Barclays, HSBC, Halifax, Santander and NatWest all cutting mortgage rates - see best deals

In an update this week, Bank of England governor Andrew Bailey suggested 'more aggressive' rate cuts could be on the way if inflation remains in check

Five major high street mortgage lenders have announced rate cuts as the interest on home loans continues to drop.

Mortgage rates have been coming down steadily over the last few months - sparked by hopes that the Bank of England will continue to cut interest rates. The Bank of England finally reduced its base rate from 5.25% to 5% in its August meeting - although it chose to hold rates at this level, instead of reducing them again, at its last meeting in September.

But in an update this week, Bank of England governor Andrew Bailey suggested “more aggressive” rate cuts could be on the way if inflation remains in check. This will be welcome news for mortgage borrowers, who have been hammered by higher costs over the past two years.

Mortgage rates peaked in the UK in July 2023, with the average two-year fix reaching 6.86%, while the average five-year fix hit 6.35%. In an update today, financial comparison website Moneyfacts revealed the average two-year fix is now 5.38%, while the average five-year fix has fallen to 5.05%.

The absolute lowest two-year fix is 3.89% and the cheapest five-year fixed rate mortgage now sits at 3.69%. But what about for the main high street lenders? Barclays, HSBC, Halifax, Santander and NatWest have all confirmed changes to their mortgage rates this week.

Barclays is now offering a fee-free five-year fix with a rate of 3.92% for those with a 40% deposit, while the rate of its Premier two-year fixed deal has dropped to 3.96% - this comes with a £899 fee. HSBC has cut the rate of all its two-year and five-year fixed mortgages by up to 0.25 percentage points, with a rate of 3.83% on offer for those remortgaging with at least a 40% equity.

Halifax has also announced reductions of up to 0.24 percentage points, while Santander mortgages have dropped by 0.29 percentage points and NatWest has also confirmed cuts.

If you're coming to the end of a fixed-rate mortgage, you can normally lock in a new deal at least three months in advance. Do a search online to compare rates, then speak to a mortgage broker, as they will have access to deals that aren't always available on the open market.

If you're on a tracker or standard variable rate (SVR) mortgage, you can normally switch to a new mortgage whenever you please. Follow the steps above to see what other deals are out there and if you could save money by going elsewhere.

The advantage of a fixed-rate mortgage is that you know how much you will pay each month, for a set period of time - however, you won't benefit from cheaper deals if mortgage rates continue to drop. The market is unpredictable, so no one can be sure how rates will fluctuate over the long-term - and a mortgage is a product that you'll have with you for many years.