Mortgage News: Halifax, Nationwide, Santander, TSB Lower Rates Ahead of Bank Rate Decision

Forbes

01-08-2025

Find out what's happening with today's mortgage rates and calculate monthly repayments across a range of different rates and deals.
1 August: 'Cautious optimism' leads to further cuts
Major lenders including Halifax, 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%.
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.
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
17 July: 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.
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
10 July: 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.
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
2 July: 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%.
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
27 June: 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.
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
18 June: Bank of England Expected To Hold Interest 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.'
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
13 June: 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.
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
6 June: 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.
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
22 May: Rising Inflation Could Put 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.'
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
20 May: 100% LTV Deals Offer Gradually 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.'
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
14 May: Two-Year Fixes See Sharpest Price 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.
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
12 May: Number Of Sub-4% Deals Grows For Deposit-Rich Borrowers
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.'
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
7 May: Lenders Expecting Bank Of England Rate Cut Tomorrow
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.
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
2 May: 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.
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
16 April: 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.
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
15 April: 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.
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
10 April: Barclays And 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.'
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
3 April: High Street 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.
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
March 27: Santander, NatWest And TSB Among Lenders To 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.'
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
March 19: 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.'
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
13 March: Market Prepares For Bank Rate Decision Next Week
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.
Free Mortgage Advice
Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage. Compare Mortgages
5 March: Cheapest Fixes On The Market 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