen H will lend a mortgage on an 80% loan to value basis, lending an interest-free equity loan for the difference up to 95% LTV.  The five-year fixed rate deal, priced at 6.49%, has a £999 fee.

Accord, the buy-to-let lender owned by Yorkshire building society, has cut selected fixed-rate and tracker deals across its landlord range by up to 0.15 percentage points. It is offering a three-year fixed rate at 4.59% for BTL purchase or remortgage (65% LTV) with a £995 fee and £250 cashback. Its two-year fixed rate for remortgage is now 4.54% with a £1,995 fee (75% LTV).

Laith Khalaf at AJ Bell said the prospects for interest rates remain uncertain: “Markets are pricing-in little chance of a rate cut at the next Bank of England meeting, though two more rate cuts are currently expected by the end of the year. 

“However, there are substantial risks to this outlook. The latest inflation reading for January came in hot and the macro-economic situation is volatile as Donald Trump’s trade policies threaten to unleash a global trade war, which could damage growth and push up inflation.

“The Spring Statement in the UK may also contain some tax and spending decisions which influence the interest rate committee one way or another. In April we will see the chancellor’s national insurance and minimum wage hikes come into effect which could also serve to increase prices for consumers, thereby making the Bank of England wary of cutting rates.

“At the last vote, two members wanted to cut rates to 4.25%, which shows some willingness to stimulate the economy in the face of rising inflation. While we may not get a change in interest rates at this forthcoming meeting, the commentary and voting record will still be instructive as to the mood enveloping Threadneedle Street.”

13 March 2025: Market Prepares For Bank Rate Decision

Major lenders including HSBC, Barclays, Santander and TSB have reduced the cost of fixed-rate borrowing ahead of next week’s interest rate decision from the Bank of England, writes Jo Thornhill.

HSBC has cut selected deals for purchase and remortgage by up to 0.2 percentage points, while Barclays has reduced the cost of deals for larger mortgages (£2 million or more) by up to 0.25 percentage points from 14 March, and also lowered rates across its product transfer range for existing borrowers by up to 0.14 percentage points.

Santander has cut rates for new and existing residential and buy-to-let customers by up to 0.25 percentage points, while TSB has cut selected fixed rates for new and existing customers by up to 0.15 percentage points (both reductions effective 14 March). 

At the same time, TSB has increased selected five-year fixes on deals up to 75% loan to value by 0.05 percentage points.

The Bank of England’s monetary policy committee (MPC), which meets 10 times a year to decide the level of the benchmark Bank Rate, will meet on Thursday 20 March. 

It voted to cut the Bank Rate, which influences mortgage and other loan rates, from 4.75% to 4.5% in February. But market-watchers expect it remain on hold next week in response to the rise in inflation to 3% in January, up from 2.5% in December 2024.

The inflation figures for February are expected on 25 March.

Nick Mendes at broker John Charcol says the latest round of cuts reflects growing competition, with lenders looking to retain existing customers, rather than an expectation that Bank Rate will fall: “With an estimated 1.8 million people coming off low pandemic-period fixed rates and lenders aiming to retain existing clients and secure new ones, this has led to several high street lenders repricing downwards across the loan to value (LTV) brackets.”

HSBC is now offering a two-year fixed rate for home purchase at 4.12% with a £999 fee. The five-year equivalent drops to 4.07%, also with a £999 fee (both deals require a 40% cash deposit).

Rates have also been cut at higher LTV ratios. For buyers with a 10% deposit (90% LTV), HSBC’s rate is now at 4.85% with a £999 fee, or 4.61% over five years with the same fee.

Barclays has a two-year fixed rate for purchase or remortgage at 4.21% for loans of £2 million or more, while five-year equivalent deals start from 4.28% (both deals at 60% LTV).

Santander and TSB will unveil their respective new rates and deals tomorrow (14 March).

HSBC, Barclays and Santander are among a small number of lenders offering fixed rates at under 4% (see story below), although these rates generally come with conditions or high fees. For example, HSBC Premier customers, who must have annual income or savings of at least £100,000, can get a rate of 3.98% on a five-year fix with a £999 fee.

Round-up: What else is happening?

The Mortgage Works, the buy-to-let lender owned by Nationwide building society, has cut selected fixed rate deals for landlords by up to 0.3 percentage points, effective from 15 March. It has a two-year fixed rate deal for purchase or remortgage at 3.24% with a 3% fee for borrowers 35% equity or more in their BTL property.

Aldermore, the specialist lender for borrowers with lower credit scores, has cut rates by up to 0.7 percentage points across its higher LTV range for both new and existing residential borrowers. 

It is offering a two-year fixed rate for new customers with a 5% deposit (95% LTV) at 6.54% with a £999 fee. Equivalent five-year rates at 95% LTV have been cut by 0.7 percentage points from 6.69% to 5.99%.

For existing customers, the lender is offering deals at 80% LTV from 6.19%, also with a £999 fee. 

Nottingham building society has launched two five-year fixed-rate mortgage deals, available through brokers, which pay £2,500 or £5,000 cashback on completion. The lender says the fee-free deals are aimed at homebuyers who will be hit with higher stamp duty costs from 1 April, when the nil rate band thresholds will be lowered.

For buyers with a 25% cash deposit (75% LTV), the rate on offer is 5.28% with £2,500 cashback, while the other deal for those with a 10% deposit (90% LTV) has a rate of 6.15% and pays £5,000 cashback.

5 March 2025: Cheap Fixes Come With Restrictions Or High Fees

Barclays has slashed the cost of selected fixed rate mortgages by up to 0.48 percentage points. The latest move brings the lender’s lowest rate for purchase down to a market-leading 3.96%, writes Jo Thornhill.

However, the ‘Green Home’ mortgage deal is restricted to purchases of energy-efficient new-build homes bought directly from the builder or developer. It also requires a deposit of at least 40% and charges a £899 product fee.

In comparison, Barclays’ equivalent five-year fixed rate for general purchase – with the same deposit and fee – has been pegged down to 4.06% from 4.09%. 

The lender’s deepest reduction applies to its fee-free two-year fixed rate purchase deal at 90% loan to value (LTV) which has been cut from to 4.93% from 5.41%. 

Barclays has also increased its maximum loan amounts for buyers with only a 10% deposit. For houses, loans of up to £640,000 are available compared to the previous limit of £570,000. On the purchase of flats the maximum loan has been lifted to £310,000 from £275,000.

Five major lenders – Barclays, HSBC, Lloyds, Santander and Nationwide building society – now offer deals for new customers priced under 4%. But these deals come with either strict eligibility criteria or high fees. 

With the HSBC and Lloyds deals for example, borrowers need to be Premier banking customers or have a packaged bank account with the lender. 

And while Santander is offering two- and five-year fixed rates for purchase and remortgage at under 4%, the fees are £1,999 for purchases and £1,749 for remortgages.

David Hollingworth, associate director at mortgage broker L&C Mortgages, said: “It is good news to see some rates edging below the 4% mark.  Lenders are competing hard and taking any opportunity to pass on improved funding costs but these are often small tweaks and it doesn’t look to be signalling a collapse in rates.” 

What else is happening?

Here’s a round up of cuts made by other lenders also effective from today (5 March).

Halifax has cut rates by up to 0.14 percentage points on selected two-year fixed rates for buyers with small deposits of 5% or 10%. Among the new deals is a two-year fix priced at 4.87% with a £999 fee available up to 90% loan to value.

The lender, the UK’s largest, has also announced fixed rate cuts of up to 0.25 percentage points for remortgagers, and up to 0.31 percentage points for existing customers, both effective from tomorrow (7 March).

NatWest has increased the cost of selected fixed-rate residential deals, while reducing the cost of others (from 6 March). Among the rate cuts is a two-year fee-free deal for home purchase, which falls from 4.46% to 4.41% (60% LTV). A small number of deals are rising by up to 0.08 percentage points, including a five-year fix for purchase for those with a 10% deposit (90% LTV), which goes up from 4.67% to 4.74%. It has a £995 fee.

TSB has cut selected fixed rate deals for new and existing customers by up to 0.1 percentage points. Among its lowest rates is a 3.99% two-year fixed rate deal for existing customers looking for a new deal with the lender. Customers must have at least a 40% deposit and pay a £1,495 product fee.

Clydesdale Bank, a lending brand owned by Nationwide building society, has cut selected two and five-year fixed rates by up to 0.12 percentage points, and selected buy-to-let rates by up to 0.21 percentage points.

MPowered Mortgages has cut its two and three-year fixed rate deals for home purchase. Two-year deals now start from 4.29%, while the three-year rates start from 4.12%, these rates apply to 60% LTV borrowing and come with a £999 fee.

Skipton building society has cut the rate on its 100% loan to value Track Record mortgage for first-time buyers. The rate on the fee-free five-year deal has been lowered from 5.52% to 5.49%. Find out more about this deal on our first-time buyer hub page.

Virgin Money, the lending brand owned by Nationwide building society, has reduced selected fixed rate deals for residential and buy-to-let borrowers, effective 6 March. Among the cuts, the lender has cut the cost of its 10-year fixed rate deals by 0.68 percentage points with rates now starting from 4.89%.

Gen H has slashed fixed rates across its range by up to 0.14 percentage points for new customers and up to 0.3 percentage points for existing customers looking for a product transfer deal.

The specialist lender, which offers innovative deals to first-time buyers, including buying with friends or with a parental guarantee, is offering a five-year fixed rate at 5.36% with a £999 fee in exchange for a 20% deposit. Buyers will be required to use Gen H’s legal services to qualify for the deal.

Mortgage approvals

Net mortgage borrowing jumped by £900 million in January 2025, to £4.2 billion, according to the Bank of England Money and Credit report, published on Monday (3 March). 

Approvals for remortgage rose by 2,200 to 32,900, the number having fallen for the previous two months.

Approvals for home purchase  edged down by 300 in January however to a total of 66,200, compared to a rise of 400 in December 2024.

The next Bank of England decision on interest rates is scheduled for Thursday 20 March.

28 February 2025: Costs Edge Down As Swap Rates Fall

Nationwide building society has cut the cost of fixed rate deals by up to 0.25 percentage points from today, resulting in a five-year fix priced at 3.99%, writes Jo Thornhill. It means the lender is now one of five offering deals under the all-important 4% mark, joining the ranks of HSBC, First Direct, Barclays and Santander.

TSB, Virgin Money and The Mortgage Works – both lending brands owned by Nationwide – Coventry building society, and Principality building society have also all cut rates from today.

They follow a string of price reductions seen in the mortgage market over the past week in the wake of falling swap rates on which fixed rate deals are priced. Other lenders to have announced cuts earlier this month include Halifax and NatWest.

Mortgage broker Nick Mendes, said: “Fixed-rate mortgages are continuing to edge lower, mainly due to a notable drop in swap rates, particularly on two- and five-year terms. These have now fallen and remain stable at below 4%, marking a significant shift from last month.”

Here’s more detail on this week’s latest movements in the mortgage market:

Nationwide is offering a five-year fixed rate for existing customers looking to switch at 3.99% with a £999 fee. Borrowers require at least 40% equity in their property to be eligible (60% loan to value). The same deal for new remortgage customers carries a higher £1,499 fee.

Costs of equivalent two-year fixed rates have fallen to 4.09% with a £999 fee for existing customers, or a £1,499 fee for remortgagers. Both deals are available up to a 60% LTV.

Nationwide has also cut the cost of first-time buyer and homemover deals. It is offering a five-year rate of 4.74% for first-time buyers with a 10% deposit (90% LTV) with a fee of £999.

The lender’s five-year fix for new customers moving home with at least a 15% deposit is now priced at 4.39% with a £999 fee.

Virgin Money has cut the cost of selected residential fixed rate mortgage deals for home purchase by up to 0.1 percentage point. It is the lender’s second rate reduction in two weeks after it nudged down purchase rates by up to 0.07 percentage points on 18 February.

The lender is offering a two-year fixed rate for purchase for borrowers with at least a 10% deposit at 4.88% with a £995 fee (90% LTV), and a fee-free five-year fixed rate for purchase at 5.18% for borrowers with a 5% deposit (95% LTV).

Virgin has also cut selected one, two, three, and five-year fixed rates by up to 0.11 percentage points for existing residential customers with a 25% deposit looking to transfer their deal. 

Costs over five-years start from 4.12% up to 65% LTV. It has also cut selected buy-to-let fixed rates for purchase and remortgage by up to 0.1 percentage point.

TSB has cut selected fixed rates for buyers and remortgagers by up to 0.15 percentage points, and buy-to-let fixed rates by up to 0.1 percentage points. The bank’s two-year fixed rate for purchasers with a 10% deposit is now priced at 5.54%, with no fee.

Coventry building society has lowered selected residential and BTL deals across its range. Among the new rates is a two-year residential fixed rate at 4.38% with a £999 fee (75% LTV).

Principality building society has cut rates on selected fixed rates over two, three and five-years, as well as reducing rates across its cashback deals. It is offering a market-leading two year fixed rate for purchase and remortgage at 75% loan to value at 4.29% with a £1,499 fee. 

The Mortgage Works, the specialist lending arm of Nationwide building society, has cut product transfer rates for existing buy-to-let customers by up to 0.35 percentage points. 

It is offering a two-year standard BTL fixed rate at 3.59% with a 3% fee (available up to 65% LTV) and an equivalent deal with no fee at 4.89%. 

The five-year fixed rate for standard BTL borrowing is now priced at 3.94% with a 3% fee (also 65% LTV).

The number of buy-to-let mortgage products has hit a record high, according to financial data company Moneyfacts. The total number of deals available, including fixed and variable rates, is now at 3,560. This is the largest number since Moneyfacts began recording buy-to-let data in 2011.

7 January 2025: Biggest Reductions Apply To Low-Deposit Deals

First Direct has cut rates on more than 100 deals across its new business range by up to 0.3 percentage points, writes Jo Thornhill.

It follows cuts by Halifax and Leeds building society late last week (see stories below).

The direct-only lender, who doesn’t offer deals through mortgage brokers, said its biggest reductions applied to its two-year fixed rate remortgage deal for borrowers with at least 15% equity in their home (85% loan to value). The rate on this deal was cut to 5.04% from 5.34%. It comes with a £490 product fee.

First Direct’s lowest mortgage rate is a five-year fixed rate deal for home purchase priced at 4.13% with a £490 fee. It is available for those with at least a 40% cash deposit (60% LTV). Existing First Direct customers can secure the same deal at 4.10%.

For borrowers with a smaller deposit First Direct is offering a five-year home purchase rate of 4.74% (at 90% LTV), also with a £490 fee.

However, in contrast to other lenders cutting rates, Virgin Money has withdrawn selected deals and nudged up the rate on its five-year fixed rate for purchase for borrowers with a 15% deposit (85% LTV) from 4.43% to 4.46%.

Broker Nick Mendes at John Charcol said: “First Direct’s decision to reduce mortgage rates is a welcome move for borrowers. It reflects the competitive nature of the market and offers potential savings for first-time buyers, home movers, and those looking to remortgage.

“The substantial reductions in higher-LTV mortgages, such as the 5-Year Fixed Standard at 90% LTV, now priced at 4.74%, will be particularly beneficial for first-time buyers with smaller deposits.”

3 January 2025: Halifax Follows Leeds On Borrowing Costs

Halifax, the UK’s largest mortgage lender, has adopted a bullish start to 2025 by reducing the cost of selected remortgage deals by up to 0.35 percentage points, writes Jo Thornhill.

It follows cuts to fixed-rate deals for new and existing customers of up to 0.21 percentage points by Leeds building society.

Halifax has cut the cost of its 18-month and three-year fixed rates for remortgage. The 18-month deal, launched in November 2024, is reduced from 4.37% to 4.22% (at 60% loan to value) and from 4.62% to 4.39% (at 75% LTV). This deal has a £1,499 fee.

Halifax’s fee-free remortgage three-year fix at 60% LTV is down 0.01 percentage points to 4.41%, while the equivalent deal with a £999 product fee has been reduced by 0.05 percentage points to 4.18%.

The equivalent three-year remortgage deals at 80% LTV up to 90% LTV have been cut by between 0.04 percentage points and 0.11 percentage points. There are no rate cuts at 75% LTV. 

The bank is offering a three-year fix at 4.73% with a £999 fee at 80% LTV.

Among the new deals offered by Leeds building society is a two-year fix for purchase or remortgage at 4.15% (65% LTV) with a £1,499 fee.

The lender also has a five-year fixed-rate deal for home purchase, for borrowers with a 10% deposit (90% LTV), at 4.89% with no product fee.

Borrowing for home purchase and remortgages to a new lender both dipped in November 2024, compared to the previous month, according to the latest data released in the Bank of England’s Credit and Money Report. 

Mortgage approvals for house purchase fell by 2,400 to 65,700, while remortgage activity dropped by 300 to 31,200 in total.

But the Bank says both figures remain above the 12 month average – at 60,400 and 30,000 respectively.

Mark Harris, chief executive at mortgage broker SPF Private Clients, said: “Mortgage approvals for new purchases slipped, which comes as a surprise and suggests ups and downs for the market in coming months rather than a steady improvement. 

“Remortgaging numbers dipped very slightly, but this could mean more borrowers stuck with their existing mortgage providers rather than switching to a new lender.

“The effective interest rate paid on new mortgages decreased again to 4.5% as lower pricing at the time is reflected in the official figures. With a number of lenders cutting rates this week, this may dip further in coming months if others follow suit.”

12 December 2024: Lenders Announce Cuts To Fixed Rates

Santander, Halifax, Barclays, Virgin Money, TSB and Yorkshire building society are among lenders taking a knife to fixed rate mortgage deals this week as swap rates – the rate at which banks lend to each other in the wholesale markets – have edged downwards, writes Jo Thornhill.

Swap rates, which are a major influence on fixed rate mortgage pricing and therefore deals available to borrowers, had risen slightly following the Autumn Budget due to market fears over government borrowing and spending. But in recent days the rates have started to fall back prompting many major lenders to announce cuts.

Santander has reduced selected residential fixed rates across its purchase and remortgage deals by up to 0.23 percentage points. At the same time the bank’s deals for new build purchase have been cut by 0.16 percentage points and rates for larger loans (£250,000 or more) have been lowered by 0.1 percentage point. The lender’s buy-to-let deals have also been lowered in cost by up to 0.16 percentage points.

The bank has also announced it is adding £250 cashback on completion to all residential purchase mortgage deals at 85% loan to value or higher (where the borrower has a 15% deposit or less).  

Santander is now offering a two-year fixed rate for residential remortgage priced at 4.3% (60% loan to value) and an equivalent five-year remortgage deal at 4.17% (also 60% LTV). Both deals come with a £999 fee.

Halifax, the UK’s largest mortgage lender, has also confirmed it is cutting rates on two and five-year fixed rate deals for residential home purchase for borrowers with a 10% deposit (90% LTV), effective from tomorrow (13 December). Its five-year purchase deal at 90% LTV is now 4.74% with a £999 fee.

Barclays has lowered the rates on its five-year fixed rate residential purchase and remortgage products by up to 0.14 percentage points. The lender is offering a five-year purchase deal priced at 4.11% with an £899 fee, for buyers with at least a 40% cash deposit.

The bank is also offering a five-year fixed remortgage deal at 4.25% with a £999 fee for borrowers with at least 25% equity in their home (75% LTV).

Virgin Money is cutting the cost of selected residential purchase rates by up to 0.22 percentage points, including some shared ownership and Own New rates for first-time buyers. Its rates start from 4.37% for a two-year fixed rate at 65% LTV with a £995 fee. The five-year equivalent deal is at 4.24%.

TSB has cut fixed rates by up to 0.4 percentage points across its residential new business range and product transfer deals for existing customers. Among its changes, the bank has reduced three-year fixed rate purchase deals by up to 0.22 percentage points and five-year equivalent purchase deals by up to 0.15 percentage points.

The lender’s two-year fixed rates for purchase now start from 4.37% (at 60% LTV) with a £995 fee, with equivalent five-year purchase deals starting from 4.34% (also 60% LTV).

Yorkshire building society (YBS) has pegged down selected fixed rates across its range by up to 0.27 percentage points. Among its new offers is a two-year fixed rate for remortgage at 4.66% for borrowers with at least 25% equity in their home (75% LTV). There is a £495 fee and £250 cashback on completion.

Accord, the specialist lending brand owned by YBS, has cut selected residential and buy-to-let rates, by up to 0.1 percentage point. It follows cuts by the lender of up to 0.3 percentage points less than a week ago. Among its new deals Accord is offering a fee-free two-year fix for residential purchase at 5.09% at 75% LTV. The deal pays £500 cashback on completion.

Principality building society has cut selected mortgage rates, while increasing the cost of some deals. The mutual lender has reduced selected residential fixed rates over two, three and five-years, by up to 0.13 percentage points. 

However, its five-year fixed rate deals for borrowers with just 10% equity in their property have been increased by 0.05 percentage points.

5 December 2024: Yorkshire Cuts Rate On First-Time Buyer Deal

NatWest and HSBC are cutting the price of selected fixed-rate mortgage deals, suggesting competition is persisting in the run-up to Christmas, writes Jo Thornhill.

The moves follow rate reductions by Barclays last week (see stories below), 

Wholesale interest rates, which influence fixed mortgage rates, have stabilised after rising in the weeks following the Autumn Budget. Many lenders are now adjusting their mortgage pricing down, albeit with relatively modest rate reductions.

NatWest has cut selected residential and buy-to-let fixed rates effective from tomorrow (6 December). Its two-year residential deal for home purchase, for borrowers with at least 40% cash deposit (60% loan to value), is down from 4.37% to 4.32% with a £999 fee. 

The same deal for borrowers with at least 25% deposit is down from 4.59% to 4.49%.

HSBC has cut rates on selected residential and buy-to-let (BTL) deals. It is offering a five-year fixed-rate deal at 4.19% for remortgage (60% LTV) with a £999 fee. Its two-year equivalent deals now start from 4.44%.

Coventry building society has cut selected fixed rate deals, available through brokers, by up to 0.26 percentage points. The lender has also reduced rates on BTL deals by up to 0.25 percentage points. It is offering a fee-free two-year fixed rate for residential purchase for buyers with at least a 35% cash deposit

Accord, part of Yorkshire building society, has cut selected residential and BTL fixed rates, available through brokers, by up to 0.3 percentage points. The lender has cut the rate of a two-year fixed BTL purchase deal, for borrowers with a 20% cash deposit, from 5.89% to 5.54%. There is a £995 fee.  

Among its residential fixed rate changes, Accord has cut the rate on its flagship first-time buyer product, the £5k deposit mortgage, from 5.79% to 5.74%. This deal, which is fee-free, is available to customers through brokers and direct from Yorkshire building society.

Gen H has cut selected deals for first-time buyers by up to 0.25 percentage points including fixed rates at 90% and 95% LTV. It is offering a five-year fixed rate at 5.6% for borrowers with a 10% cash deposit. There is a £1,499 fee.

But high street lender TSB has pushed up the cost of its two and five-year fixed rates by up to 0.1 percentage points at higher loan to value ratios. Its first-time buyer five-year fixed rates at 90% loan to value now start from 4.94% with a £995 fee or at 5.04% with no fee.

Clydesdale Bank, part of Virgin Money, has also increased rates on selected residential mortgage deals for borrowers with up to a 10% deposit or equity (95% LTV and 90% LTV). Its fee-free five-year purchase rate at 95% LTV has risen by 0.3 percentage points to 5.54%, while the equivalent deal with a £999 product fee rises 0.1 percentage points to 5.29%.

Nick Mendes at broker John Charcol said: “Rate cuts by NatWest and HSBC reflect a broader trend among lenders capitalising on a period of stability in [wholesale] ‘swap’ rates following a month of volatility. This volatility was driven by market adjustments to future base rate expectations in light of inflationary pressures highlighted after the Budget. 

“Earlier this year, markets had priced in a reduction in the Bank of England Bank Rate beginning in February, with a total of five cuts in 2025. However, this has now moderated to expectations of three to four cuts at most.

“As markets settled lenders such as HSBC, Barclays and NatWest have been quick to reprice and ensure any last opportunities to win business in 2024 are taken before demand typically slows for the festive season.”

29 November 2024: Halifax launches 18-Month Fixed-Rate Deals

Santander has increased the cost of selected fixed-rate deals for purchase and remortgage by up to 0.18 percentage points, while Barclays has cut a range of its fixed rates, writes Jo Thornhill.

There remains a mixed picture on rates, with some lenders reducing rates as they vie for new business before the year end, and others pushing up costs, typically where they have offered best buys and are looking to limit demand.

Santander has been offering two and five-year fixed deals at market leading rates. Its latest rate increase (effective from 28 November) is likely to be a way to manage its business levels.

It has also increased new-build fixed rates, plus selected buy-to-let fixed rates by up to 0.13 percentage points. 

Its product transfer deals, for existing customers looking to switch to a new fixed rate with the bank, are also tweaked upwards by 0.09 percentage points across residential deals and by 0.04 percentage points on its buy-to-let switcher range. 

Santander is also set to launch a new range of two-year residential purchase fixed rates for borrowers buying property worth up to £250,000.

The bank’s standard two-year residential remortgage rates now start from 4.3% with a £999 fee (at 60% loan to value), and the equivalent five-year rate is at 4.29%, also with a £999 fee.

MPowered Mortgages is cutting three-year fixed-rate deals for residential purchase and remortgage by up to 0.12 percentage points, effective from 5.30pm today (29 November). It follows cuts by the lender to two and three-year rates of up to 0.28 percentage points just two weeks ago, bucking the trend of other lenders who have been increasing rates.

The lender is offering a three-year fix for purchase at 4.09% with a £999 fee, for borrowers with at least 40% deposit (60% LTV), with an equivalent fee-free deal at 4.27%.

Barclays has cut selected residential fixed rates for purchase and remortgage by up to 0.2 percentage points. Its five-year remortgage deal for borrowers with 40% equity (60% loan to value) is cut to 4.17%, from 4.37%. This deal has a £999 fee.

The bank’s fee-free two-year fixed rate for purchase for borrowers with a 10% cash deposit (90% LTV) has fallen from 5.49% to 5.39%. While its two-year purchase deal at 75% LTV has dropped to 4.36% with an £899 fee.

Swap rates, the rates at which banks lend to each other and which influence fixed-rate mortgage pricing, have dropped slightly in recent days, having risen in the immediate aftermath of the Autumn Budget.

Nick Mendes at broker John Charcol said: “Barclays has made a bold move as the first high street lender to cut mortgage rates in response to recent market changes. 

“With swap rates easing over the past couple of days, it’s great to see a lender acting quickly to reflect the slightly improving conditions. This could also signal the potential for more repricing across the market if conditions remain stable.”

TSB has made a range of rate changes across its residential and BTL products, including increasing rates by 0.15 percentage points on its five-year fixed rates for first-time buyers and movers at 90% and 95% LTV. 

But at the same time the bank has cut two and five-year buy-to-let fixed rates by up to 0.1 percentage points, for landlords with at least 40% equity (60% LTV). Selected product transfer rates for residential borrowers will also fall by up to 0.15 percentage points.

Clydesdale Bank, part of Virgin Money group, is increasing selected residential fixed rate mortgage deals by up to 0.3 percentage points from Monday (2 December). The rate rises will apply to core residential two- and five-year fixed rates at 90% and 95% LTV, including product transfer deals for existing customers looking to switch. The bank’s two-year fixed rates for buy-to-let at LTVs of between 60% and 75% will also increase by 0.1 percentage points.

Halifax has launched a selection of fixed-rate remortgage deals with an 18-month term, to offer greater flexibility to borrowers. Rates start from 4.37% for borrowers with at least 40% equity in their property. While a homeowner with 20% equity could secure a rate at 5.04%, for example. All deals have a £1,499 product fee.

Amanda Bryden, head of mortgages at Halifax Intermediaries, said: “Brokers have told us that their clients are keen to see more shorter-term products. With this latest launch, we’re delivering the certainty of fixed payments balanced with a term that offers more flexibility.”

21 November 2024: Mortgage Rates Unlikely To Fall In Short Term

NatWest Bank has nudged up the cost of selected fixed rate deals by 0.1 percentage points for new residential borrowers, effective from tomorrow (22 November), writes Jo Thornhill.

It follows similar increases to fixed rates this week by Virgin Money and Clydesdale Bank, a lending brand in the Virgin Money group.

NatWest’s rate increases affect its two and five-year fixed rate deals, including first-time buyer rates, shared equity, Help to Buy and green mortgage products up to 85% loan to value (LTV).

The bank’s two-year fixed rate for purchase for borrowers with a 40% cash deposit (60% LTV) has been hiked from 4.22% to 4.32% with a £1,495 fee. Costs on the equivalent deal, with a lower £995 fee, rise from 4.37% to 4.59%. 

The lender’s five-year fixed rate for purchase (also at 60% LTV) has risen from 4.19% to 4.29% with a £995 fee.

Virgin Money has increased the cost of selected two and five-year fixed rate deals at 85% LTV and 90% LTV by up to 0.15 percentage points, also effective from tomorrow (22 November). A number of its first-time buyer deals, including its Own New scheme and shared ownership mortgage deals will rise in cost.

Clydesdale Bank has increased selected residential fixed rates by up to 0.29 percentage points, while selected buy-to-let deals have gone up by 0.3 percentage points. 

The rate rise affects two and five-year residential fixed rates, available through brokers, for borrowers with 15% deposit or equity or less – plus larger loans and fixed rates for newly qualified professionals (part of Clydesdale’s Professional mortgage range).

The news on Wednesday this week that inflation jumped in October to 2.3% (up from 1.7% in September) has prompted a number of lenders to reverse the trend of cutting fixed mortgage rates. 

The last of the sub-4% five-year fixed rates (for borrowers with at least 40% deposit or equity) were pulled from the shelves at the end of last week. 

And the average two year rate is now at 5.53%, while the average five-year rate is at 5.26%, according to Moneyfacts. This represents a 0.11 percentage point and 0.13 percentage point increase respectively, compared to where average rates were just two weeks ago (at 5.42% and 5.13% respectively).

Nick Mendes, broker at John Charcol, commented: “Following the inflation data this week, I’d expect fixed mortgage rates to continue rising as markets adjust their forecasts on interest rates. Lenders will likely adopt a cautious stance, mirroring the broader market sentiment.”

Mr Mendes added that price competition is unlikely to be a priority for lenders as the festive period gets underway.

13 November 2024: NatWest and Barclays Raise Costs

NatWest and Barclays have both made substantial increases to the cost of fixed rate mortgage borrowing as they look to control business volumes, writes Jo Thornhill.

Barclays has increased residential and buy-to-let fixed rates by as much as 0.56 percentage points, while NatWest has hiked rates by up to 0.35 percentage points. Both lender increases are effective from tomorrow (14 November).

The moves by Barclays and NatWest follow similar increases by a swathe of major lenders in recent days including HSBC, Nationwide building society, Santander, TSB and Virgin Money (see stories below).

Rising swap rates, the interest rates at which banks use to lend to each other and which influence fixed mortgage rates for borrowers, have been rising since the Budget on 30 October, due to fears over government spending.

Markets now believe that interest rates may not fall as quickly as had previously been predicted. This is despite the Bank of England cutting its benchmark Bank Rate from 5% to 4.75% earlier this month.

The recent fixed rate rises by other lenders had left Barclays and NatWest in the best-buy position for a number of mortgage deals which has likely led to a flood of applications from borrowers. 

Brokers say today’s rate increases by both high street lenders are likely due to these banks looking to control their business volumes in uncertain market conditions.

NatWest has increased the rate on its best-buy five-year fixed rate deal for residential purchase from 3.84% to 4.14%, for borrowers with at least 40% equity in their home (60% loan to value). There is a £1,495 fee.

The same five-year deal with a lower £995 fee goes up from 3.89% to 4.29%, while the fee-free option has risen from 3.99% to 4.29%. 

The lender’s five-year deal for home purchase at 75% LTV with no fee will be increased from 4.09% to 4.44%. 

Barclays has increased the cost of its best-buy two-year fixed rate for home purchase from 3.99% to 4.33%. The deal, which requires buyers to have a 40% cash deposit (60% loan to value), has an £899 fee.

The lender’s two-year fixed rate for remortgage at 4.03%, which was also a best-buy at 60% LTV, is increased to 4.37%. There is a £999 fee.

Barclays two-year fixed rate for residential purchase for large loans has gone up by 0.56 percentage points from 4.38% to 4.94%. This is for buyers with at least 15% cash deposit (85% LTV) and there is a £1,999 product fee. 

Nick Mendes at broker John Charcol commented: “Both NatWest and Barclays’ rate adjustments reflect the broader trend of rising costs in the lending market, influenced by ongoing economic pressures and changes in the interest rate environment.”

TSB is increasing selected fixed rate deals effective from 15 November. Its three-year fixed rate deals for residential purchase and remortgage are increased by 0.2 percentage points, while its shared ownership and shared equity deals rise by up to 0.3 percentage points. Selected two and five-year buy-to-let fixed rates rise by up to 0.3 percentage points. The bank’s product transfer deals for existing borrowers have also been increased by up to 0.1 percentage points.

Virgin Money has increased the cost of a range of its residential purchase deals, available through brokers, by up to 0.2 percentage points, effective from 15 November. It is the bank’s third increase this month. Among the rate rises its two- and five-year purchase deals at 85% LTV have increased in cost, with five-year rates starting at 4.59% with a £999 fee.

12 November 2024: HSBC, Nationwide, Virgin Hikes Fixed Rates

A number of major lenders are increasing the cost of fixed rate mortgage deals, following a similar move by Santander (see stories below), as competitive deals are causing a rush of business, writes Jo Thornhill.

HSBC is nudging up the cost of a wide range of residential and buy-to-let fixed rates, available direct and through brokers, effective from tomorrow (13 November).

Rates will rise on selected two and five-year purchase and remortgage residential deals, as well as two, three, five and 10-year fixed rates on product transfer deals (these are rates available to existing customers looking for a new rate).

Nationwide building society is increasing selected fixed rates while reducing rates on other deals. Full details will not be unveiled until tomorrow (13 November), but the mutual lender has confirmed that offers for new customers, as well as existing customers looking to transfer their deal or increase their borrowing, will be affected.

Virgin Money has also announced it is increasing selected fixed rate deals for residential purchase and remortgage by up to 0.2 percentage points from tomorrow (13 November) in its second rate hike this month. It is also increasing some buy-to-let fixed rates, by up to 0.2 percentage points, while selected product transfer deals for existing borrowers will rise by up to 0.25 percentage points.

TSB has increased rates by up to 0.3 percentage points across selected two- and five-year fixed rate residential purchase and remortgage deals, for first-time buyers and homemovers. At the same time it has hiked selected five-year fixed rate product transfer deals by up to 0.2 percentage points.

Broker Nick Mendes at John Charcol says HSBC has been offering close to market-leading deals and that its latest repricing is probably due to the bank looking to control application levels and service standards.

He said: “Other lenders have not been offering such low rates. This has led to an influx of applications for deals with HSBC and other market leaders. This can often stretch service levels, prompting rapid rate changes to manage demand.”

David Hollingworth at broker L&C Mortgages commented yesterday: “Markets are now anticipating that rates may need to remain a little higher for longer and that has pushed up costs for lenders, which has forced fixed rates up. Many lenders have already made increases and those are likely to continue as the market finds its level.”

But while some lenders are pushing up fixed rates, other lenders are taking the opportunity to cut rates and grab greater market share. MPowered Mortgages has slashed the cost of its two and three-year residential mortgage rates by up to 0.28 percentage points.

The lender is offering a two-year fixed rate deal for home purchase at 4.21% for those with at least a 40% cash deposit (60% LTV) with a £999 fee. Three-year equivalent fixed rates start at 4.19% (60% LTV).

11 November 2024: Santander Hikes Fixed Rates

Santander has hiked the cost of a wide range of its fixed rate mortgage deals despite the Bank of England cutting interest rates by 0.25 percentage points last week, writes Jo Thornhill.

The high street bank has notified mortgage brokers it will raise selected residential fixed rates by up to 0.29 percentage points, and the cost of some buy-to-let (BTL) fixed rates by up to 0.31 percentage points.

Santander’s new rates and deals will be unveiled and available online, direct and through brokers, from tomorrow morning (12 November). 

The rises will affect new borrowers as well as existing customers coming to the end of their deal and looking for a new rate with the lender.

It follows rate increases by a number of lenders in recent days including HBSC, TSB, and Virgin Money (see stories below).

Santander has offered a number of market-leading fixed rates in recent weeks, including the lowest two-year fixed rate for purchase at 3.96% with a £999 fee, for borrowers with at least a 40% cash deposit (60% loan to value). 

Its equivalent deal for borrowers with a 25% deposit (75% LTV) at 4.09% is also currently among the market leaders. Both deals are expected to rise from tomorrow.

Nick Mendes at broker John Charcol said that today’s move from Santander was to control business volumes arising from these highly competitive deals: “Santander had recently reduced its rates and had already priced in the latest Bank Rate reduction, while other lenders, such as Halifax, were increasing costs.

“Santander has no doubt seen a surge in applications from clients looking to secure current rates, putting pressure on its service levels.”

David Hollingworth at broker L&C Mortgages said: “Markets are now anticipating that rates may need to remain a little higher for longer and that has pushed up costs for lenders, which has forced fixed rates up.

“Last week’s Bank Rate cut had been expected so was already factored into fixed rates but the forecast has shifted in recent weeks as the potential impact of the Budget on inflation has fed through. Many lenders have already made increases and those are likely to continue as the market finds its level.”

The choice of mortgages for borrowers has slipped significantly this month, from 6,645 in October to 6, 405 in November, according to Moneyfacts. 

It is the biggest monthly fall since July 2023. The average shelf-life of a mortgage deal also fell from 21 days last month, to 17 days in November. 

6 November 2024: Virgin Money Hikes Fixed Rates

Virgin Money, part of Nationwide, has increased selected fixed rate mortgage deals on the eve of the next interest rate decision by the Bank of England’s influential Monetary Policy Committee, writes Jo Thornhill.

TSB has also increased the cost of selected fixed rate deals, while cutting the cost of borrowing for other customers.

Market experts are predicting the central bank will cut its benchmark Bank Rate from 5% to 4.75% when the MPC meets tomorrow following a sharp fall in inflation last month to 1.7%, from 2.2%.

But despite the expectations around Bank Rate, a number of mortgage lenders have been repricing their fixed rates upwards in recent days and weeks. 

Brokers say much of this activity is largely about lenders controlling their business volumes and adjusting to swap rates (interest rates used by banks in the wholesale markets), which have ticked up slightly since the Budget on 30 October.

Virgin Money has increased selected residential purchase and remortgage rates, buy-to-let deals and product transfer rates (for existing borrowers) by up to 0.2 percentage points, effective from 8pm today (6 October).

The bank is increasing selected residential purchase fixed rates from 70% loan to value (LTV) up to 95% LTV, as well as a number of fixed remortgage rate deals from 75% LTV up to 90% LTV.

Its product transfer deals will increase by up to 0.1 percentage points, with five-year fixed rates now starting from 3.99% (60% LTV).

At the same time Clydesdale Bank, which is the lending brand owned by Virgin Money, has increased selected purchase fixed rates by up to 0.32 percentage points. Its two and five-year remortgage fixed rates at 75% LTV will be increased by up to 0.20%. Deals are available exclusively through brokers.

TSB has increased its five-year fixed rate deals for residential purchase at 60% LTV by 0.1 percentage points from tomorrow (7 November). 

But the bank has also cut selected two- and five-year fixed rates for first-time buyers and homemovers (for those with at least a 10% cash deposit), as well as its two-year fixed rate remortgage deals at between 60% LTV and 80% LTV, by 0.15 percentage points.

4 November 2024: Rate Cut Still Widely Expected On Thursday

HSBC has increased the cost of a wide range of its fixed rate deals for new and existing customers, writes Jo Thornhill. It follows a string of other major lenders to make hikes and other adjustments after last week’s Budget announcement. 

Among HSBC’s rate rises, effective from tomorrow (5 November), it is increasing selected residential purchase and remortgage rates, including deals for first-time buyers – plus product transfer deals available to existing borrowers.

However, a small number of rates have also been cut by the high street bank, including its two-year fixed deals for purchasers with deposits of between 10% and 25%. Its two-year product transfer deals available at a 40% deposit have also been cut.

David Hollingworth at mortgage broker London & Country Mortgages said: “The expectation appears to be that interest rates may have to remain a little higher for longer than previously anticipated. This is pushing up costs for lenders.

“That volatility has initially been most evident in rate withdrawals from smaller and more specialist lenders but is now feeding through to bigger, mainstream lenders.”

Swap rates have settled in recent days, although they are higher than prior to last week’s Budget on 30 October. Swap rates are the interest rates banks use to lend to each other in the wholesale markets, but which influence fixed mortgage rates for consumers.

Latest lender movements

Recent rate changes across the market reflect a mixed picture, with both increases and cuts being made by lenders as they reposition themselves to control business volumes and improve margins.

Halifax and Coventry building society have both increased selected fixed rates in recent days, increasing costs for buyers and remortgage borrowers. 

However, Santander has cut selected rates by up to 0.36 percentage points.

Halifax has increased selected purchase and home mover deals, but it also cut several rates at the same time. Coventry will increase fixed rates across its residential and buy-to-let ranges from tomorrow (5 November).

But lenders and mortgage brokers still widely expect the Bank of England’s monetary policy committee (MPC) to cut interest rates when it next meets this Thursday (7 November). The benchmark Bank Rate is currently at 5%.

Mortgage broker Nick Mendes at John Charcol said: “I’m still pretty certain there will be a rate cut by the Bank of England on Thursday. But it will be interesting to see the voting behaviour of the members of the Monetary Policy Committee, and also to read the notes following the meeting. 

“If there are any concerns expressed about the recent Budget for example, then this could have a negative effect on the markets, which could put upward pressure on mortgage rates.”

31 October 2024: Santander, Clydesdale, Leeds Change Rates

Mortgage rates are moving in both directions in the wake of Wednesday’s Budget as lenders digest the tax-raising measures, increased government borrowing and ambitious programme of capital investment it contained, writes Kevin Pratt.

Santander, for example, is trimming selected rates by up to 36 percentage points. This comes on the heels of yesterday’s announcement from Virgin Money, part of Nationwide building society, that it was raising certain residential and buy-to-let fixed rates by up to 0.15 percentage points (see story below).

Clydesdale Bank, however, which is part of Virgin Money, is cutting some product transfer rates by 20 percentage points, and Leeds building society is launching a raft of fixed-rate deals and cutting rates on some loans for borrowers with a 25% deposit.

Lenders are mulling what action the Bank of England might take on interest rates. It meets next week (7 November) and on 20 December to determine the level of the Bank Rate, which currently stands at 5%.

Laith Khalaf, head of analysis at investment platform AJ Bell, said: “The fiscal loosening announced by the Chancellor has prompted markets to pretty much rule out two interest rate cuts this year. 

“Previously, market expectations were for the base rate to fall to 4.5% [in two 0.25% steps] by the end of this year, and then to under 4% by the middle of 2025. But the inflationary nature of the measures announced in the Budget are forecast by the Office for Budget Responsibility to add 0.4% to inflation in the next tax year, thereby putting pressure on the Bank of England to keep rates at higher levels for longer.”

Khalaf said markets are still pricing-in a 0.25 percentage points rate cut from the Bank in November, but they do not expect a further cut before Christmas: “We can expect some impact from higher rate expectations in the mortgage and savings market. We might start to see mortgages creeping up again, just when borrowers thought we were on a firmly downward path. 

“On the other side of the ledger, savings rates can be expected to get a boost from the Budget and the adjustment to interest rate expectations. Higher cash rates aren’t exactly going to fund an early retirement, but savers can probably sit on their coffers a bit more comfortably, for a while at least.”

30 October 2024: Virgin Raises Cost Of Two and Five-Year Deals

Virgin Money has increased the cost of selected residential and buy-to-let fixed rates by up to 0.15 percentage points.

The move comes before next week’s Bank of England decision on interest rates (due 7 November), and follows a number of other lenders who have pushed rates up in recent days, including Halifax and TSB (see stories below).

Virgin has increased selected two and five-year fixed rates for home purchase, including deals under the Own New scheme, for the purchase of new build properties. It has also raised rates on selected two and five-year remortgage deals for borrowers with at least 25% equity in their property (75% LTV).

Its five-year fixed rate for remortgage will now start from 4.12% (65% LTV) with a £999 fee.

The new rates and deals, available through brokers, will be effective from 8pm today (30 October).

The bank has also increased selected buy-to-let fixed rates at 60% and 75% loan to value. Five-year fixed-rate deals will now start from 3.88%.

Selected two, three and five-year fixed rates for product transfer (deals for existing Virgin customers looking to switch) have also increased by up to 0.16 percentage points. Among the new deals the bank is offering a fee-free two-year fixed rate at 4.75% (75% LTV).

29 October 2024: TSB Increases Selected Rates Ahead Of Budget

TSB has increased the cost of selected residential and buy-to-let mortgage rates the day before Rachel Reeves delivers her first Budget to the House of Commons, writes Jo Thornhill.

Uncertainty around the changes the Chancellor might announce is causing jitters in financial markets, which has resulted in a rise in the wholesale rates used by lenders when setting their mortgage fixed rates.

TSB is increasing its short-term residential fixed rates, available through brokers, effective from tomorrow (30 October). 

It has hiked the cost of two-year purchase deals for borrowers with between a 10% and a 25% cash deposit (75% up to 90% loan to value) by up to 0.1 percentage points. Its two-year fixed rates for remortgage at 60% LTV are up by 0.25 percentage points. 

The bank currently offers a two-year deal for remortgage at 4.09% with a £1,495 fee, or at 4.19% with a £999 fee (at 60% LTV). The new rates and deals will be live on the bank’s website from tomorrow.

TSB is also increasing the cost of two and five-year fixed rate deals for buy-to-let borrowers by up to 0.1 percentage points. This will only affect deals for landlords with at least 25% deposit or equity in their property.

The latest data from the Bank of England on consumer credit and borrowing reveal that net approvals for mortgages for house purchase increased by 700 in September to 65,600. This is the highest level since August 2022, when the number hit 72,000.

Approvals for remortgage last month also rose, according to the Bank. The numbers were up to 30,800 in September, an increase of 3,100 compared to August.

Gareth Lewis, managing director of specialist lender MT Finance, says: “There is some positivity with net mortgage approvals at their highest since August 2022, showing there is consumer confidence from a purchase perspective. But we need this to continue for a period of time.

“Tomorrow’s Budget is hanging over everyone. When you talk to mortgage brokers, there is a sense of uncertainty among clients and people holding fire until we have some clarity. If we end up with a softer Budget than was expected just a month ago, combined with the expected reduction in interest rates, that will encourage people to go out and transact.”

28 October 2024: Market Erratic Ahead Of Budget

Barclays has slashed the cost of fixed rate residential borrowing by as much as 0.26 percentage points on selected deals, less than two weeks after it pushed rates up in volatile market conditions, writes Jo Thornhill.

Barclays said that the new rates, on deals available direct and through brokers, will be effective from tomorrow (29 October).

The bank’s two-year fix for purchase for borrowers with at least a 40% cash deposit (60% loan to value) has been cut to 3.99% (from 4.1%). It charges an £899 fee. The equivalent deal for purchase for borrowers with a 25% cash deposit (75% LTV) is now priced at 4.12%, down from 4.29%.

Barclays remortgage deals will now start at 4.03% for a two-year fixed rate (60% LTV) or at 4.28% (75% LTV) both with a £999 fee.

The bank has also cut selected 10-year fixed rates for purchase and remortgage. It is offering a deal at 4.85% over 10 years with a £999 fee in exchange for a 40% deposit.

A range of product transfer deals, for existing Barclays customers looking for a new fixed rate, have also been reduced. Its two-year deal at 75% LTV is now priced at 4.28%, while its 10-year rate at 75% LTV is priced 4.85%. Both deals charge a £999 fee.

The deal cut by the full 0.26% is the lender’s fee-free 2-year fix priced at 4.59% at a 75% LTV, which will fall to 4.33%.

MPowered Mortgages has cut selected two-year fixed rate deals, available through brokers, by up to 0.3 percentage points, effective from 5.30pm today (28 October).

The lender’s lowest two-year rate for home purchase falls to 4.11% (60% LTV) with a fee of £999, while the lowest two-year remortgage rate will fall to 4.29% (also at 60% LTV) with a £999 fee.

24 October 2024: NatWest Cuts Rates To Resurrect Sub-4% Deals

NatWest Bank has slashed selected residential fixed rates by up to 0.41 percentage points, bringing back sub-4% five-year fixed-rate deals, writes Jo Thornhill.

The bank increased its fixed rates last week, including raising its five-year deal for home purchase for buyers with at least a 40% cash deposit (60% loan-to-value) from 3.79% to 4.09%, crossing the critical 4% threshold.

But following its latest rate cut, effective immediately, NatWest is now offering the same five-year fix for purchase at 3.84% with a £1,495 fee. It also has an equivalent two-year deal at 3.99%.

The market-leading deals for home purchase are currently on offer from Halifax at 3.77% with a £999 fee over five years, and at 3.94% with a £999 fee over two years, with Nationwide building society. Both these deals are at 60% LTV.

NatWest’s biggest reduction, of 0.41 percentage points, is on its two-year fixed-rate purchase deal at 75% LTV with a £995 fee, which falls to 4.19%. 

The fixed rate mortgage market has been volatile in recent weeks, with some lenders pushing up the cost of borrowing (see stories below), as inter-bank ‘swap’ interest rates ticked up due to uncertainty around potential tax increases in the Budget on 30 October. 

Swap rates are a major factor in the pricing of fixed borrowing rates for mortgage customers.

Other lenders are cutting rates as competition remains hot. For example, MPowered Mortgages has cut selected three-year fixed rate deals by up to 0.3 percentage points with immediate effect. 

The new rates, available through brokers, include a purchase deal at 3.93% with a £999 fee (60% LTV). The equivalent three-year remortgage rates now start from 4.08%.

But Halifax for Intermediaries is increasing the cost of selected five-year fixed rate deals for home purchase from tomorrow (25 October). The lender is currently offering best-buy rates for purchase over five-years at 3.77% (60% LTV) and 3.87% (75% LTV), both with a £999 fee. But the bank’s 0.08 percentage point hike will lift it out of the market-leading rates, most likely as it looks to control its business volumes.

Clydesdale Bank, part of Virgin Money, has also increased selected residential fixed rates by up to 0.25 percentage points, and selected buy-to-let deals by up to 0.1 percentage point. It is offering a residential two-year broker-exclusive deal for remortgage at 4.42% with a £1,999 fee (65% LTV) and an equivalent five-year deal at 4.14%.

21 October 2024: Volatility Reflects Lender Uncertainty

HSBC is hiking a range of its residential purchase and remortgage rates, available direct and through brokers, from tomorrow (22 October), writes Jo Thornhill

The move follows rate increases in recent days from Halifax, Santander, Barclays and NatWest (see stories below).

This market volatility is due to uncertainty around potential tax increases and government spending to be announced in the Budget on 30 October, is causing market volatility. Swaps – the rates at which banks lend to each other – have jumped up over the past week.

Lenders also increase rates when they want to reduce demand in order to maintain service standards.

Among its rate increases, HSBC will raise the cost of its two- and five-year fixed rates for residential purchase and remortgage for borrowers with a 40% cash deposit (60% LTV). This includes its current market-leading five-year fixed rate for remortgage at 3.83% with a £999 fee (60% LTV).

At the same time, selected deals at higher loan-to-value ratios will be reduced. Full details and the new rates and offers will be unveiled by HSBC tomorrow.

Nick Mendes at broker John Charcol said: “HSBC’s latest rate changes reflect a strategic and varied approach, with a mix of increases and decreases. 

“The reductions in its two-year fixed standard products at 80% and 85% LTV suggest a focus on making mid-tier borrowing more attractive, particularly for homeowners looking to remortgage. However, the increases in lower LTV products, especially at 60%, point to a more cautious response to recent market volatility and rising funding costs.”

Virgin Money is increasing selected residential and buy-to-let fixed rates by up to 0.1 percentage points also from tomorrow (22 October). Among the increases is its residential Fix and Switch remortgage fixed rate, available exclusively through brokers, which rises by 0.09 percentage points to 4.74%. The deal is fee free and requires 25% equity in the property (75% LTV).

Fix and Switch is a five-year fixed rate product with the option to switch away penalty-free after two years.

Virgin’s two-year BTL fixed rate deal for landlords with at least 40% equity is increased by 0.1 percentage points to 4.29%. It charges a £2,195 fee.

The bank’s product transfer deals have also been hiked by up to 0.1 percentage point, with five-year deals now starting from 3.89% (65% LTV) with a £1,495 fee.

Virgin has also launched a fee-free one-year fixed rate deal for existing customers (product transfer), with rates starting at 5.04% (65% LTV).

John Charcol’s Nick Mendes added: “While these repricing changes signal short-term market volatility, they don’t necessarily indicate a long-term trend. In the broader economic context, falling inflation has strengthened the Bank of England’s position to consider rate cuts in November and possibly December. 

“However, the market remains sensitive to changes in the economic outlook, with attention focused on next week’s Budget for further direction.”

17 October 2024: Moves To Control New Business Volumes

Halifax for Intermediaries and Barclays Bank are both increasing their fixed mortgage rates from tomorrow (18 October), writes Jo Thornhill. 

The rate changes come just a day after government data showed the annual rate of inflation had fallen to 1.7%, which presents a stronger case for the Bank of England’s Monetary Policy Committee (MPC) to cut interest rates when it next meets on 7 November.

But uncertainty around potential tax increases and government spending, which will be announced in the Budget on 30 October, is causing market volatility. Swap rates, which are the rates at which banks lend to each other and which help determine fixed mortgage costs, have jumped up in recent days.

This has also prompted other lenders, including Santander and NatWest, to reprice their mortgage deals higher (see stories below).

Barclays is currently at the top of the best buy tables across a number of loan-to-value sectors. Experts believe today’s hike is likely a move to control business volumes and maintain service standards, as much as changes in swap rates.

Among the increases, Barclays has pushed up the rate on its best buy five-year fixed rate for home purchase for borrowers with a 25% cash deposit (75% loan to value) from 3.85% to 4.05%. The equivalent five-year fixed rate deal at 60% LTV rises from 3.76% to 3.96%. Both deals charge a £899 fee.

Barclays two-year fixed rate for remortgage (at 60% LTV), a current best buy, is set to rise from 3.99% to 4.19% with a £999 fee.

Halifax is increasing its two- and five-year residential remortgage fixed rates by up to 0.24 percentage points. Its new rates and deals will be unveiled on its website tomorrow.

Nick Mendes at broker John Charcol said: “Halifax and Barclays rate increases are most likely down to managing business and service levels rather than swap rate movement. 

“With Santander and NatWest recently repricing, this has pushed Halifax and Barclays further up the rankings, resulting in an increase in applications.

“Lenders have done well to hold out and not react quickly to recent swap rate increases, but the recent repricing from competitors has put some lenders in a difficult position.

“These recent price adjustments are a minor setback, effectively bringing rates back to where they were four to six weeks ago, rather than signalling drastic changes.”

He added: “The market reacted favourably to yesterday’s inflation data, but I don’t expect many lenders to cut their rates quickly. Instead, they will likely wait for the upcoming Budget to pass before assessing their fixed rates.”

15 October 2024: NatWest Increases Cost Of Borrowing

NatWest Bank is the latest major lender to raise the cost of borrowing by increasing selected fixed rates by up to 0.3 percentage points.

It follows similar increases by Santander, Coventry building society and Co-operative Bank last week.

Swaps – the rates at which banks lend to each other that influence mortgage rates for customers – have been steadily rising in recent days. This has caused more lenders to reprice their fixed deals, particularly those at the most competitive end of the market.

The rise in swap rates is being driven by concerns over potential increases in government borrowing.

Among NatWest’s increases, it has hiked its five-year fixed mortgage for purchase at 60% loan-to-value from 3.79% to 4.09%, crossing the critical 4% threshold.

Its two-year fixed-rate purchase deal (also at 60% LTV) has increased from 4.07% to 4.37%, while its two-year deal at 90% LTV is up from 5.10% to 5.4%.

Nick Mendes at broker John Charcol said: “These increases mark a sharp reversal from recent months when rates have been falling. But it’s important to note that this does not necessarily signal the long-term direction of mortgage rates over the next 12 months.”

Skipton building society has launched a second 100% loan-to-value mortgage deal for first-time buyers, which pays £1,000 cashback on completion.

The mutual lender has offered a 100% mortgage loan, known as Track Record, since May 2023 as a way of helping cash-strapped first-time buyers on to the property ladder. Skipton’s new £1,000 cashback deal is also a Track Record product.

The Track Record deal is a five-year fixed rate with no product fee and it does not require a guarantor. But it is only available to first-time buyers who have not owned a property in the last three years. 

While the standard Track Record product has a rate of 5.29%, the new cashback Track Record deal has a rate of 5.44%.

Borrowers must be 21 or over and be able to show evidence of paying monthly rent for at least 12 consecutive months in the past 18 months to be eligible for a Track Record 100% LTV mortgage.

First-time buyers can take a loan of up to £600,000 with Track Record, although the actual loan amount will be based on Skipton’s strict affordability criteria, typically based on the monthly rent the applicant has been paying.

Skipton’s cashback Track Record product launch follows a month when the mutual saw its highest monthly applications for its 100% LTV deal for the year. The lender says it processed £9.6 million-worth of applications in September, taking the total value of applications since launch (in 2023) to over £130 million.

TSB has launched a one-year fixed rate deal for existing customers who are coming to the end of a fixed rate deal but who want certainty of rate while maintaining flexibility. 

The bank’s one-year residential product transfer deal has no fee and a rate of 5.95%. It is available for customers with at least 25% equity in their home. 

One-year fixed rates are rare in the market, with only a couple of specialist lenders offering this type of deal. 

Brokers say it could suit borrowers who are looking to move in the short term but who don’t want to pay SVR (standard variable rate), for example.

First-time buyers and homemovers pinning their hopes on a further interest rate cut in November got a boost today as wage inflation has dropped, meaning average salaries are not rising as quickly. 

If the Bank of England believes wage inflation is falling and the economy could be slowing to a greater extent than it would like, it is seen as more likely to cut the Bank Rate (currently at 5%) when its Monetary Policy Committee next meets on 7 November.

11 October 2024: Shift In Sentiment Could Mean End For Deals

Santander is withdrawing a range of its fixed rate mortgage deals from 10pm tonight (11 October) and will increase rates by up to 0.22 percentage points from Tuesday (15 October), as the market appears to be shifting its stance on the extent of further interest rate cuts this year, writes Jo Thornhill.

It follows similar withdrawals and repricing of fixed rates this week by Coventry building society and Co-operative Bank (see stories below).

Swap rates, which are the interbank lending rates lenders use to price their fixed rate mortgages for customers, have been rising over the past week, reflecting the market’s belief that interest rates may not be cut as quickly as previously thought. 

This has prompted a number of lenders to increase their rates – particularly keenly priced and market-leading deals where margins are smaller.

Among the deals being removed from its shelves are Santander’s range of five-year fixed rates for residential home purchase, which have been particularly competitive. 

This includes a deal priced at 3.68 at 60% LTV, a deal priced at 3.92% at 75% LTV, and a deal priced at 4.15% at 85% LTV – all with a £999 fee.

Mortgage broker Nick Mendes commented on Santander’s move: “When a lender announces a temporary withdrawal of a mortgage product, it generally means they are pausing the offer due to service levels. 

“If a mortgage product is too competitive in the market, meaning the lender’s offering is more attractive than others, this can lead to a surge in applications, which can strain the lender’s ability to process applications efficiently. 

“Another significant factor behind product withdrawals is margins and pricing. If swap rates rise, a previously profitable product may no longer make financial sense.”

The Bank of England’s rate setting Monetary Policy Committee (MPC) will next meet to vote on interest rates on 7 November. Currently Bank Rate is at 5%.

Halifax for Intermediaries is making a number of changes to its mortgage range, available through brokers, from Monday 14 October. It is withdrawing tracker rate products with an early repayment charge (ERC) and introducing new tracker deals with no ERC (the rate you pay on a tracker mortgage always moves in line with the Bank of England Bank Rate).

It is also cutting rates on selected residential product transfer deals for existing borrowers, including deals for additional borrowing.

10 October 2024: Lenders Sustain Cost-Cutting Momentum

Barclays is cutting the cost of selected residential fixed-rate deals, for new and existing borrowers, by up to 0.5 percentage points, effective from tomorrow (11 October).

Clydesdale Bank, part of Virgin Money group, has also reduced selected residential fixed rates across its range by up to 0.25 percentage points and selected buy-to-let deals by up to 0.71 percentage points, also effective from 11 October.

Among Barclays new deals, available through brokers, it is offering a two-year fixed rate for purchase at 4.4% with an £899 fee, for borrowers with at least a 15% cash deposit. Its equivalent five-year deal drops to 4.1%.

For remortgage borrowers the high street bank is offering a five-year fixed rate deal at 3.85% with a £999 fee, for borrowers with at least 40% equity in their home (60% loan to value).

Barclays has also cut selected product transfer deals, for existing customers looking for a new mortgage rate. It is offering a two-year fixed rate at 3.9% with an £899 fee (60% LTV) and a five-year fixed rate deal at 3.96% with no fee (75% LTV).

Clydesdale Bank’s new rates and deals will be unveiled tomorrow, but its lowest five-year fixed rate residential deal will start from 3.89% (60% LTV).

TSB Slapped With £11m Fine Over Arrears Handling

TSB has been hit by a £10.9 million fine by the Financial Conduct Authority over its handling of customers in debt arrears.

The regulator found that, between June 2014 and March 2020, TSB had inadequate processes in place to support customers, which it said created “a real risk that repayment plans were not realistic”.

TSB has paid £100 million in redress to the 232,849 mortgage, overdraft, credit card and loan customers affected.

9 October 2024: Shift In Expectations Due To Global Factors

Coventry building society is increasing selected residential fixed rates from Friday (11 October), as experts predict market volatility could push other lenders to follow suit, writes Jo Thornhill.

It follows two months of successive price cuts from lenders across the board, since the Bank of England cut the Bank Rate from 5.25% to 5% on 1 August.

The general market consensus had been that Bank Rate was likely to be cut again in November, and potentially again in December. But experts now believe geopolitical tensions such as the conflict in the Middle East could trigger a rise in inflation – and a potential pause in rate cuts. 

Swap rates, which are the interbank lending rates lenders use to price their fixed rate mortgages for customers, have risen in recent days, which is likely to have prompted Coventry’s rate rise. However, the mutual lender had been highly competitive with its fixed rates.

Nick Mendes, broker at John Charcol, commented: “A range of factors has unsettled market expectations, leading to a rise in gilt yields and swap rates. This is likely to start feeding into the mortgage market, especially as lenders adjust to the changing conditions.

He added: “We expect to see some lenders begin to reprice their products, particularly among specialist lenders and smaller building societies. 

“If swap rates continue to rise, it’s likely that the lower LTV best mortgage deals which are already slim in margins for lenders will start to reprice with slight adjustment upwards, with more widespread repricing if competitors do the same.”

Coventry is increasing all fixed rates for purchase and remortgage at 65% and 75% loan to value (LTV). Remortgage fixed rates at 80% LTV will also rise in price. 

At the same time the building society is removing the £500 cashback offer on its fixed first-time buyer deals between 65% LTV and 80% LTV. 

Selected product transfer deals, for existing borrowers, up to 75% LTV are also set to rise from Friday (11 October).

Co-operative Bank for Intermediaries is also withdrawing selected fixed rate residential deals from tomorrow (11 October), including some of its most competitively-priced deals. Co-op is withdrawing two-, three- and five-year fixed rates for purchase and remortgage up to 75% loan to value, with a view to repricing higher.

David Hollingworth, associate director at L&C Mortgages, said: “The mortgage market has seen rates falling in recent months but that may be coming to an abrupt halt.  Fixed rate pricing depends on what the market anticipates may happen to interest rates and uncertainty over the forthcoming budget, mixed messages from the Bank of England and global unrest is pushing costs back up for lenders. Borrowers may have been lulled into a false sense of security with round after round of rate improvements but this is a reminder that things can change.”

The Bank of England’s rate setting Monetary Policy Committee (MPC) will next meet to vote on interest rates on 7 November. Currently Bank Rate is at 5%.

3 October 2024: HSBC Unveils Rates On Low-Deposit Mortgages

Halifax for Intermediaries, Santander and Barclays have become the latest lenders to slash the cost of fixed rate mortgage deals, as HSBC unveils lower rates for low-deposit mortgages announced yesterday, writes Jo Thornhill.

Halifax has cut selected residential remortgage rates by up to 0.24 percentage points and selected deals for purchase, including for first-time buyers, by up to 0.11 percentage points, effective from tomorrow (4 October).

The new rates and deals, available through brokers, will be unveiled tomorrow morning, but brokers expect they could challenge the current best buys.

Halifax has also reduced selected rates on its product transfer range for existing borrowers looking for a new deal.

Santander has cut selected residential fixed rates by up to 0.29 percentage points for new and existing customers, and buy-to-let (BTL) rates by up to 0.17 percentage points for new borrowers and by up to 0.16 percentage points for existing BTL customers. The reductions are effective from tomorrow (4 October) and all deals will be available either direct or through brokers, said Santander.

Barclays has reduced selected fixed rates across its residential purchase and remortgage ranges, also effective from 4 October. It will offer a five-year fixed rate for purchase at 3.92% with no fee, for borrowers with at least a 40% cash deposit (60% loan to value mortgage).

Among its lower remortgage rates, Barclays is offering a two-year fixed rate deal at 5.32% for borrowers with at least 15% equity in their property (85% LTV) and a five-year fixed rate priced at 4.93% also at 85% LTV. Both deals come with a £999 fee.

HSBC has unveiled its new lower mortgage rates, available through brokers, following its announcement of a rate cut yesterday (see stories below).  

The bank is now offering some competitive deals at higher loan to value ratios, albeit not market leading.

Its five-year fixed rate for purchase for borrowers with a 10% cash deposit, for example, is now priced at 4.54% with a £999 fee (90% LTV). The deal also pays £350 cashback on completion.

The equivalent purchase deal for borrowers with a 20% deposit is now priced at 4.16%.

HSBC’s cheapest residential remortgage fixed rate is now its five-year fix at 3.83% (60% LTV), also with a £999 fee. However, First Direct – which is owned by HSBC – is offering a similar deal at 3.79% available direct from the lender and not through brokers. 

At 75% LTV, HSBC is offering a five-year fixed rate for remortgage at under 4% with a 3.99% deal with a £999 fee.

The Bank of England’s rate setting Monetary Policy Committee (MPC) will next meet to vote on interest rates on 7 November. Currently Bank Rate is at 5%.

2 October 2024: Cuts Expected To Trigger Further Competition

HSBC is cutting fixed rates across its residential and buy-to-let deals as the market’s price war shows no sign of slowing, writes Jo Thornhill. 

The high street banking giant – which already offers some of the most competitive deals on the market – has confirmed it will slash the cost of fixed rates from tomorrow (3 October). 

Cuts will apply across purchase and remortgage deals, as well as on product transfers for existing customers looking for a new fixed rate, including those moving home and wanting to borrow more.

The bank’s new rates and deals, available through brokers, will be unveiled tomorrow. But brokers are expecting the rates to be highly competitive. 

David Hollingworth at broker London & Country Mortgages, commented: “HSBC already sits pretty high in the tables based on its rates so this latest cut should see that position improved even more.” 

Tomorrow will also see the launch of HSBC’s new high value mortgage range for loans worth more than £2 million. Deals will come with a £1,999 booking fee and will be available to home movers, first-time buyers and remortgage borrowers, who have at least a 25% cash deposit or equity in their home (75% loan to value).

Virgin Money is cutting selected residential fixed rate deals for purchase and remortgage at higher loan to value ratios, by up to 0.25 percentage points, effective from tomorrow (3 October). Among the new deals, is a five-year fixed rate for purchase at 4.49% with a £995 fee for borrowers with a 10% cash deposit (90% LTV).

Virgin already offers a market-leading five-year fix for purchase at 90% LTV at 4.43% with a £995 fee, but this deal is restricted to brokers, whereas its new rate is available directly from the lender. The bank is also offering a five-year deal for remortgage for borrowers with 20% equity in their home (80% LTV) at 4.41%, also with a £995 fee.

MPowered Mortgages has slashed selected fixed rates by up to 0.3 percentage points, with immediate effect. The lender is offering, through brokers, a three-year fixed rate deal for home purchase at 3.75% with a £999 fee, for buyers with at least a 40% deposit. Other fixed rates have been cut for borrowers with deposits of between 20% and 40%.

The Mortgage Works, the specialist lending arm of Nationwide building society, has cut selected buy-to-let rates for new and existing customers by up to 0.55 percentage points, effective from tomorrow (3 October). Among the new rates it has a two-year fixed rate deal for remortgage at 3.59% with a 3% fee, available for borrowers with at least 35% equity in their BTL property (65% LTV), and a five-year fix, also for remortgage, at 3.79% with a 3% fee (at 75% LTV).

Mr Hollingworth said: “Further drops to Bank of England Bank Rate are priced into fixed rates already so we may see the very lowest fixed rates still edging down rather than diving – but at the moment competition is helping to add further improvements.  

He added: “Of course if something changes market expectation we know that will quickly feed through to mortgage rates. Inflation figures out next week and the November Bank Rate decision, plus a Budget, are all factors that could have a bearing on how quickly rates could head lower.”

The Bank of England’s rate setting panel, the Monetary Policy Committee (MPC) will next meet to vote on interest rates, currently at 5%, on 7 November.

1 October 2024: Lenders Vie For Top Spots As Rate Cut Nears

First Direct has slashed the cost of its fixed-rate deals by up to 0.25 percentage points, effective immediately, and is offering a market-leading five-year fix for residential remortgage, available to new and existing customers, at 3.79%, writes Jo Thornhill.

Its remortgage best-buy deal requires homeowners to have at least 40% equity in their property (60% loan to value mortgage). It has a standard product fee of £490 across its range.

First Direct, which is an online and phone bank owned by HSBC, only lends directly to borrowers and doesn’t work with brokers.

Among its other new rates is a five-year fixed rate for purchase or remortgage at 5.09% (95% LTV), a two-year fixed rate for remortgage at 4.09% (60% LTV) and a five-year fixed rate, also for remortgage, at 3.94% (75% LTV). These deals all have the standard £490 fee.

The moves follow a spate of rate cuts from lenders in recent weeks (see stories below), with the market beginning to price-in a quarter percentage point (0.25%) cut to the Bank of England Bank Rate in November.

The Bank of England’s rate setting panel, the Monetary Policy Committee (MPC) will next meet to vote on interest rates, currently at 5%, on 7 November.

27 September 2024: Skipton 100% LTV Deal Slashed to 5.29%

Coventry and Skipton building societies have reduced their fixed-rate deals across their respective residential mortgage ranges, with Coventry now offering a market-leading five-year fixed-rate deal for home purchase at 3.69%, writes Jo Thornhill.

These latest cuts follow a busy week of reductions from across the market, and growing competition in the five-year fixed rate for home purchases sector (see stories below). Earlier in the week Barlcays reduced its five-year purchase fixed rate to 3.71%.

Nick Mendes at broker John Charcol said: “Lenders appear to be already pricing in an expected cut to the Bank of England Bank Rate in November, which is great news for borrowers.”

Coventry’s table-topping mortgage is for borrowers with at least a 35% cash deposit (65% LTV) towards their home purchase, and there is a £999 fee.

It has cut a range of its other residential rates by up to 0.27 percentage points, and it has also cut selected offset mortgage deals by up to 0.53 percentage points. Its two-year fixed rate offset mortgage for borrowers with at least 25% equity in their property (75% LTV) is cut to 4.88%. There is a £999 fee.

Skipton building society has cut its fixed rates by up to 0.36 percentage points, effective from Monday (30 September), including its Track Record mortgage product, which is a fee-free five-year fixed rate for first-time buyers who have no cash deposit towards their purchase (100% loan to value). Track Record has been cut by 0.15 percentage points to 5.29%.

Skipton has also cut its exclusive first-time buyer five-year fixed rate deal for borrowers with a 10% deposit (90% LTV) to 4.89% (down from 5.25%). This deal has a £1,500 fee.

Its fee-free two-year residential purchase rate at 90% LTV is cut to 5.34% (down from 5.46%).

26 September 2024: Virgin Challenges With No-Fee 4.99% Loan

Virgin Money has slashed selected fixed-rate deals for new customers by up to 0.15 percentage points, and is offering a market-leading five-year fixed rate at 4.99% for home buyers with just a 5% cash deposit, writes Jo Thornhill.

The deal (at 95% loan to value), which will appeal to cash-strapped first-time buyers, has no arrangement fee and is available through brokers from tomorrow (27 September).

Previously the best-buy five-year fixed rate for residential home purchase at 95% loan to value was at 5.01% with a £999 fee, available from Halifax.

Virgin’s is also offering a five-year fixed-rate remortgage deal at 3.96% with a £995 fee (60% LTV).

And the bank, which will become part of Nationwide building society later this year, has cut selected fixed rate deals for existing customers looking for a new rate (product transfer deals) as well as buy-to-let rates for new customers.

It has a five-year fixed rate for buy-to-let remortgage at 4.16% with a £2,195 fee for landlords with at least 25% equity in their BTL property.

25 September 2024: Yorkshire Widens Scope For FTBs

Yorkshire building society has slashed the rate on its flagship deal for first-time buyers, which only requires a £5,000 cash deposit on loans up to £500,000, by 0.45 percentage points to 5.79%, writes Jo Thornhill.

The five-year fixed-rate £5,000 deposit deal has no arrangement fee. It is only available to first-time buyers, who can use it to purchase a property worth up to £500,000, which effectively means FTBs can potentially borrow up to 99% loan to value.

It comes as a number of lenders have cut rates and altered lending criteria as a way to enable more first-time buyers to get onto the property ladder.

Halifax has cut selected fixed rates for home purchase, including for first-time buyers, by up to 0.3 percentage points, effective from tomorrow (26 September). The rate reductions will impact new build and affordable housing deals as well as larger mortgage loans (£2 million or more).

In addition, both Halifax and Nationwide building society, the two largest mortgage lenders, have increased the income-to-mortgage loan ratio they’ll accept for first-time buyers. Nationwide will now lend up to 6 x income, including on 95% LTV mortgages, for FTBs taking a five or 10-year fixed rate deal.

Halifax will lend up to 5.5 x income, also with specific criteria attached (see stories below).

While it is important buyers don’t financially over-extend themselves to get on the property ladder, brokers say increased choice and flexibility from lenders is welcome.

Nick Mendes at broker John Charcol said: “Lenders are driving competition through rate reductions and innovative products, which will likely stimulate more activity among first-time buyers, particularly those who have been waiting for the right opportunity.

“While it may take until next year to fully understand the long-term impact of higher income multiples on property prices, the current outlook is encouraging. Proactive support from lenders for first-time buyers is crucial in driving market activity. 

“As rates improve, we can expect a rise in first-time buyer enquiries as they seek to secure favourable deals before property prices potentially accelerate further.”

Mark Harris, chief executive at broker SPF Private Clients, said: “Higher LTV products are typically taken on a repayment basis, which also protects borrowers as they will be chipping away at the original debt. For example, take Nationwide’s five-year Helping Hand product pegged at 4.99% – say you borrowed £380,000 on a £400,000 property with 25-year term, this gives you 95% LTV on completion but after five years, this will be reduced to approximately 85% LTV, with debt around £337,000.

“Even with a longer term of say 35 years, the debt erosion (without allowing for any house price inflation or additional overpayments) means a 90% LTV is possible after five years.”

24 September 2024: Deep Reductions For Premier Customers

Barclays has cut the cost of selected residential fixed rate deals for new customers by as much as 0.34 percentage points and is now offering a market-leading five-year fix for purchasers at 3.71%, writes Jo Thornhill.

It comes a day after Nationwide building society slashed its fixed rates to offer a similar purchase deal at 3.74% (see stories below).

But where Nationwide’s deal has a £1,499 fee and is only available on loans of £300,000 or more, Barclays’ deal has a lower £899 fee and is available on loans from as little as £5,000. Homebuyers require a 40% cash deposit for both deals.

Barclays Premier banking customers can get a preferential rate of 3.70% on the equivalent mortgage deal for purchase.

Many of Barclays’ largest rate cuts, all of which are effective from tomorrow (25 September) were on its purchase deals for its Premier banking customers and on its green mortgage range, for energy efficient homes with an energy performance rating of A or B).

For example, it is offering a five-year fixed rate deal at 4.60% with a £999 fee for Barclays Premier bank customers who have a 10% cash deposit towards their purchase (a 90% loan to value deal). This is likely to appeal to first-time buyers.

Barclays also has a two-year fix for purchase on a green mortgage at 4.33%. This deal has no fee, but borrowers need a 40% cash deposit (60% LTV).

The market has seen an increased focus on first-time buyers with lenders improving deals and terms designed to provide a boost onto the property ladder.

Yesterday for example, Nationwide building society confirmed that it will now lend up to six times’ household income for first time buyers, even for those with only a 5% cash deposit towards their purchase.

And earlier this month Halifax lowered its minimum household income requirement to borrow 5.5 times’ income on a mortgage loan from £75,000 to £50,000. However, borrowers will need a minimum 10% cash deposit to be eligible (see stories below).

MPowered Mortgages has cut selected fixed rate deals by up to 0.1 percentage points across all loan to value ratios up to 80% LTV. It is offering a three-year fix for home purchase at 3.91% with a £999 fee for borrowers with a 40% deposit.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “No sooner does one lender offer a sub-3.75% five-year fix, then another joins the fray, with Barclays launching a market-leading 3.71%. The clear direction of traffic for mortgage rates is downwards, with lenders gently easing pricing as they compete for business.

“We don’t expect any dramatic reductions going forward but nevertheless, subtle improvements in rates will make life easier for borrowers.”

23 September 2024: Nationwide Throws Down Gauntlet To Rivals

Nationwide building society has cut selected residential fixed-rate mortgage deals by up to 0.31 percentage points, effective from tomorrow (24 September), and is offering a five-year fixed-rate deal for new customers at a market-leading 3.74%, writes Jo Thornhill.

While the rate is among the lowest available over five-years, it is only for home purchase for borrowers with at least a 40% cash deposit, and only for those borrowing at least £300,000. There is also a steep mortgage arrangement fee of £1,499.

Nationwide’s equivalent five-year fixed rate for remortgage (for borrowers with at least 40% equity in their property) has fallen to 3.79%, also with a £1,499 fee, and only for mortgage loans of at least £300,000.

NatWest is offering the next-best deal in this category at 3.77% with a £1,495 fee (also 60% LTV), but with no minimum loan requirement. 

The bank has also slashed selected fixed rates for new customers, effective from 24 September, although its 3.77% deal was not reduced further. 

The bank cut its two-year fixed rate for purchase to 4.02% (60% LTV) with a £1,495 fee, among other reductions for buyers and remortgage customers.

Accord Mortgages, part of Yorkshire building society, has lowered its fixed rates by up to 0.55 percentage points across its residential range. It includes a significant cut to its £5k Deposit Mortgage aimed at first-time buyers with a small deposit. The product, which launched in March to enable first-time buyers with just a £5,000 deposit to purchase a property valued up to £500,000, is reduced by 0.45 percentage points to 5.79%. It is the second cut to this product’s rate in the last month.

Among its other reductions, Accord is offering a five-year fixed rate for home purchase at 3.99% with a £1,995 fee for borrowers with at least a 25% cash deposit (75% LTV). The deal has a free valuation and £250 cashback on completion. There is also a two-year fixed rate deal for the purchase of a new build property at 5.33% with a £995 fee for borrowers with a 10% cash deposit (90% LTV).

Mortgage brokers have welcomed the rate reductions following last week’s freeze in interest rates by the Bank of England. The Bank chose to keep the benchmark Bank Rate at 5%. The next interest rate decision isn’t until 7 November.

Among the other highlights of Nationwide’s rate cut include a five-year fixed rate for home buyers with just a 5% deposit (95% LTV) at 4.99%. It is the first 95% LTV deal in the market at under 5% in at least six months.  

The equivalent deal for buyers with a 10% deposit (90% LTV) is at 4.49%, also with a £999 fee.

At the same time Nationwide has lowered the cost of its product transfer deals, for existing customers looking for a new fixed rate, by up to 0.29 percentage points, and increased its maximum income to loan ratio offer through its Helping Hand initiative for first-time buyers.

Nationwide will now lend up to six times household income for buyers taking a five- or 10-year fixed rate deal up to 95% loan to value. This is up from a previous maximum of 4.5 times income. It means a couple with a total income of £50,000 per year could borrow up to £300,000.

Nationwide has also upped its maximum loan size to £750,000 for borrowers with only a 5% deposit (up to 95% LTV). Previously the maximum loan size at this loan to value ratio was £500,000.

Nick Mendes at broker John Charcol said: “Nationwide’s latest initiative is a game-changer for first-time buyers, delivering a powerful boost to help more people step onto the property ladder. This increased borrowing power can make all the difference for aspiring homeowners, especially in a challenging market where property prices often feel out of reach. 

“By providing this additional financial flexibility, Nationwide is turning dreams of homeownership into reality for thousands of people who may have previously struggled to afford their first home.”

18 September 2024: Halifax, Virgin, Accord Lower Rates

Halifax, Virgin Money and Accord, the buy-to-let (BTL) arm of Yorkshire building society, have all tweaked their fixed rates down, as eyes turn to the Bank of England decision on interest rates due at lunchtime tomorrow.

Halifax has cut selected fixed rate deals for purchase and home movers by 0.09 percentage points, effective tomorrow (19 September), including deals for large loans, new build and affordable housing. 

New rates and deals will be unveiled online tomorrow.

Virgin Money has also reduced selected fixed rates across its residential and buy-to-let ranges by up to 0.2 percentage points, also effective from 19 September. Among its new deals is a residential purchase rate at 5.03% with no fee, for buyers with a 5% cash deposit. The deal pays £300 cashback on completion.

Virgin is also offering a five-year fixed rate for buy-to-let purchase or remortgage at 3.80% with a 3% fee, available at 60% loan to value.

Accord Mortgages has lowered selected BTL deals for purchase and remortgage by up to 0.3 percentage points, effective from 19 September.

The mutual has a two-year fixed rate for BTL purchase at 5.09% with a £3,495 fee (80% LTV) and a five-year deal for BTL remortgage at 4.14% with a £995 fee (also 60% LTV).

The Bank of England’s Monetary Policy Committee (MPC) will reveal its next decision on the Bank Rate, currently at 5%, at 12 noon tomorrow (19 September). Bank Rate was cut from 5.25% to 5% on 1 August, but experts predict there won’t be another cut tomorrow and instead think the next reduction is likely to come in November.

Nick Mendes, at broker John Charcol, said: “Despite today’s inflation news [prices rose at 2.2% in the year to August, the same as July], which all but confirms the expected Bank Rate hold decision tomorrow, Halifax has reduced rates further.

“Recent changes in mortgage pricing have been driven by financial markets and lenders’ competitive nature, following a challenging period. For lenders to price competitively, market stability was necessary. This stability began to take shape after the general election announcement, the decline in inflation towards the 2% target, and the initial reduction in the Bank Rate (from 5.25% to 5% in August), indicating a shift in MPC voting behaviour. 

“Swap rates, which lenders use to hedge against interest rate changes, have fallen. This has boosted lenders’ confidence, enabling them to reduce pricing quickly and narrow margins to stay competitive without the risk of being caught out by sudden market shifts.”

16 September 2024: Market Poised For Interest Rate Decision

Santander has cut selected residential fixed rate deals for new and existing customers by up to 0.29 percentage points, effective from tomorrow (17 September), writes Jo Thornhill.

It is offering a five-year fixed rate for home purchase at 3.80% with a £999 fee for borrowers with at least a 40% deposit (60% loan to value mortgage). The two-year equivalent deal is available at 3.99%.

The current market-leading deal for home purchase is 3.77% with a £1,495 fee, on offer from NatWest – also at 60% LTV.

Santander has also cut selected deals for existing residential borrowers and it has nudged down buy-to-let fixed rates by up to 0.09 percentage points.

First Direct has lowered the cost of its fixed rate deals for residential mortgage borrowing by up to 0.35 percentage points with immediate effect.

The online bank’s new deals – which are only available direct bank and not through brokers – include a five-year fix for home purchase priced at 3.83% with a £490 product fee. Borrowers need at least a 40% deposit to be eligible (60% LTV). 

These latest rate cut announcements come as the market prepares for the Bank of England’s next interest rate decision, due at 12 noon on Thursday (19 September). 

The Bank Rate is currently at 5% after it was cut by the central bank from 5.25% on 1 August. A further cut would be welcomed by borrowers, particularly those coming to the end of fixed rate deals in the coming months.

First Direct is also offering a two-year fixed rate for remortgage at 4.27% and a five-year remortgage deal at 3.94%. Both rates require 40% equity in the property (60% LTV) and charge the lender’s standard £490 product fee.

Two-year fixed rates for purchase are now available at 4.64% for borrowers with a 20% deposit (80% LTV) with a £490 fee, or at 4.68% over three years, or 4.2% over five-years (same loan to value and fee).

The online bank has also cut selected deals for existing customers, including its lifetime tracker, which is slashed by 0.75 percentage points to a new starting pay rate of 5.49% (60% LTV), down from 6.24%. 

The deal, which tracks the Bank of England Bank Rate (now at 0.49 percentage points above Bank Rate) charges the lender’s standard £490 fee.

Skipton building society has launched a range of deals for borrowers with a 20% cash deposit or equity (80% loan to value) and has reduced the rate on its 100% loan to value Track Record mortgage to 5.44% (previously 5.49%). Track Record is a fee-free five-year fixed rate for first-time buyers with no deposit, but who can show they have paid rent for 12 months consecutively.

Skipton’s 80% LTV deals include a two-year fixed rate for purchase at 4.35% with a £2,995 fee and a fee-free two-year fixed rate for remortgage at 5.28%.

13 September 2024: NatWest Latest To Announce Fixed Rate Cuts

NatWest has trimmed the cost of selected fixed rates mortgages at higher loan to value (LTV) ratios, giving first-time buyers and those with smaller deposits a bite of the cherry, writes Jo Thornhill.

NatWest has reduced rates on a range of two-year fixed rate deals for residential purchase – popular with first-time buyers – and remortgage deals at higher LTVs.

It is offering a two-year fix at 5.2% for borrowers with a 10% cash deposit (90% LTV) for a £995 fee. The equivalent fee-free deal is at 5.4%.

For buyers with a 5% cash deposit (95% LTV) there is a two-year fixed rate at 5.8%, also with a £995 fee. 

Selected first-time buyer deals come with no fees and £250 cashback on completion.

The high street bank has also cut selected remortgage rates, including a two-year deal at 90% LTV on offer at 5.65% with a £995 fee. A fee-free equivalent is available at 5.99%.

Over five-years, NatWest is offering a remortgage deal at 5.09% (90% LTV), down from 5.11% with a £995 fee, with a  fee-free equivalent deal at 5.19%. 

Competitor banking giant HSBC also confirmed the new rate on its 5-year fixed deal for residential purchase at 3.82%. However the cut, which the lender gave notice of yesterday (see story below), is not enough to beat NatWest’s market leader priced at 3.77% over the same term. 

Both deals require a 40% deposit and charge fees of £999 and £1,495 respectively.

They are the latest in a continued wave of cuts, although market experts remain divided on whether interest rates will be reduced next week (19 September) when the Bank of England’s Monetary Policy Committee meets.

A Reuters poll published today found that 100% of the 65 economists surveyed thought that interest rates would be held at 5% in September. Nearly 80% (49 of the 65) expected one more cut this year, with almost of these (48) saying this would be in November and just one predicting in December. There is no interest rate decision in October.

12 September 2024: Rates Tumble As Eyes Turn To BoE Decision

Nationwide building society, HSBC, TSB, Virgin Money, Yorkshire building society, and MPowered Mortgages are among a cohort of lenders reducing the cost of their fixed rate deals.

It comes as the European Central Bank (ECB) has cut its deposit interest rate by 0.25 percentage points to 3.5% (announced 12 September, effective 18 September), leading borrowers to hope the Bank of England may do the same to UK interest rates when its Monetary Policy Committee (MPC) meets next Thursday (19 September). 

The Bank of England Bank Rate stands at 5%, after it was cut from 5.25% on 1 August.

Nationwide has cut selected fixed rate deals by up to 0.25 percentage points, predominantly across its first-time buyer range for borrowers with a small cash deposit, effective from tomorrow (13 September).

The mutual lender is offering a five-year fixed rate at 5.04% with a £999 fee for buyers with just a 5% cash deposit (95% LTV), while its two-year purchase deal for borrowers with at least a 25% deposit (75% LTV) is cut to 4.49%, also with a £999 fee.

TSB has cut fixed rates by as much as 0.35 percentage points, effective from tomorrow, bringing its five-year fixed rate for purchase as low as 3.79% with a £995 fee (60% LTV). It draws close to the market-leader in this category, which is NatWest offering a five-year fixed rate for purchase at 3.77% with a £1,495 fee at 60% LTV.

Virgin Money has also announced reductions to its fixed rate range, with a focus on higher loan to value deals (80% LTV, 85% LTV and 90% LTV). It is also making cuts to selected buy-to-let deals and rates for existing customers, all effective from tomorrow (13 September). The bank has a two-year residential purchase deal for borrowers with at least a 20% deposit (80% LTV) at 4.58% with an £895 fee.

HSBC has announced reductions across its fixed rate range, effective from tomorrow (13 September), when the new rates and deals will be unveiled. The high street lender already offers five-year fixed rates for residential purchase and remortgage at below 4%, but this latest move could challenge the best-buys.

Yorkshire building society has cut rates by up to 0.55 percentage points across a range of deals with immediate effect, marking the mutual lender’s second rate cut in three weeks. 

Among the highlights is a five-year fixed rate deal for remortgage priced at 3.99% for borrowers with at least 25% equity in their home (75% LTV). The deal has a £1,495 fee.

Yorkshire has also cut two-year rates for purchase and remortgage. It is offering a two-year fix for remortgage at 4.24% (60% LTV) with a £1,495 fee and a two-year fix for home purchase at 5.19% for buyers with a 10% deposit. This deal also has a £1,495 fee.

MPowered Mortgages has cut selected fixed rates for residential purchase and remortgage by up to 0.27 percentage points, effective from tomorrow (13 September). 

The lender, who’s deals are available through brokers, is offering a five-year fixed rate deal for purchase at 3.87% with a £999 fee, or at 3.97% with no fee. Borrowers need at least a 40% (60% LTV) cash deposit to be eligible.

Three-year deals for purchase now start from 3.99% with a £999 fee (60% LTV)  or 4.17% with no fee, while two-year deals, also at 60% LTV, are dropped to 4.24% with a £999 fee or 4.44% with no fee.

Stuart Cheetham, chief executive at MPowered Mortgages commented: “We are delighted to be now offering sub-4% rates across three and five-year deals. 

“With lenders cutting rates literally daily, at the moment, this is great news for borrowers, bringing welcome relief to homeowners who are due to remortgage.”

Find out the monthly cost of a mortgage across a range of interest rates with our mortgage calculator.

11 September 2024: Halifax Unveils New Pricing

Halifax has unveiled details of the new lower rates it announced yesterday (see story below) on a range of broker deals available to both first-time buyers and home movers, writes Jo Thornhill.

While the bank’s keenest residential fixed rates (at 60% loan to value) have not been reduced, Halifax is now offering a five-year fixed rate for home purchase at 4.64% (down from 4.79%) for borrowers with just a 10% cash deposit (90% LTV). The deal comes with a £999 fee. 

While the rate is competitive and will appeal to first-time buyers, it’s not enough to beat the current best-buy at 90% LTV on offer from Virgin Money at 4.54% which carries the same £999 fee.

Over two years Halifax is offering a deal for purchase priced at 5.13% (also 90% LTV) with a £999 fee. This is down from 5.17%. The best buy is also available from Virgin Money at 5.09% with a £995 fee.

Smaller and specialist lenders have also continued to chip away at fixed rate costs today, across both residential and buy-to-let sectors.

Co-operative Bank for Intermediaries announced reductions to residential fixed rates for new and existing customers, effective from Friday (13 September). The lender will cut two and five-year fixed rates for borrowers with at least 40% deposit or equity in their home (60% LTV). 

The bank is currently offering a two-year rate at 4.34% and a five-year rate at 3.99% for residential purchase and remortgage for new customers at 60% LTV. Both deals have a £999 fee. The new rates will be unveiled and available for borrowers on Friday.

The Mortgage Works, the specialist lending arm of Nationwide building society, has nudged down the cost of selected product transfer deals for existing buy-to-let customers. 

The rate cut of 0.05 percentage points takes the lender’s best two-year fixed rate down to 3.79% with a 3% fee (65% LTV). The equivalent three-year and five-year rates now start from 3.84%.  

Principality building society has cut selected fixed rate deals by up to 0.1 percentage points across its residential, buy-to-let, and holiday let ranges. The new rates will be unveiled and live tomorrow (12 September).

Keystone Property Finance, the specialist buy-to-let lender, has lowered the rates on selected deals by up to 0.25 percentage points. Five-year fixed rates for standard BTL borrowing now start from 4.04% with a 5.5% fee (65% LTV).

10 September 2024: Halifax Hits Back At Competition

Halifax has cut selected two and five-year fixed rates for home purchase, including deals for first-time buyers, as it fights to stay at the top of the best buy tables in an increasingly competitive market, writes Jo Thornhill.

The high street lending giant will unveil new lower rates, available through brokers, across a range of loan to value (LTVs) ratios, up to 90% LTV, from tomorrow morning (11 September). 

Halifax is currently offering the market-leading two-year fixed rate for home purchase priced at 4.12% with a £999 fee, for buyers and home movers with a least 40% deposit (60% LTV).

But over five-years NatWest is offering the best fixed rate deal for home purchase at 3.77% with a £1,495 fee (also at 60% LTV). In contrast, Halifax’s equivalent deal is currently at 3.81% with a £999 fee.

Nick Mendes, broker at John Charcol Mortgages, commented: This latest move from Halifax is a further encouraging sign for the market. We can still expect lenders to make some modest reductions ahead of next week’s Bank of England Bank Rate announcement. 

“While markets are pricing in a reduction, I anticipate another 0.25% decrease to Bank Rate in September, which should spur further pricing adjustments. The last reduction caught some market sectors off guard, leading to frantic repricing the following day, which in turn encouraged lenders to reduce rates further.”

Gen H has bucked the trend for rate cuts by announcing a rate rise of up to 0.29 percentage points across selected fixed rate deals from tomorrow (11 September).

The lender says it is increasing fixed rate costs as a way of controlling demand, to ensure service levels remain high. Its new rates and deals, available through brokers, will be live online tomorrow.

9 September 2024: Reductions On Residential And BTL Deals

Barclays and TSB have become the latest in a string of major lenders to cut mortgage costs, as new data reveals that fixed rates over two and five-years are at their lowest level since spring, writes Jo Thornhill. 

Barclays has trimmed the cost of selected fixed rates, for new and existing borrowers including for buy-to-let (BTL), by up to 0.4 percentage points, effective tomorrow (10 September).

The bank has cut its two and five-year BTL purchase deals to 5.28% and 4.32% respectively. Both deals charge a £1,295 product fee and require a 25% cash deposit.

For buy-to-let remortgagers, Barclays is offering a two-year fee-free deal at 5.4% and a five-year equivalent deal at 4.52%, both with a 40% deposit.

Barclays has also reduced rates on its larger loans range, for residential mortgages of between £2 million and £10 million. Its five-year fix at 60% loan to value, for example, is slashed from 4.47% to 3.93%. The deal has a £1,999 fee.  

TSB has reduced rates across its residential and buy-to-let deals by up to 0.4 percentage points, also effective from tomorrow (10 September).

The bank’s new rates and deals, available through brokers, will be unveiled tomorrow morning. But the most significant rate reductions, of 0.4 percentage points, will be on purchase and remortgage shared ownership and shared equity deals. Fee-free two-year shared ownership deals currently start from 5.19%.

The lender’s five-year fixed rates for residential remortgage, currently starting at 4.34% with a £995 fee, are also reduced by 0.3 percentage points. 

The lender’s two and five-year fixed rate BTL remortgage deals have been cut for borrowers with at least 20% to 25% equity in their property.

The latest cuts come as data from Moneyfacts shows the average residential two-year fixed rate was cut by 0.21 percentage points in the past month alone. Five-year rates were cut by 0.18 percentage points, on average. 

Two-year fixes are now at their lowest level since February with rates averaging 5.56%, while average five-year fixed rates, at 5.25%, are at their lowest since March.

Jonathan Bone, lead mortgage advisor at online mortgage broker Better, commented: “The recent drop in fixed mortgage rates is encouraging, especially for first-time buyers who have been waiting for a more favourable market.  With rates at their lowest levels since early 2024, now could be a good time to explore your options.” 

However, he added that it’s ‘essential’ to remain cautious and prepared: “First-time buyers should focus on improving their credit score and saving as much as possible for a deposit, as the availability of certain deals has tightened.”

Find out the monthly cost of a mortgage across a range of interest rates with our mortgage calculator.

6 September 2024: Weak US Data Suggests Upcoming Rate Cuts

Coventry building society and MPowered Mortgages are the latest lenders to reduce the cost of fixed-rate deals as competition in the market shows no signs of slowing, writes Jo Thornhill.

Mutual lender Coventry has cut selected fixed rates for residential borrowers by up to 0.19 percentage points as well as lowering rates for BTL customers by up to 0.45 percentage points effective today.

MPowered Mortgages has reduced rates across its range by up to 0.5 percentage points, effective from 7 September.

It follows chunky rate cuts by major lenders over the past week (see stories below) with markets expecting interest rates to fall further before the end of the year. The Bank of England’s next decision on its key Bank Rate (currently at 5%, reduced from 5.25% in August) is on 19 September.

Coventry has reduced rates on all its fixed-rate residential deals at 75% loan-to-value (LTV), and on deals at 90% to 95% LTV. It is offering a two-year fixed rate for purchase at 5.15% with a £999 fee for borrowers with a 10% cash deposit (90% LTV).

Among its BTL rate cuts, Coventry is offering a five-year fixed rate for remortgage at 4.52% with a £1,999 fee at 75% LTV.

MPowered Mortgages’ new fixed-rate deals, available through brokers, will be available to view on its website from tomorrow.

The Bank of England’s upcoming decision is likely to be influenced by the decision of the US Federal Reserve on its interest rates on 18 September.

Worse-than-expected jobs data in the US, out today, has prompted experts to predict the Fed could cut US interest rates by half a percentage point from the current range of 5.25-5.5%.

Richard Carter, head of fixed interest research at Quilter Cheviot, said: “Today’s US jobs data is expected to determine the size and pace of the highly anticipated Federal Reserve rate cuts. We will no doubt see increased speculation that the Fed will take decisive action with a 50 basis points cut on 18 September.

“Markets have been pricing in significant cuts before the end of the year, with many economists touting more than 1%, and today’s labour market data could exacerbate this further. As was the case last month, this data release has proven notably weaker than had been hoped, suggesting the economy may be weakening more than is consistent with the Fed’s aim of a soft landing.”

5 September 2024: Santander Trims Mortgage Costs

Santander has cut the cost of selected fixed rates for new customers by up to 0.27 percentage points, effective from tomorrow (6 September), writes Jo Thornhill.

The new rates, available through brokers, apply across the bank’s residential and buy-to-let (BTL) ranges, and include cuts to the cost of deals for new-build homes and larger mortgage loans of £2 million and over.

For existing Santander customers, the bank’s product transfer deals have been slashed by up to 0.32 percentage points, while buy-to-let fixed rates will decrease by up to 0.23 percentage points.

Santander will unveil details of its new rates tomorrow.

Virgin Money has cut the cost of its residential and BLT ‘fix and switch’ product ranges which offer a five-year fixed rate with the option to switch away penalty-free after two years. Among the new deals Virgin is offering a five-year residential ‘fix and switch’ at 4.93% with no fee up to 80% LTV, and an equivalent deal at 5.44% at 90% LTV.

Leeds building society has lowered selected residential mortgage deals by up to 0.16 percentage points, and selected BTL deals by up to 0.2 percentage points, effective from 6 September.

Other smaller mutual lenders including Suffolk building society and Market Harborough building society have also announced fixed rate mortgage price cuts.

Bank of Ireland has cut selected fixed rates, at between 75% loan to value (LTV) ratios up to 90% LTV, by up to 0.29 percentage points, also effective from 6 September. The lender is offering a two-year fixed rate deal at 4.93% with a £1,495 fee for borrowers with at least a 20% deposit.

Yorkshire building society has increased the loan to value ratio it will lend to for purchasers of new-build homes from 85% up to 90% LTV. The mutual lender has also lowered the minimum household income requirement for borrowing of up to five times’ income, from £60,000 to £50,000. Borrowers will require at least a 10% cash deposit.

Last week Halifax and Lloyds Bank (who are part of the same banking group) also lowered their minimum household income requirement to borrow 5.5 times’ income on a mortgage loan from £75,000 to £50,000. Borrowers need a minimum 10% cash deposit to be eligible (see stories below).

2 September 2024: NatWest Slashes Home Buyer Mortgage 

Barclays, HSBC and NatWest are the latest lenders to cut the cost of their fixed-rate mortgage deals as competition in the market shows no sign of cooling, writes Jo Thornhill .

NatWest was first out the gates announcing rate cuts of up to 0.19 percentage points across its range, effective from 3 September, including a five-year fixed rate for home purchase at 3.77% (previously at 3.89%). This market-leading deal is available to buyers with a 40% cash deposit and has a £1,499 fee.

The bank has cut other selected two- and five-year residential fixed rates for purchase and remortgage. It is offering a two-year fee-free fixed rate for remortgage at 4.65% (60% LTV) and a five-year remortgage deal at 3.92% with a £1,495 fee (60% LTV).

Barclays has cut selected two and five-year fixed residential rates, effective from 3 September. The cuts are predominantly focused on higher loan to value ratio deals. 

It is offering a fee-free two-year fixed rate for purchase at 4.75% for borrowers with a 15% cash deposit (85% LTV) and a five-year deal for remortgage at 4.07% (75% LTV) with a £999 fee.

The bank has also reduced selected deals for existing customers looking for a new fixed rate. Highlights include a five-year fixed rate at 3.88% with a £999 fee (60% LTV).

HSBC has also lowered the cost of residential and buy-to-let fixed rate deals across its range by up to 0.35 percentage points, effective from 3 September. The new rates and deals, available through brokers, will be unveiled tomorrow and are expected to be highly competitive.

Among the highlights is a two-year fixed rate for remortgage at 4.34% with a £999 fee (60% LTV) and a five-year remortgage rate at 4.17% at 75% LTV, also with a £999 fee.

The bank’s lowest rate is still its 60% LTV five-year residential purchase mortgage at 3.84% (this was unchanged in the latest round of cuts), but HSBC is now also offering a purchase rate of 3.99% at 75% LTV.

Nick Mendes, at broker John Charcol, said: “Before this morning, competition among lenders had shown signs of easing slightly, as they looked to manage their pipelines and strike a balance between winning business and maintaining service levels. But Monday started off positively with HSBC, NatWest, and Barclays all announcing rate reductions. NatWest has led the way, decreasing its purchase deals to a table-topping 3.77%.

“The Bank of England is likely to hold rates later this month, even as the Federal Reserve is expected to make a reduction. With inflation expected to remain slightly above their comfort level, the monetary policy committee will likely adopt a wait-and-see approach, recognising that the impact of the previous reduction on inflation will not be immediate. 

“While rates are projected to fall later this year to around 4.75%, a more significant reduction to 4% may not occur until 2025.”

29 August 2024: TSB Among Latest To Peg Down Costs

TSB has cut selected mortgage rates for new customers by up to 0.45 percentage points, writes Jo Thornhill. The lender is hot on the heels of a string of other major lenders to reduce costs this week.

The lender has reduced two- and three-year residential remortgage fixed rates and also cut selected buy-to-let fixed rates by up to 0.15 percentage points. 

At the same time it has reduced a range of its residential product transfer fixed rate deals, for existing customers, by up to 0.5 percentage points. All new rates and deals will be live on TSB’s website and available through brokers from tomorrow (30 August).

Clydesdale Bank, part of Virgin Money group, has cut selected two and five-year fixed rate deals by up to 0.46 percentage points, effective from 30 August. 

The lender is offering a five-year fixed rate for remortgage, exclusively through brokers, at 3.99% with a £1,499 fee, for borrowers with at least 35% equity in their property (65% LTV). 

Precise Mortgages, the specialist lender who can help non-standard borrowers (such as those with bad credit or irregular income), has relaunched its residential loan range and slashed the cost of deals by up to 1.05 percentage points. 

Five-year residential fixed rates up to 75% loan to value start from 5.19% with a 1% fee. Precise has also cut BTL fixed rates by up to 0.25 percentage points. 

Lloyds Bank and Halifax, which are part of the same banking group, have launched a new ‘first-time buyer boost’, which allows buyers with lower household incomes and smaller deposits to borrow up to 5.5 times gross annual income.

To qualify for the maximum income multiple, borrowers need to apply for a first-time buyer mortgage with Lloyds or Halifax, have a total household income of at least £50,000, plus a cash deposit of at least 10% of the purchase price (90% loan to value).

Previously the banks would only lend 5.5 times income when households earned a gross £75,000 and only up to a maximum of 75% of the property value.

Broker Nick Mendes at John Charcol said: “Halifax’s lower income threshold of £50,000, along with its competitive criteria and rates, demonstrates how lenders are continually adapting to attract borrowers, making it a strong choice for many first-time buyers.”

The ‘boost’ offer isn’t available on shared ownership or shared equity mortgage loans.

28 August 2024: Virgin, MPowered Announce Further Reductions 

Virgin Money has cut selected fixed rate deals by up to 0.28 percentage points, effective from tomorrow, 29 August, writes Jo Thornhill.

MPowered Mortgages has also reduced a range of its fixed rate mortgage deals. It marks its fourth rate cut this month and takes the lenders total reductions in August to 0.36 percentage points.

Competition in the fixed rate mortgage market has intensified over the past week as lenders have made significant cuts to the cost of borrowing, including pushing five-year fixed rates under 4% for the first time in at least six months (see stories below).

Virgin’s latest cuts predominantly effect purchase deals, available through brokers, at higher loan to value ratios. 

It is offering a two-year fixed rate at 4.74% with a £999 fee for borrowers with a 15% cash deposit (85% LTV), for example, and a five-year purchase deal at 4.32% with a £999 fee at 80% LTV.

Other highlights include a five-year deal for purchase at 5.14% for borrowers with just a 5% deposit (95% LTV). This deal has no product fee and includes £300 cashback on completion.

The lender has also cut some selected buy-to-let (BTL) rates by up to 0.14 percentage points, and BTL and residential product transfer deals by up to 0.15 percentage points, for existing customers. The lender is offering a five-year fixed BTL deal for purchase (60% LTV) at 3.88% with a 3% fee.

MPowered Mortgages has focused its reductions on a number of core residential borrowing deals for two, three and five-year fixed rates between 60% loan to value and 80% LTV.

Among its new deals, available through brokers, is a two-year fixed rate for purchase at 4.57% with a £999 fee and a fee-free five-year fixed rate for remortgage at 4.30%. Both deals require a 40% deposit.

However, despite continued cuts to fixed rates across the market, experts predict the Bank of England’s Monetary Policy Committee won’t reduce interest rates at its next meeting on 19 September, having cut Bank Rate from 5.25% to 5% on 1 August. 

This is largely due to a small rise in inflation this month, which was recorded at 2.2% in the year to July, up from the Bank’s target 2% in June.

Stuart Cheetham, chief executive at MPowered Mortgages said: “Looking ahead, we don’t expect any significant changes in mortgage rates in the short term given, that a September cut in the Bank of England Bank Rate now seems unlikely and future potential cuts are already priced in.”

22 August 2024: Small Deposit Mortgages Benefit

Yorkshire building society has cut selected fixed rate deals by up to 0.2 percentage points, following the lead of other major lenders who have slashed rates this week, writes Jo Thornhill.

Halifax for Intermediaries has also reduced the cost of selected residential remortgage deals. The new rates include a five-year fixed rate at 4.02% and a two-year equivalent deal at 4.37%. Both deals have a £999 product fee and require borrowers to have 40% equity in their home (60% loan to value).

Among Yorkshire’s reductions is a cut to the cost of its £5,000 deposit mortgage for first-time buyers from 6.39% to 6.24%. The five-year fixed rate deal has no fee and is available for FTB buying a property worth up to £500,000 with a minimum £5,000 cash deposit.

Other highlights include a two-year fixed rate for remortgage at 4.39% with a £1,495 fee for homeowners with 25% equity in their property. An equivalent three-year deal is available at 4.34% (also 75% LTV).

There is also a five-year fixed rate for home purchase for buyers with a 10% cash deposit at 5.24%. There is no product fee and buyers will get £2,000 back on completion.

Accord, part of Yorkshire building society, has cut residential fixed rates by up to 0.35 percentage points. It has a five-year fixed rate for home purchase at 4.3% with a £1,999 fee, available to borrowers with at least a 25% cash deposit, plus a three-year purchase deal at 4.92% with a £999 fee for borrowers with at 20% deposit.

Leeds building society has reduced fixed rates for new and existing customers by up to 0.35 percentage points. Among the highlights is a five-year fixed rate deal for residential purchase or remortgage at 4.09% for new customers with at least a 25% deposit or equity (75% LTV). The deal has a £999 fee, or there is a fee-free option at 4.22%.

Furness building society has cut residential and BTL fixed rates by up to 0.35 percentage points. It is offering a five-year fix for residential purchase and remortgage at 4.54% with a £999 fee (80% LTV) and a two-year deal at 5.99% at 95% LTV, also with a £999 fee.

21 August 2024: Nationwide Offering Cheapest Five-Year Rates

Nationwide building society has announced further reductions to its fixed rate mortgages, to offer a market-leading five-year fixed rate priced at 3.78%, writes Jo Thormhill.

The deal, for residential home purchase, has a £1,499 fee and is only available to home buyers with a 40% cash deposit (60% loan to value) who are borrowing a minimum loan amount of £300,000. It marks a reduction of 0.26 percentage points on its previous equivalent deal.

Brokers are waiting to find out if lenders – in particular Barclays, HSBC and NatWest – respond by also reducing fixed rates further. The high street lenders have been battling it out at the top of the five-year fixed rate best buy tables for the past week.

Nationwide has also reduced remortgage rates to offer the first sub-4% deal since February this year. The five-year fix at 3.99% (60% LTV) comes with a £999 fee and is market-leading.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said the deal was ‘great news’. He said: “Until now, lenders have been targeting home movers with sub-4% rates but competition among the ‘big six’ lenders is driving rates lower and now those remortgaging are also seeing the benefit.

“With markets expecting further rate cuts, we could see a 3.5% five-year fix by Christmas, which will be a massive psychological boost for the market.”

Among its other new deals Nationwide is offering a two-year fixed rate for purchase at 4.15% with a £999 fee at 60% LTV. There is also a five-year rate at 4.09% for house purchase, with no product fee, at 75% LTV. 

Nationwide has cut product transfer deals for existing customers by up to 0.25 percentage points and deals for existing customers looking to move home by up to 0.26 percentage points.

Nick Mendes, broker at John Charcol commented: “Nationwide has pulled out all the stops with their latest rate cuts, making a bold statement in the mortgage market by slashing rates. This positions them as a strong competitor, particularly with their lowest rate now at an impressive 3.78%. 

“Whether you’re a new or existing customer, first-time buyer, or looking to remortgage, Nationwide is offering competitive rates across the board.”

Earlier in the day HSBC unveiled its latest fixed rate mortgage deals after announcing rate cuts yesterday (see stories below).

The lender is offering a five-year fixed rate for residential purchase priced at 3.81% with a £1,499 fee. However, the deal is only available to HSBC Premier banking customers who have at least a 40% deposit (60% LTV).

The bank’s equivalent five-year fixed rate for purchase, which is open to all borrowers, is now priced at 3.84%. But this is now trumped by Nationwide’s five-year fix at 3.83% with a £999 fee.

NatWest is offering a deal for home purchase at 3.83% with a £1,495 fee, and Barclays has a similar deal at 3.84%, but with a lower £899 fee. 

NatWest also made further rate reductions, which will come into effect from tomorrow (22 August). Among the new deals is a five-year fixed rate for remortgage at 4% with a £1,495 fee (60% LTV) and a fee-free two-year fixed rate for remortgage at 4.75% (60% LTV) with £250 cashback on completion. 

But at the same time the bank has increased the cost of selected deals across higher loan to value ratios. For example, its two-year fixed rate for home purchase at 90% LTV has been pushed up from 5.23% to 5.35%. This deal has a £995 fee. The bank’s five-year fee-free fixed rate for remortgage, also at 90% LTV, is now priced at 5.23%, up from 5.18%.

20 August 2024: HSBC To Challenge Cheapest Five-Year Rates

Barclays, HSBC and TSB have all announced fixed rate cuts as competition in the mortgage market intensifies, writes Jo Thornhill.

HSBC said it will make rate cuts across a broad range of fixed rate deals, available through brokers, at various loan to value (LTV) ratios.

The extent of the reductions as well as the new deals will be unveiled tomorrow, when they will also take effect but brokers expect them to be highly competitive. HSBC is already offering a five-year fixed rate for home purchase at 3.95% with a £999 fee at 60% LTV.

In the last week, both Nationwide building society and NatWest have cut their equivalent deals to 3.83% (see stories below), which may have prompted this latest repricing by HSBC to move closer to the best buys.

Nick Mendes, a mortgage broker at John Charcol said: “HSBC’s recent repricing move comes as no surprise, following similar actions from other major high street lenders. Given the competitive nature of the mortgage market, it was only a matter of time before HSBC adjusted its rates in response to the broader market trends.

“This move is strategically aligned with the bank’s efforts to remain competitive and potentially position itself as a new best-buy.”

TSB has made further rate cuts of up to 0.25 percentage points across its residential borrowing range, also effective from 21 August. It follows its announcement of cuts across standard residential mortgages, available through brokers of up to 0.2 percentage points, which the bank made just yesterday.

But while many lenders are battling for the lowest rates in the 60% loan to value ratio bracket, TSB has focused its efforts in being more competitive at higher LTVs. 

For example, its five-year fixed rate for first-time buyers and home movers with a 20% cash deposit is currently at 5.04% with a £995 fee. But this could fall to 4.79% if the deal receives the full 0.25 percentage point cut tomorrow.

TSB will unveil its latest rates and deals online tomorrow (21 August). 

Barclays has cut selected residential fixed rate deals by up to 0.15 percentage points for existing borrowers with at least a 15% equity (85% loan to value). It is offering a product transfer five-year fixed rate deal at 4.79% with a £999 fee.

The Mortgage Works, the specialist lending arm of Nationwide building society, has cut selected buy-to-let fixed rates by up to 0.1 percentage points effective from 21 August. It is offering a one-year fixed rate for standard BTL purchase or remortgage at 3.49% with a 2% fee, for landlords with at least 25% equity in their investment property (75% LTV). It also has a five-year fixed rate at 4.29% (also at 75% LTV) with a £1,495 fee or a two-year equivalent deal at 4.64%.

19 August 2024: NatWest Cuts Five-Year Fix To Match Nationwide

NatWest has reduced the rate on its five-year fixed rate for home purchase from 3.89% to 3.83% to rival the same market-leading deal offered by Nationwide Building Society, writes Jo Thornhill.

Both deals are available to home buyers and movers with at least a 40% deposit. But NatWest’s offering must be applied for and managed exclusively through the lender’s website and is not available through mortgage brokers. It comes with a £1,495 arrangement fee. 

Nationwide’s 3.83% five-year fixed rate for home purchase has a £1,499 fee and minimum lending requirement of £300,000. It is available both direct and through brokers.

Elsewhere, TSB has cut the cost of its fixed rate deals by up to 0.35 percentage points on its affordable housing mortgage ranges, and by up to 0.2 percentage points across residential purchase and remortgage deals.

The bank is offering a five-year fixed rate for remortgage at 4.89% (with a 25% deposit) with a £995 fee and a two-year equivalent deal at 5.34%.

TSB’s three-year fixed remortgage rates now start at 4.58% with a £999 fee or 4.78% with no fee (both deals at 60% LTV).

Virgin Money has lowered selected buy-to-let fixed rates, available through brokers, by up to 0.15 percentage points, effective from 20 August. It is offering a five-year fixed rate for BTL remortgage at 4.31% for borrowers with at least 40% deposit (60% LTV) with a £2,195 fee. The bank is also offering a similar five-year fix for BTL purchase or remortgage, but with a 3% product fee, priced at 3.90% (60% LTV).

The lender has also cut BTL product transfer rates, for existing customers looking for a new deal, by 0.15 percentage points. Five-year fixed rate deals with a £995 fee (at 60% LTV) start from 4.17%.

Halifax has cut its product transfer rates for existing customers, including deals for further advance, by up to 0.32 percentage points. The new rates and deals, available through brokers, will be unveiled and effective from 20 August.

14 August 2024: Competition ‘Most Intense For 30 Years’

MPowered Mortgages and Clydesdale Bank, part of Virgin Money group, are the latest lenders to cut fixed rate deals as the latest housing market and inflation data reveals an increasingly positive outlook, writes Jo Thornhill.

MPowered Mortgages has cut selected two, three and five-year fixed rate deals, up to 80% loan to value, by up to 0.22 percentage points. Among its deals, available through brokers, the lender is offering a five-year fixed rate for home purchase at 4.01% with a £999 fee for borrowers with at least a 40% cash deposit.

The lender’s two-year fixed rates for remortgage start from 4.6% with a £999 fee (at 60% LTV). It has also cut its standard variable rate, the rate all customers revert to after their fixed rate period ends unless they switch to a new deal, from 8.74% to 7.49%.

Clydesdale Bank has cut selected two and five-year fixed rates, available through brokers, by up to 0.3 percentage points, effective from Thursday (15 August). It is offering five-year fixed rate deals for home purchase from 4.11% with a £999 fee (65% LTV). Broker exclusive remortgage deals start from 4.37% for a five-year fixed rate.

The reductions are the latest of several made by major lenders in the past few days and weeks, as signs point towards a stabilising market.

Data published today by the Office for National Statistics (ONS) showed that annual inflation in July climbed less than many expected to 2.2% (from its target 2% in June), while house prices rose by 2.7% – the fourth consecutive annual rise.

The Bank of England cut interest rates on 1 August from 5.25% down to 5%.

Peter Stimson at MPowered Mortgages commented: “The current lending environment is nothing short of cut-throat. Competition between lenders is the most intense I have seen in the last 30 years.”

13 August 2024: Rates On Longer-Term Fixes Down To 3.83%

Nationwide building society has trimmed the cost of its fixed rate mortgage deals by up to 0.2 percentage points, creating a new five-year fixed deal for home movers priced at leading 3.83%, writes Jo Thornhill.

The mutual’s new deals, available from tomorrow (Wednesday,14 August), include lower rates across its two, three, and five-year fixed rates for residential borrowing.

It follows significant rate cuts by major lenders in recent days, including Halifax, NatWest, HSBC, first direct and Virgin Money (see stories below). 

To date, the lowest five-year rate for home purchase, available from Barclays, had been cut to 3.84% (or 3.83% for Premier current account customers) for borrowers with at least a 40% cash deposit for a £899 fee.

But Nationwide has pushed its way to the top of the rate tables with the new deal which is available to new and existing customers moving home with a 40% deposit. However, the 3.83% rate must be set against a higher fee of £1,499 and a minimum lending requirement of £300,000. 

Virgin is still offering the most competitive five-year fix for smaller deposits with its 4.99% deal available at a 75% loan-to-value and a £995 fee.

Among its other new deals, Nationwide is offering a five-year fixed rate for remortgage at 4.2% and an equivalent two-year deal at 4.57%, both of which charge a £999 fee and require a 40% deposit.

Co-operative Bank for Intermediaries has cut two and five-year fixed rates for residential purchase and remortgage, effective from Thursday (15 August). 

The bank is currently offering (before its rate cut) a five-year fixed rate for purchase or remortgage at 4.32% with a £999 fee (60% loan to value) and a two-year equivalent deal at 4.74%. The bank’s new rates and deals will be unveiled on Thursday.

Aldermore has cut its fixed rates by up to 0.5 percentage points on its residential deals and by up to 0.2 percentage points for buy-to-let (BTL) borrowers. 

It is also launching two and three-year fixed rate limited edition residential deals with a one percentage point discount off its reversionary rate (currently at 6.23% up to 80% LTV and 6.98% up to 90% LTV).

Among its other residential deals Aldermore is offering a fee-free five-year fixed rate deal for home purchase or remortgage for borrowers with at least a 25% cash deposit (75% LTV ) at 5.34%.

For BTL landlords with single residential investment properties, Aldermore has a two-year fixed rate deal for purchase and remortgage at 5.09% (75% LTV) with a 3% product fee.

12 August 2024: NatWest Unveils 3.89% Deal With Hefty Fee

Home purchasers looking to fix their rate for the next five years will have a greater choice of sub-4% deals from tomorrow, writes Laura Howard. 

NatWest and Virgin are entering the frame with competitive deals following moves by HSBC and its subsidiary first direct to breach the 4% barrier last week (see stories below).

Virgin will peg down five-year fixed-rate cost by 0.21 basis points to create a 3.99% deal with a £995 fee. The deal requires a minimum deposit of 25%, not the 40% required by its competitors. It also offers buyers £300 cashback.

NatWest has decreased the cost of its five-year fix (via brokers) by 14 basis points to a cheaper 3.89% but with a higher fee of £1,495. Last week it launched a non-broker 5-year deal at 3.97%, again with a 40% deposit required.

Nicholas Mendes at broker John Charcol commented: “Virgin’s launch of a 3.99% mortgage at 75% loan to value marks a significant moment in the current mortgage market. When lenders feel secure about the economic landscape, they can price their mortgages more competitively, as we’re seeing now.

“This move by Virgin could trigger a chain reaction among other high street lenders, not just in terms of rates but also in lending criteria, which could become the next area of competition.”

Virgin is also pegging down the cost of selected remortgage fixed rates by up to 0.20 percentage points. It means that two-year fixed rates will start from 4.40% (for a £995 fee), while the fee-saver equivalent will be reduced by 0.18 basis points, starting at 4.77%. Both deals will require a 40% deposit.

Santander has also confirmed it will peg down costs of selected residential fixed rate mortgages for new customers from tomorrow, by up to 0.19%. 

For existing customers looking to transfer to a new deal, costs will be cut by up to 0.27%.

Buy-to-let mortgage costs will be cut by up to 0.15% for both new and existing customers, while the cost of more specialist new-build mortgage deals for new customers will also be slightly trimmed by up to 0.07%.

The final costs of the respective deals will be confirmed tomorrow when Santander will also introduce a new 10-year fixed deal, available for both purchase and remortgage.

As well as its reduced 5-year fixed rate, NatWest announced a raft of other cuts to its new business range. They include 20 basis points off the cost of its two-year fixed rate for purchases down to 4.28%. The deal requires a 40% deposit and comes with a £1,495 fee.

The three banks are the latest in a line of lenders to reduce rates and introduce new cheaper deals following the cut in interest rates from 5.25% to 5% on 1 August. 

9 August 2024: 5-Year Fix Requires 40% Deposit, £999 Fee

HSBC, one of the UK’s biggest mortgage lenders, has launched a sub-4% deal in response to similar moves by NatWest and Nationwide last week.

At 3.95%, HSBC’s five-year fixed-rate offer is among the cheapest currently available (see first direct offer later in this story), prompting speculation that other lenders will follow suit in the wake of the cut to the Bank of England Bank Rate – from 5.25% to 5% – at the beginning of this month.

Nicholas Mendes at broker John Charcol said: “This puts HSBC in a prime position in the market. Next, we expect similar moves from Santander, Halifax, and Barclays. August has started with strong competitive momentum.”

The HSBC deal requires a substantial deposit along with a booking fee, although cashback is also available on completion for some categories of borrower.

To get the 3.95% rate, first-time buyers with 40% deposit (60% LTV) must pay a £999 fee. Cashback is £350.

First-time buyers able to access HSBC’s Energy Efficient Homes (EEH) mortgage range who have the same deposit and pay the same fee qualify for £1,600 cashback.

For home movers with a 60% deposit, the fee is £999 but there is no cashback payable on standard mortgages, but EEH deals on these terms attract cashback of £1,250.

Existing customers borrowing more or switching loan with 60% deposit will pay £999 but receive no cashback.

HSBC subsidiary first direct has announced mortgage rate reductions of up to 0.30 percentage points, reducing interest rates across its entire range of two, three and five-year fixed rate mortgages and launching three products priced at 3.89%.

The 3.89% rate is available on the 60% LTV 5-Year Fixed Standard across three buyer categories: first-time buyers, home movers and existing customers looking to switch.

Rate cuts have been applied to over 100 products, with most mortgages now priced under 5%.

In the two-year fixed category, the range starts at 4.29% on the 60% LTV 5-Year Fixed Standard, which is also available as a three-year fix, starting at 4.19%.

The biggest rate reduction is on the 3-Year Fixed Standard available to first-time buyers, home movers and existing customers, now at 4.19%, down from 4.49%.

Meanwhile, NatWest has launched a sub-4% fix for customers who bypass mortgage brokers and go direct to the bank instead. The 3.97% deal is available online only, to borrowers with at least a 40% deposit (60% LTV) willing to lock in for five years, and comes with a fee of £1,495 – though NatWest does pay the valuation fee for you.

Getting out of the deal early will cost borrowers an early repayment charge of 4.5% in the first year, 4.25% in year two, 4% in year three, 2.5% in year four and 1% in the final year. Once the deal expires, those who don’t remortgage will fall onto NatWest’s standard variable rate of 8.24%.

1 August 2024: Yorkshire BS, Accord, MPowered Announce Cuts

Yorkshire building society has cut fixed rate residential mortgage deals across its range by up to 0.25 percentage points, coinciding with the first cut to Bank Rate in more than four years, writes Jo Thornhill.

Yorkshire is offering a competitive two-year fixed rate for home purchase at 4.74% with a £495 fee and £250 cashback, for buyers with at least a 25% cash deposit.

The mutual lender has an equivalent two-year deal for remortgage borrowers with 25% equity in their property at 4.79%, also with a £495 fee and £250 cashback.

The rate reductions come as the Bank of England reduced the Bank Rate today from 5.25% to 5% in welcome news for borrowers. Bank Rate had been at a 16-year high of 5.25% since August last year. 

While commentators are not expecting today’s cut to signal a campaign of further rate reductions, it should pave the way for cheaper fixed and tracker rate mortgages.

Accord, the specialist lending arm of Yorkshire building society, has also nudged down its selected residential fixed rates by up to 0.25 percentage points, effective from 2 August. It is offering a fee-free five-year fixed rate deal for home purchase at 5.07% (down from 5.27%) for borrowers with a 10% cash deposit (90% LTV).

MPowered Mortgages has cut selected residential two-, three- and five-year fixed rates for borrowers with between 40% and 20% equity or cash deposit (60% LTV to 80% LTV). Among its new deals is a five-year fixed rate for purchase at 4.14% with a £999 fee (at 60% LTV).

David Hollingworth, associate director at broker L&C Mortgages, said: “Fixed rates have been edging down recently with small but frequent cuts helping to nudge five-year deals close to and even under 4%. 

“Today’s Bank of England interest rate decision to cut a little sooner than many had previously anticipated should only help to add further weight to those reductions. 

“We can therefore expect to see further pricing improvements in fixed rates, as lenders continue to fight hard to gain a share in a very competitive market.” LTV, which has been reduced by the full 0.17 percentage points from 5.16% to 4.99%. This deal has a £490 fee.

MPowered Mortgages has cut its two-year fixed rate mortgage deals for residential purchase by up to 0.15 percentage points. It is offering rates from 4.63% with a £999 fee (60% LTV), or from 4.89% with no fee.

Virgin Money (including Clydesdale Bank) has cut its standard variable rate (the interest rate borrowers revert to after a fixed or tracker deal comes to an end unless they switch to a new deal) from 9.49% to 9.24%. It is one of the highest SVRs on the market. The market average SVR is 7.87%, according to Better.co.uk.