Overview
- Consumer price inflation eased to 3.6%, and traders now price roughly an 80% chance the Bank of England cuts rates next month.
- Santander leads with a two-year fixed deal at 3.55% for borrowers at around 60% loan-to-value with a £999 fee, alongside a five-year fix from 3.76%.
- Rivals have followed with reductions, including Nationwide’s two-year fixes from 3.64%, Barclays’ five-year at 3.81%, and further cuts signalled by HSBC, plus moves from Halifax and Skipton.
- Brokers say competition extends beyond price to lending criteria, as banks loosen terms to win limited business.
- The most competitive offers target high-deposit borrowers, with average two- and five-year fixed rates still around 4.88% and 4.93% and housing activity muted ahead of the Budget.