NatWest, Santander and Halifax slash mortgage rates ahead of Bank of England decision

The Bank's Monetary Policy Committee (MPC) is expected to make its first cut to the base rate after holding rates at 5.25 per cent since August 2023.

This will be welcome relief for homeowners and buyers who have been saddled with soaring mortgage repayments in recent years.

So far, Halifax has confirmed a cut to its line of fixed rate mortgages for those looking to purchase property and remortgage which come into effect today.

Similarly, NatWest has slashed interest rates across its fixed mortgage range by up to 0.15 per cent.

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These changes by the bank apply to customers looking to either remortgage and purchasing loans.

Furthermore, Santander has reduced rates of up to 0.20 percentage points across its purchase, remortgage and new build mortgages this week.

On top of this, the lender has cut interest rates across certain buy-to-let loans.

These decisions from the high street banks come after similar mortgage rate reductions from HSBC and Barclays.

Last week, Nationwide Building Society became the first major lender this year to offer a sub-four per cent interest rate.

Currently, the financial institution is providing customers a five-year fixed rate deal worth 3.99 per cent for buyers with a 40 per cent deposit.

As it stands, the average two-year fixed residential mortgage rate is s sitting at 5.77 per cent, based on research conducted by Moneyfacts.

On top of this, the average five-year rate is 5.38 per cent, while the two-year and five-year swap rates are at 4.25 per cent and 3.77 per cent, respectively.

Rachel Springall, finance Expert at Moneyfactscompare, broke down the current state of the mortgage market.

She explained: "A year has now gone by since the Bank of England last increased the base rate, but other influences have been at play to impact the mortgage market.

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"Fixed mortgage rates have been falling at a steady pace, with lenders feeling more encouraged to re-price their deals due to lower swap rates. Consequently, the average rates on a two- and five-year fixed rate mortgage have both decreased month-on month for the first time in six months.

"Waiting six months for rates to fall will no doubt require a lot of patience from borrowers who are counting down the days towards the end of their low-rate fixed deal.

"However, despite the latest falls, borrowers may want to see a bigger injection of rate competition, particularly as rates are higher than they were six months ago.

"Those desperate to secure a new deal for peace of mind could do so a few months before they come off their existing deal, as some lenders will let borrowers do this from three to six months in advance."