Mortgage Lenders Cut Rates as Market Improves

Mortgage Lenders Cut Rates as Market Improves
Mark Langshaw

Author: Mark Langshaw

Content Manager

Updated: November 14, 2023

Many of the UK’s leading lenders have reduced the interest rates on their mortgage products as the market continues to show signs of steady improvement.

On 10th August, NatWest became the latest major bank to cut its rates, announcing reductions of 0.37% and 0.65% on selected 2 and 5-year fixed-rate deals. HSBC, Halifax, Nationwide, TSB and several other mortgage providers reduced their rates earlier this week.

Mortgage lenders are beginning to feel confident that the market is normalising following an extended period of base rate increases from the Bank of England, which now stand at 14 in a row, leaving at the highest level since the 2008 financial crisis, topping out at 5.25%.

The good news, however, is that forecasts for the base rate’s peak have recently been downgraded, with analysts originally predicting a high of 6% or more. This has now been revised to around 5.75% as there are signs that UK inflation is beginning to fall.

During the second quarter of 2023, the UK economy saw modest growth as its gross domestic product (GDP) rose by 0.2%, keeping recession concerns at bay for now.

Does this mean it’s a good time to apply for a mortgage?

It’s certainly a good time to speak to a mortgage broker to see what your options look like, and you will likely find that they have improved compared to a month or so ago, when average rates on two-year fixed rates hit 6.81% and five-year fixes reached 6.33%.

A mortgage broker can go through all of the latest deals that have hit the market following this wave of rates cuts, and explore which ones you qualify for. Brokers are happy to kick things off with a free, no-obligation chat, so it costs nothing to find out how they can help.

Although many lenders have announced rates cuts, approaching one of them directly is not recommended as that would limit you to just one range of mortgage products. You need a broad overview of the entire market to ensure that you get the best and most suitable mortgage deal for you, which is where a mortgage broker is worth their weight in gold.

The latest mortgage interest rates available

Take a look at our rates table below to get an idea of which deals are currently available.

Lender Product Details
Frosted Rates Image

Looking for more rates and deals?

We can match you with a mortgage broker who can provide you with up-to-date bespoke rates and deals from across the entire market.

Last updated December 2023

Please note that the above rates were accurate at the time of writing, but are always subject to change at the lender’s discretion. Speaking to a mortgage broker is the best way to find the most up-to-date deals.

How Online Mortgage Advisor can help you get the best rate

A mortgage broker can help you access a much wider range of products and interest rates, but not all brokers have the same expertise, and you need to find one who is right for you.

That’s where we come in. We offer a free mortgage broker-matching service that will quickly assess your needs and circumstances to pair you with the advisor who is best placed to secure the right mortgage for you. They will trawl through the latest rates that have just hit the market, secure the best one that you qualify for and help you complete your application.

Make an enquiry with us to kick things off with a free, no-obligation broker consultation.

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