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UK Mortgage Price War Intensifies as Major Lenders Cut High‑LTV Fixes

Lower swap rates plus expectations of a Bank of England cut are pushing banks to sharpen pricing for first‑time buyers with small deposits.

Overview

  • NatWest cut its zero‑fee two‑year 95% LTV purchase fix from 4.81% to 4.69%, and Barclays reduced its comparable two‑year rate from 4.92% to 4.60%.
  • Santander reduced first‑time buyer fixed deals at 85%–95% LTV by up to 0.32 percentage points, with starting rates around 3.92%.
  • Nationwide lowered selected two‑, three‑ and five‑year fixes by up to 0.16 points last week, taking its lowest two‑year rate to 3.54%.
  • Brokers point to falling two‑ and five‑year swap rates and market bets on a coming Bank of England base rate cut as the catalyst for the new competition.
  • Lenders are prioritising high‑LTV and new‑build buyers while nudging up some lower‑LTV remortgage and home‑mover rates, with up to 1.8 million borrowers due to renew in 2026.