Thu, 13 Feb 2025

Thu, 13 Feb 2025 Mortgage rates cut below 4% as competition picks up

It's the first time mortgage deals with rates below 4% have been available since November.

* Two major lenders, Santander and Barclays, launched mortgage deals with interest rates below 4% on Thursday.
* The average rate on a two-year fixed deal across the market is 5.48%, while five-year deals have an average rate of 5.29%.
* These sub-4% deals are not available to all borrowers, particularly first-time buyers, and may come with a hefty fee.
* Nationwide, the UK's biggest building society, will reduce some of its rates on Friday.
* The Bank of England has hinted at further cuts in the base rate, which has given mortgage providers confidence to reduce their own rates.
* More than 800,000 fixed-rate mortgages are expected to expire every year until 2027, potentially leading to higher monthly bills for many homeowners.
* Experts predict that rates for new fixed mortgage deals will continue to fall as lenders follow each other's lead in reducing rates.
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