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UK Lenders Start Modest Cuts to Fixed Mortgage Rates

Falling swap rates linked to easing Middle East tensions have allowed banks and building societies to trim selected fixed deals.

Overview

  • Nationwide made another reduction to selected fixed products, trimming rates by up to 0.25 percentage points and pricing some fixes as low as 4.19%.
  • Virgin Money followed with cuts of up to 0.20 percentage points across purchase, remortgage and shared‑ownership fixes, while Skipton cut a range of products by an average of about 0.18% and up to 0.40%.
  • Brokers say the repricing is driven by falling swap rates after a calmer period in the Middle East and lower oil prices, and they expect further small reductions if swap rates hold.
  • Experts stress the moves are cautious and competitive rather than broad rate falls, and they warn cuts could be reversed if inflationary pressures or funding costs change.
  • Borrowers are advised to consider locking in a product now because fixed pricing is set off swap rates and many lenders allow you to secure a new deal up to six months before your current rate ends.