Major UK Lenders Slash Mortgage Rates, Offering Relief to Borrowers with Deals as Low as 3.71%

Mortgage Rates Drop in the UK

Several major UK lenders have cut mortgage rates this week, offering some relief to borrowers. NatWest launched a five-year fixed-rate mortgage at 3.71%, the cheapest currently available, but it requires a 40% deposit and a £1,495 fee.

Barclays also introduced new mortgage products and reduced rates on existing ones. They offer a five-year fixed-rate mortgage at 4.05% for borrowers with a 25% deposit and no product fee.

HSBC UK also announced mortgage rate cuts across its ranges. They now offer a five-year fixed-rate mortgage at 3.84% for borrowers with a 60% loan-to-value ratio (LTV), and 3.99% for borrowers with a 70% or 75% LTV. They also reduced rates on higher LTV mortgages, offering a five-year fixed-rate mortgage at 4.29% for borrowers with an 80% LTV.

According to Moneyfacts, the average two-year fixed homeowner mortgage rate on the market is now 5.55%, down from 5.56% on Monday. The average five-year fixed residential mortgage rate is now 5.19%, down from 5.20% on Monday.

Rachel Springall, a finance expert at Moneyfacts, advises consumers to seek advice to navigate the mortgage market and find the most appropriate deal based on true cost, not just the headline rate.