Lenders fire up mortgage wars as rates touch 3.5% in big boost to buyers and owners
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Good news for homeowners as mortgage rates fall to 3.5%
- Major lenders, including Santander and Nationwide, have significantly reduced mortgage rates, with some deals now as low as 3.51 per cent.
- The average two- and five-year fixed mortgage deals have dropped below 5 per cent, marking their lowest point since September 2022.
- This reduction is attributed to lenders competing for business in a stalled property market and anticipation of a potential Bank of England base rate cut.
- While the most competitive headline rates often apply to specific loan-to-value arrangements, the overall trend indicates increased choice and improved affordability for consumers.
- Experts forecast that mortgage rates will continue to decline into 2026, with sub-4 per cent mortgages becoming more widely available, despite regional variations in property price movements.