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UK Banks Trim Fixed Mortgage Rates as Swaps Ease

The cuts reflect lower swap costs, with staying power tied to the Bank of England's next decision.

Overview

  • HSBC, TSB and Aldermore, which moved on Thursday, announced fresh reductions to selected fixed deals, adding to this week's earlier cuts by Barclays and Skipton.
  • Nationwide, Santander, Halifax, Virgin Money and TSB said rates will fall further from Friday on targeted products for first-time buyers, home movers and landlords.
  • Average pricing ticked lower again, with Moneyfacts showing two‑year fixes at 5.82% and five‑year fixes at 5.72%, still about one percentage point above early March.
  • Barclays cut a two‑year fix for 40%‑deposit borrowers from 4.95% to 4.60%, while Nationwide's lowest two‑year home‑mover fix now stands at 4.50% for a 40% deposit.
  • Lenders cite cheaper swap rates, the market contracts that guide fixed‑rate pricing, though brokers say fresh shocks or a Bank of England rate rise could reverse the cuts.