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Major UK Lenders Cut Fixed Mortgage Rates as U.S. Refinance Wave Builds

Falling swap rates alongside softer inflation are giving lenders room to reprice fixed deals.

Overview

  • Santander and NatWest reduced selected fixed rates by up to 0.36 and 0.21 percentage points respectively, after Barclays and HSBC moved Friday, with NatWest’s two-year fix now 3.77% at 60% LTV with a £1,495 fee.
  • Markets have shifted toward quicker Bank of England easing after September inflation held at 3.8%, and lower swap rates have sparked a fresh bout of price competition among big banks.
  • Regulatory data show 446,169 UK fixed-rate mortgages expire in Q4 2025, concentrating borrower decisions as brokers flag the option to reserve rates ahead of the Nov. 26 Autumn Budget.
  • In the U.S., CME FedWatch put the odds of another Fed cut this week near 97%, though many mortgage offers already reflect that expectation, with the average 30-year rate around 6.19% per Freddie Mac.
  • Refinance activity is up 81% year over year, MBA data show, and analysts say lower borrowing costs could pull more buyers back, potentially tightening supply and supporting prices.