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.
What this means for…
Buyers· 3/3
Sellers· 2/3
Wider market· 2/3
Each axis scored 1 (minor) to 3 (major). Total 7/9.
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5 Oct 2026 · Impact 8/9
Average five-year fixed mortgage rate hits 6% for the first time since 2023, as sub-5% deals fall from 1,494 to nine
2 Oct 2026 · Impact 7/9
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1 Oct 2026 · Impact 6/9
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