With the Bank of England holding the base rate at 4%, lenders are cutting fixed-rate deals and sparking fresh competition across the mortgage market.
Whether you’re remortgaging, buying your first home, or exploring a self build mortgage or renovation mortgage, the window to secure a low rate may be narrower than it looks.
Experts say acting early and locking in now could save borrowers thousands before the market shifts again.
Are mortgage rates going down?
Mortgage rates in the UK have fallen for the third consecutive month, reaching their lowest point since early 2024.
The average two-year fixed rate now sits around 4.44%, down from nearly 5% this time last year, according to Rightmove’s latest data.
Lenders including Halifax, Nationwide and Barclays have launched new sub-4% fixed-rate deals for buyers with strong equity, spurred by easing swap rates and a calmer inflation outlook.
The base rate holds steady — for now
The Bank’s Monetary Policy Committee voted 5–4 in favour of holding the base rate at 4.0%, with four members backing a cut to 3.75%.
Inflation has remained at 3.8% for three consecutive months - almost double the 2% target - prompting policymakers to opt for caution ahead of the Autumn Budget.
Islay Robinson, CEO of Enness Global, says the hold “keeps the economy in a holding pattern at a time when renewed momentum is sorely needed.”
“A modest rate cut would have been a welcome catalyst for growth, improving investment appetite and boosting confidence,” Robinson adds. “The longer the Bank delays, the longer the recovery is likely to be.”
Guy Gittins, CEO of Foxtons, believes stability is no bad thing: “The housing market has shown remarkable resilience throughout 2025, supported by stable demand and improving lending conditions. With the end of the year approaching, we expect this steady performance to continue as buyers and sellers push to complete before the festive period.”
Economists now anticipate a further 0.25% cut early in 2026 if inflation continues to cool, but experts warn that lenders may not wait for official moves before repricing their products.
The best mortgage offers right now
Banks and building societies are already trimming fixed-rate pricing. Current top offers for low-LTV borrowers include:
Lender | Deal Type | Rate | Fee | LTV |
|---|---|---|---|---|
Nationwide | 2-year fix (purchase) | 3.81% | £1,499 | 60% |
Halifax | 2-year fix (remortgage) | 3.84% | £1,999 | 60% |
Barclays | 5-year fix (purchase) | 3.95% | £999 | 75% |
Santander | 2-year fix (remortgage) | 3.89% | £999 | 60% |
Virgin Money | 5-year fix (purchase) | 4.09% | £895 | 85% |
For self-builders and home renovators, falling mortgage rates offer much-needed relief.
Richard Merrett, Managing Director at Alexander Hall, says lenders are adjusting quickly: “We’re seeing lenders alter products and criteria almost weekly to support borrowers. The expanded Mortgage Guarantee Scheme and improved affordability rules are already helping first-time buyers and movers.”
Nick Mendes, mortgage technical manager at John Charcol, adds that “rate reductions are happening daily - sometimes multiple times a week. For borrowers with strong equity, now is one of the best moments in 18 months to act.”
How to lock in a low mortgage rate
With the market entering a rare period of stability, experts say the coming weeks could be a golden opportunity for anyone looking to buy or remortgage.
Experts offer five tips to secure a low mortgage rate:
- Start early - up to six months ahead. Most lenders let you secure a rate offer as far as six months before completion, effectively holding today’s deal against any future rise. David Hollingworth, associate director at L&C Mortgages, says: “That’s effectively a free option on today’s pricing. If rates fall further, you can reapply; if they rise, you’re protected.”
- Use a whole-of-market broker - The best deals aren’t always direct from big banks. Nick Mendes explains: “A whole-of-market broker can access rates and criteria that borrowers can’t get on the high street. We also track daily pricing changes - so if a lender cuts rates mid-application, we can switch you across to capture that saving.”
- Check the total cost, not just the rate - Headline rates can be misleading when paired with high product fees. Richard Merrett says borrowers should always “compare the total cost of borrowing across the full fixed term - not just the rate in isolation.”
- Fix with flexibility - If you expect more cuts over the next year, a shorter fix might make sense. Matt Smith, mortgage expert at Rightmove, advises: “We’ve started to see lenders becoming more competitive, but the pace of reductions is slower than expected. Choosing a flexible product or a shorter-term fix can help you take advantage if rates move again in 2026.
- Get your paperwork ready - In a fast-moving market, the best deals can disappear within hours. Islay Robinson says: “Being prepared isn’t just about paperwork - it’s about timing. The borrowers who have documents ready to go are the ones who actually secure the top rates before they’re withdrawn.”
Mortgage rates are going down, but much of the good news may already be in the price. With the Bank of England holding steady and inflation easing, the market has entered a rare period of calm - and that stability has translated into better deals.
However, as Ben Thompson warns: “Waiting for one or two more base rate cuts is a gamble. If confidence returns and housing demand surges, today’s savings could be wiped out by higher prices tomorrow.”
Whether you're navigating the effects of mortgage rate rises or looking ahead to potential changes in stamp duty, being proactive in your decision-making can help you make the most of current opportunities.
