UK mortgage rate & interest-rate news
Bank of England decisions, mortgage pricing moves and everything affecting the cost of borrowing.
Mortgage and interest-rate news matters because it changes what buyers can afford and what sellers can realistically ask. Every rate move, pricing change and Bank of England decision that lands in the UK property market gets covered here in plain English. Scored by how much it actually matters to buyers, sellers and the wider market.
Latest rates stories
41 stories- medium · 5/920 Jul 2026
Barclays cuts fixed rates by up to 66bps as Nationwide raises selected deals, with swaps back above 4%
Barclays has cut two-year fixes by up to 66bps — its fee-free 90% LTV deal now 4.79% — while Nationwide moved the other way, raising selected fixed and tracker rates by up to 0.35%. The split follows swap rates rebounding after briefly dipping below 4% earlier in July, with two-year swaps back near 4.18% amid Middle East tensions. For higher-LTV buyers some fixes are cheaper this week, but the direction is no longer one-way; for sellers, borrowing conditions are steady rather than easing. This is repricing, not a clean downward trend.
Source: Mortgage Introducer
- medium · 6/916 Jul 2026
NatWest lifts fixed rates up to 27bps from 17 July as lenders reverse July's price war
NatWest is raising selected fixed rates by up to 27bps from 17 July, following increases from Barclays, Nationwide, Coventry and Virgin Money. Swap rates have climbed back above 4% on renewed Middle East tensions, lifting lenders' funding costs and reversing June's run of cuts. For buyers, some of the sub-4.3% deals from the price war are being pulled, so those mid-application may want to secure a rate soon; for sellers, dearer borrowing modestly trims what buyers can afford. This is a repricing off a low base, not a sharp reversal — fixes remain below last autumn's levels.
Source: Mortgage Solutions
- medium · 6/915 Jul 2026
Barclays cuts rates by up to 66bps but Nationwide raises fixes as swaps climb back above 4%
Barclays cut selected residential rates by up to 0.66% from 16 July, but Nationwide went the other way, raising some fixed and tracker deals by up to 0.35% and lifting its two-year fix from 4.19% to 4.54%. The driver is funding costs: two- and five-year swap rates briefly dipped below 4% in early July but have climbed back to around 4.18-4.26% as renewed Middle East tensions unsettle markets, and lenders price off swaps. For buyers, the wave of cuts seen earlier this month has stalled and brokers are advising securing a rate rather than waiting for further falls; for sellers, affordability has stopped improving week on week. This is marginal repricing, not a Bank Rate move - fixes remain well below last year's levels and could ease again if swaps settle.
Source: Mortgage Introducer
- high · 7/914 Jul 2026
Average two- and five-year fixed rates both fall to 5.52%, lowest since March
Moneyfacts data out on 14 July puts average two- and five-year fixed rates both at 5.52%, down 0.16 and 0.11 percentage points — the largest monthly fall since October 2024. Lenders are passing on June's lower swap rates. It bites where it matters: 60% LTV two-year deals now average 4.97%, and 95% LTV five-year deals sit below 6% for the first time since March. For buyers that is a genuine affordability shift; for sellers, a wider buyer pool. The Bank's 30 July decision could stall it.
Source: PropertyWire (Moneyfacts data)
- medium · 6/99 Jul 2026
NatWest, Landbay and Molo cut mortgage rates on 9 July as lender competition intensifies
On 9 July, NatWest, Landbay and Molo became the latest lenders to cut fixed mortgage rates, after six lenders repriced within 24 hours earlier in the week. The cuts track falling swap rates, which lower lenders funding costs and sharpen competition. For buyers, that means slightly cheaper payments and more sub-4.4% five-year fixes; for sellers, firmer affordability can support demand. But this is competitive repricing, not a base-rate cut — the Bank holds at 3.75% until 30 July.
Source: Mortgage Finance Gazette
- high · 7/97 Jul 2026
Six lenders cut mortgage rates in 24 hours as swap rates fall below 4%
Nationwide, Virgin Money, BM Solutions, Halifax, Kensington and Lloyds all repriced within 24 hours from 7 July, with cuts of up to 0.19% on fixed deals. Two-to-five-year swap rates — the funding costs behind fixed mortgages — have dropped below 4%, down from around 4.16% at the start of June. For buyers and remortgagers, cheaper fixed deals are landing week by week, with sub-4% headline rates edging closer. The Bank of England is still holding at 3.75%, so this is lender competition on funding costs, not a rate-cutting cycle.
Source: PropertyWire
- medium · 5/96 Jul 2026
Nationwide, Virgin Money and HSBC cut fixed mortgage rates by up to 0.19% as summer repricing spreads
Nationwide cut fixed rates by up to 0.19% from 6 July, with Virgin Money down by up to 0.16%, HSBC by up to 0.16% and Accord trimming residential deals by up to 0.30%. Lenders are competing hard for summer business while markets expect the Bank of England to hold at 3.75% on 30 July. For buyers and remortgagers, sub-4% fixes are reappearing at larger deposits; for sellers, better-financed buyers help underpin demand. These are measured trims, not a step change in affordability.
Source: Mortgage Solutions
- medium · 5/91 Jul 2026
Barclays cuts fixed mortgage rates by up to 13bps from 2 July as Santander and TSB also reprice down
Barclays reduces selected fixed and tracker rates by up to 0.13% from 2 July, its five-year fix at 60% LTV falling to 4.33%, following Santander cuts of up to 0.21% and TSB reductions a day earlier. Softer market rate expectations for the Bank of England's path are feeding through to fixed pricing via swap rates. For buyers, five-year money at 60% LTV now sits in the low 4s, modestly stretching budgets; for sellers, slightly deeper buyer affordability. These are trims, not a step change — pricing remains well above pre-2022 norms.
Source: The Intermediary
- medium · 6/929 Jun 2026
Mortgage rates drift lower as around 20 lenders cut fixed deals, three-year average at 5.28%
Moneyfacts data published on 29 June shows the average three-year fixed rate slipped to 5.28% over the week, with around 20 lenders — Nationwide, NatWest, Barclays, TSB and Santander among them — repricing downwards. The moves track falling swap rates after the Bank of England held Bank Rate at 3.75% on 18 June. For buyers, that means slightly more borrowing headroom; for sellers, marginally steadier demand. This is a modest drift, not a return to sub-4% deals.
Source: Mortgage Strategy (Moneyfacts data)
- low · 4/928 Jun 2026
The Mortgage Works cuts buy-to-let switcher rates by up to 25bps as landlord competition builds
The Mortgage Works cut selected buy-to-let and limited company switcher rates by up to 25bps on 28 June, with a five-year fix now at 4.44% to 65% LTV. The move tracks easing swap rates and sharper competition for landlord remortgage business rather than any base rate change, as the Bank held at 3.75%. For landlords rolling off a fixed deal it trims renewal costs; for the wider market it is a modest easing signal, not a turning point.
Source: Mortgage Soup
- medium · 6/924 Jun 2026
Average two-year fixed holds at 5.37% as lenders price cautiously with Bank Rate at 3.75%
The average two-year fixed mortgage sits at 5.37% across all lenders this week, with the big six closer to 4.74%, while five-year fixes average 5.48% (Mojo/Uswitch data, 24 June). Pricing has held broadly flat since the Bank of England kept Bank Rate at 3.75% on 18 June, as swap-rate volatility linked to Middle East tensions keeps lenders cautious despite earlier cutting momentum. For buyers, borrowing costs are steady rather than easing further; for sellers, it argues for realistic pricing while buyer budgets stay capped. A market holding its breath, not turning.
Source: Uswitch (Mojo Mortgages data)
- medium · 6/922 Jun 2026
Lenders extend June rate cuts: Principality, Kensington and HSBC reprice fixed deals by up to 50bps
On 22 June another wave of lenders trimmed fixed rates — Principality by up to 50bps, Kensington up to 25bps and HSBC up to 10bps — extending a month of cuts that also drew in Barclays and Santander. Swap rates have eased after CPI held at 2.8% in May and the Bank kept Bank Rate at 3.75%, giving lenders room to move. For buyers that means modestly cheaper fixes and some sub-4% deals returning at lower loan-to-values; for sellers, firmer affordability supports demand. This is gradual easing, not a return to pre-2022 pricing.
Source: Mortgage Strategy
- medium · 5/919 Jun 2026
Barclays cuts five-year fixes by up to 33bps as lenders compete through a busy remortgage season
Barclays has cut residential fixed rates by up to 33bps, taking its 60% LTV five-year fix from 4.76% to 4.43%, with Nationwide, Atom and Gen H also trimming over the past week. With Bank Rate held at 3.75%, this reflects easing swap rates and competition ahead of a heavy remortgage season, not a base-rate move. For buyers and remortgagers acting now, monthly costs ease slightly; for sellers, cheaper finance supports demand. Rates still sit well above pre-2022 norms — gentle relief, not cheap money.
Source: Mortgage Introducer
- high · 8/918 Jun 2026
Bank of England holds Bank Rate at 3.75% for a fourth time as lenders keep trimming fixed deals
The Bank of England held Bank Rate at 3.75% on 18 June, its fourth consecutive hold, with inflation expected to stay just below 3% for most of 2026. Even without a base-rate move, easing swap rates have let lenders including NatWest and Barclays keep trimming fixed mortgage deals. For buyers, fixed pricing is drifting down regardless of the hold; for sellers, borrowing costs are easing at the margin, not transforming demand. The hold caps how far those cuts can run.
Source: Bank of England
- medium · 5/910 Jun 2026
HSBC cuts mortgage rates by up to 0.11% across residential and buy-to-let ranges
HSBC reduced rates by up to 0.11% across its residential and buy-to-let fixed and tracker ranges on 10 June, with standard residential fixes now starting at 4.47% against a 3.75% base rate. The move follows a week of repricing by Lloyds, Halifax and NatWest as lenders position ahead of the 18 June Bank Rate decision. For buyers and remortgagers, headline pricing keeps drifting down. These are modest trims, though, and affordability remains stretched.
Source: The Intermediary
- medium · 5/99 Jun 2026
Average two-year fixed rate falls 0.10 points to 5.68% as mortgage choice tops 7,000 for first time since March
Moneyfacts data shows the average two-year fixed rate fell 0.10 percentage points to 5.68% in June — its biggest monthly drop in over a year — with product choice back above 7,000 deals for the first time since March. Swap-rate volatility from the Middle East conflict has eased, so lenders are repricing down as competition returns. For buyers that means more choice and cheaper fixes; for sellers, a deeper pool of mortgage-ready demand. Rates sit well above December levels — recovering choice, not cheap borrowing.
Source: Property Industry Eye
- medium · 6/98 Jun 2026
NatWest cuts mortgage rates for a third time in a fortnight as lenders keep trimming fixed deals
NatWest cut selected residential and buy-to-let rates by up to 15bps from 8 June, its third reduction in a fortnight, with TSB, Halifax and Santander also repricing down. The moves track easing swap rates and competition ahead of remortgage season, not any Bank Rate change, which holds at 3.75%. For buyers, more sub-5% two-year fixes improve affordability at the margin; for sellers, cheaper finance supports demand. But this is margin-trimming, not a base-rate fall, and could stall if swaps turn.
Source: Mortgage Solutions
- medium · 6/95 Jun 2026
Average fixed mortgage rates edge lower again as 14 lenders trim pricing
Moneyfacts data showed the average two-year fix easing to 5.65% and the five-year to 5.61% in the week to 5 June, with 14 lenders cutting rates against one notable rise. The moves track easing swap rates and competition ahead of remortgage season, not a base rate cut — the Bank held at 3.75%. For buyers and remortgagers, deals are inching cheaper; for sellers, easier borrowing supports demand. The falls are modest and could stall if swaps drift back up.
Source: Mortgage Strategy
- high · 7/93 Jun 2026
HSBC joins Halifax, NatWest and Leeds in week-long wave of fixed mortgage rate cuts
HSBC's latest cuts took effect on 3 June, the newest in a week-long wave that has also seen Halifax, Lloyds, Coventry, NatWest and Leeds trim fixed rates. Swap rates have eased as markets settle on Bank Rate holding at 3.75% on 18 June rather than rising. For buyers, monthly budgets stretch a little further; for sellers, firmer affordability supports demand. It is a drift lower, not a return to the cheap rates of recent years.
Source: Mortgage Strategy
- medium · 6/92 Jun 2026
Lenders cut fixed mortgage rates again, with HSBC repricing residential and buy-to-let deals from 3 June
HSBC cut rates across its residential, first-time buyer, remortgage and buy-to-let ranges from 3 June, after Gen H trimmed up to 0.20% on 1 June and Allica and ModaMortgages followed. The moves track easing swap rates - lenders' wholesale funding costs - which had spiked earlier on Middle East tensions. For buyers, that means slightly cheaper fixes to lock in now; for sellers, modest support for demand at the margin. It is a gradual easing, not a sharp fall, and brokers warn the cuts could stall before the Bank of England's 18 June decision.
Source: Mortgage Soup
- medium · 6/930 May 2026
UK lenders trim fixed rates again as swap rate pressure eases
In the week ending 29 May, NatWest cut its 90% LTV two-year fix from 5.56% to 5.35% and Leek Building Society trimmed residential products by up to 20bps, while Newcastle launched a fresh tracker range from 4.55%. Swap rates have eased from their post-Middle East spike, giving lenders modest headroom to reprice. For buyers, the early-month softening continues but only by single basis points; for sellers, affordability is loosening at the margin rather than meaningfully recovering.
Source: Mortgage Introducer
- medium · 5/922 May 2026
TSB, Together, Santander and Skipton trim selected mortgage rates as May repricing wave extends
TSB and Together cut selected fixed-rate mortgages on 22 May, joining Santander's reductions of up to 27 basis points and Skipton's 14bps average trim earlier the same week. These are individual lenders trimming margins where competition is sharpest — not a wholesale repricing on cheaper funding. For buyers and remortgagers, headline pricing eases modestly on selected deals. The caveat: swap rates remain volatile and gains could reverse if energy or inflation data surprise upward.
Source: Mortgage Solutions
- low · 4/918 May 2026
Skipton cuts residential mortgage rates by up to 32bps across 90%, 95% and 100% LTV deals
Skipton Building Society cut rates on its two-, three- and five-year residential fixes from 9am on Tuesday 19 May, with the largest reduction at 32bps and an average of 14bps. The cuts target the higher 90%, 95% and 100% LTV bands where affordability has been tightest. For buyers near the top of their borrowing, that shaves a small but real chunk off monthly costs. With wider rate-cut momentum stalling, this looks like a single-lender push rather than a market-wide shift.
Source: Mortgage Solutions
- medium · 6/916 May 2026
26 UK lenders shift pricing in a week as Moneyfacts says the rate-cut run has stalled
Moneyfacts's latest weekly rate watch (week to 15 May) shows 26 lenders moved pricing — 10 cuts, 8 increases and 12 product refreshes — with the average two-year fix easing slightly while the five-year fix edged up to 5.70%. Swap-rate volatility is splitting the field: larger lenders like NatWest and Santander keep competing hard, while smaller mutuals pass increases through. For buyers, the broad-based cut run that ran through March and April has plainly stalled; sellers should not assume affordability is on its way back. The 20 May CPI print will set the next direction.
Source: Mortgage Strategy
- medium · 6/914 May 2026
Mortgage rate cuts stall as average two-year fix holds at 5.78% and five-year edges up to 5.70%
Moneyfacts said the average UK two-year fixed rate held at 5.78% this week and the five-year nudged up to 5.70%, with Lloyds and Scottish Building Society trimming by up to 24bps but Skipton and United Trust Bank lifting prices, including a 140bps jump at UTB. Swap rates have stopped falling, so lenders are pulling cuts that no longer pay back. For buyers planning to fix, headline rates have settled in the 5.7-5.8% range. April CPI on 20 May and the next Bank of England decision on 18 June will set direction from here.
Source: Mortgage Strategy
- high · 7/912 May 2026
Nationwide cuts fixed mortgage rates by up to 36bps as lenders extend May repricing wave
Nationwide, NatWest, Virgin Money and TMW all trimmed selected fixed rates on 11 and 12 May, with Nationwide leading at cuts of up to 36bps and its five-year fix at 90% loan-to-value now 4.89%. Swap rates have eased rather than collapsed, so this looks like competitive trimming, not a full repricing. For buyers at higher loan-to-value, monthly costs nudge down; for sellers, the bidding pool widens slightly this week. The wave could pause if inflation data pushes swaps back up.
Source: Mortgage Solutions
- medium · 6/911 May 2026
Santander and HSBC lead UK mortgage rate cuts as lenders ease pricing in early May
Santander cut selected fixed, tracker and product transfer rates by up to 50bps from Monday 11 May, following HSBC's reductions of up to 30bps on 8 May. Swap rates have eased as markets digest a Middle East ceasefire after weeks of pricier funding. For buyers this is a modest reopening of pricing; for sellers, slightly better affordability may nudge enquiries back into stale stock. Cuts could stall or reverse if swaps push higher — not a sustained downtrend yet.
Source: Mortgage Introducer
- medium · 5/97 May 2026
HSBC cuts mortgage rates as Foundation and Leek raise specialist deals up to 17bps
HSBC will lower rates across its residential and buy-to-let ranges on 8 May, while Foundation, Leek Building Society, Vida and Interbay are repricing on the same day, with Leek raising holiday-let fixes by up to 17bps and limited-company buy-to-let by up to 15bps. Lenders are not moving in lockstep: mainstream residential pricing is softening, while specialist landlord products are hardening as funding costs and risk views diverge across ranges. For mainstream residential buyers the direction of travel is still mildly favourable, so a short pause to reshop a quote can be worthwhile; for landlords looking at holiday-let or limited-company structures, the window for current pricing closes today. This is product-by-product repricing rather than a coordinated direction shift, and swap rates plus the next MPC meeting on 18 June will set the broader path.
Source: Mortgage Strategy
- medium · 5/97 May 2026
Santander trims selected fixed and tracker rates from today as repricing rolls into a fourth week
Santander reprices selected residential and buy-to-let deals from this morning, cutting up to 0.15% on 10-year first-time buyer fixes and up to 0.23% on selected BTL product transfers, with one 85% LTV FTB two-year fix moving the other way by 0.05%. It is the fourth week of selective trimming since the Bank held Bank Rate at 3.75% on 30 April, with swap rates giving pricing teams room only on the deals where competition is sharpest. For buyers there is fractionally better headline pricing on longer fixes; for sellers it is not enough to change asking-price strategy. Swap rates remain elevated, and a further drift on inflation or energy could pause this run before it builds.
Source: Mortgage Solutions
- medium · 5/95 May 2026
Halifax and BM Solutions trim selected fixed rates by up to 0.25% as funding costs rise
Halifax and BM Solutions both trimmed selected fixed rates by up to 0.25% on 5 May 2026, with the bulk targeting remortgage, product transfer and further-advance products. Funding costs have actually risen and Foundation pulls its entire residential range tomorrow, so brokers are calling this the last leg of cheaper pricing rather than a wider trend. For buyers, today's headline rates may be the floor for now; for sellers, affordability looks set to tighten again before it eases.
Source: Mortgage Strategy
- high · 7/91 May 2026
TSB, Halifax, Santander and HSBC cut fixed mortgage rates by up to 45bps as swap rates ease back from April highs
On Friday 1 May, TSB cut two-year fixed house purchase rates by up to 45bps, Halifax trimmed fixes by up to 35bps and Santander by up to 28bps, with HSBC also repricing. The trigger is five-year swap rates falling back towards 4% from highs near 4.4% in April, giving lenders room to ease pricing. For buyers, that puts Halifax's leading 2-year fix at 4.64% and starts to unwind the affordability hit from the April spike; for sellers, it is the first sign in weeks that conditions are moving the right way for offers. The cuts come off elevated April pricing, not pre-spike levels, and a reversal stays on the table if Middle East-driven inflation fears resurface.
Source: Mortgage Strategy
- high · 8/930 Apr 2026
Bank of England holds Bank Rate at 3.75% in 8-1 vote as Pill dissents for a hike to 4%
The MPC voted 8-1 on 30 April to maintain Bank Rate at 3.75%, with Huw Pill the lone dissenter calling for a 25bps rise to 4%. The Committee cited Middle East energy-price pressure pushing CPI to 3.3% in March, with inflation projected to dip to 3.1% in Q2 before rising back to 3.3% in Q3. The market-implied path now slopes upward, suggesting some increase in Bank Rate this year. For buyers, that pushes the cheap-money window further out; for sellers, expect lender repricing to firm up rather than fall.
Source: Bank of England
- high · 7/929 Apr 2026
Barclays brings back sub-4% deal as HSBC, NatWest and Coventry BS join 30 April rate cut wave
Barclays relaunched a sub-4% mortgage on 29 April, pricing a two-year tracker at 3.96% for Premier purchase borrowers at 75% LTV. HSBC, NatWest and Coventry Building Society followed with cuts of up to 19 basis points across residential and BTL ranges from 30 April. The coordinated easing follows weeks of swap-rate volatility tied to the Iran conflict. For buyers, headline pricing is loosening at the top end; for sellers, it widens the pool of affordable borrowers. The caveat: sub-4% is gated to Premier borrowers, not yet a market-wide return.
Source: Mortgage Solutions
- high · 8/927 Apr 2026
Average UK two-year fixed mortgage rate jumps to 5.81% on 24 April, up from 4.84% in March
Moneyfacts data shows the average two-year fixed mortgage rate hit 5.81% on 24 April, up from 4.84% at the start of March — the sharpest monthly rise since July 2023. The driver is swap rate volatility tied to the Middle East conflict. For buyers, that is roughly £100 a month extra on a £200,000 loan against March pricing. For sellers, expect more cautious offers; economists now see no Bank of England cut until 2027.
Source: Property Industry Eye
- high · 7/922 Apr 2026
HSBC, Santander, Virgin Money and Principality cut fixed rates by up to 45bps as lender repricing accelerates
Virgin Money trimmed fixed rates by up to 45 basis points on 22 April, HSBC and Principality followed with cuts from the next day, and Santander reduced first-time buyer, home mover and remortgage fixes by up to 0.25%, including its 95% LTV three-year deal from 5.55%. Lenders are passing through lower swap rates and competing harder for purchase business after weeks of repricing. For buyers, monthly payments on new fixes are edging down and higher-LTV deals are getting a sharper look. The caveat: Virgin lifted some tracker rates by 25bps on the same day, so this is a fixed-rate story rather than a broad easing.
Source: Mortgage Strategy
- medium · 6/921 Apr 2026
Reuters poll finds economists expect Bank of England to hold rates through 2026
A Reuters poll of economists published yesterday found most expect the Bank of England to leave the base rate unchanged at next week's meeting and through the rest of 2026, even after recent inflation pressure tied to the Iran conflict. For buyers, that means fixed-rate pricing is unlikely to fall sharply in the near term. For sellers, demand levels look set to stay roughly where they are.
Source: Reuters
- high · 7/921 Apr 2026
Barclays cuts mortgage rates by up to 36bps across more than 20 fixed deals
Barclays is cutting more than 20 of its fixed-rate mortgages by up to 36 basis points from today, covering 2- and 5-year deals at a range of loan-to-value bands. It is one of the bigger moves from a major UK lender this month and follows a similar cut from NatWest earlier in the week. For buyers, monthly payments on new fixes drop modestly. For sellers, slightly cheaper borrowing tends to support demand at the margins.
Source: Mortgage Strategy
- medium · 5/920 Apr 2026
NatWest cuts mortgage rates by up to 37bps across residential and buy-to-let
NatWest is cutting mortgage rates by up to 37 basis points, covering both residential and buy-to-let. The biggest move is on its 95% LTV five-year fix, down from 5.76% to 5.39%. It follows HSBC last week. For buyers, it's the first run of meaningful cuts since rates rose in February after the Iran conflict. The picture stays unsettled — swap rates remain higher than the start of the year.
Source: Mortgage Strategy
- medium · 6/918 Apr 2026
Mortgage rates show signs of falling after Iran war peak
Several large UK lenders are cutting mortgage rates this week, with Halifax — the country's biggest lender — among them. Markets eased after geopolitical tensions cooled, pulling down the swap rates that fixed mortgages are priced against. Buyers comparing fixed-rate deals over the next few weeks will see slightly cheaper headline rates. The Bank of England base rate has not moved — this is a market-led shift, and lenders can pull rates back if conditions change.
Source: BBC
- high · 7/918 Apr 2026
Mortgage rates show signs of falling after Iran war peak
Major lenders including Halifax, HSBC and Santander have started cutting fixed mortgage rates as swap rates ease on hopes of a long-term truce in the Iran war. The average two-year fixed rate has edged down from a wartime peak of 5.90% to 5.87%, though still well above the 4.83% seen before the conflict. Around 1,000 fewer deals are available than pre-war, but lenders are offering larger loan amounts.
Source: BBC News
- high · 8/918 Apr 2026
Fixed mortgage rates fall for first time since Iran war peak
Average fixed mortgage rates have fallen for the first time since the spike that followed the Iran war, according to Moneyfacts. HSBC cut some deals by up to 34 basis points last week and several other lenders — Halifax, Atom, Family and Cambridge — followed. For buyers, monthly payments on a new fixed deal are a touch lower. The market reads it as the start of a slow easing, though nothing is guaranteed.
Source: BBC News
Frequently asked about rates
How do Bank of England rate decisions affect UK house prices?
When the Bank of England cuts its base rate, mortgage lenders usually follow with cheaper fixed and tracker products within a few weeks. Cheaper borrowing means buyers can afford higher prices, which tends to support or lift house prices. When rates rise, the reverse happens. Buyers can borrow less, so demand softens and prices can stall or fall. The effect isn't instant, but rate decisions are usually the single biggest short-term influence on UK housing demand.
Why do mortgage rates sometimes move without a Bank of England decision?
Mortgage rates are priced off 'swap rates'. The rate at which banks lend to each other over a set term. Swap rates move every day based on what the market expects the Bank of England to do next, not just what the Bank has already done. So lenders can cut (or raise) rates even if the base rate hasn't moved. Because the market has changed its mind about what's coming.
Does a mortgage rate cut always mean house prices go up?
Not always, but it usually helps. A rate cut makes monthly payments more affordable, so buyers who were priced out can come back in. That typically increases demand faster than supply can respond, which nudges prices up. But if the cut comes at the same time as bad economic news. Rising unemployment, weak wages. Buyer confidence can stay low even as rates fall. Rates are one big lever, not the only one.