Major high street banks and building societies are slashing mortgage rates, with prospective homebuyers being urged to "act quickly" before it is too late.
Barclays, NatWest, and Coventry Building Society are the latest lenders to take action and reduce interest rates despite inflationary concerns growing.
In recent years, the Bank of England's Monetary Policy Committee (MPC) has raised and held the base rate to as high as 5.25 per cent in an effort to bring down the consumer price index (CPI) rate.
As inflation has fallen, the UK's central bank has, in turn, reduced the cost of borrowing to 3.75 per cent, but the economic ramifications of the US-Iran war threaten to halt this trend.
Is your banks lashing mortgage rates?
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As of today, Barclays has slashed its mortgage rates across its line of products up to 0.43 percentage points in a major win for customers.
Notably, a 5.85 per cent three-year fixed interest rate for those with a five per cent deposit has been reduced to 5.42 per cent, with a £899 fee.
The bank notes that this means a homeowner with a £200,000 mortgage, which is repaid over 25 years, would see their monthly payment from £1,270 to £1,219.
Joining the lender is NatWest, which has reduced its mortgage rates by up to 0.54 percentage points across the board.
Coventry Building Society has also slashed mortgage rates
| COVENTRY BUILDING SOCIETYLATEST DEVELOPMENTS
Top 10 neighbourhoods with the highest increase in property prices | Online Marketing Survey/ONS/CoPilotThe bank is offering a two-year tracker rate remortgage deal for those with just 20 per cent equity in their home as part of 80 per cent loan-to-value (LTV) deal.
Earlier this week, Coventry Building Society slashed select mortgage rates, with residential and buy-to-let (BTL) rates being reduced by up to 16 basis points.
Speaking to Newspage, EHF Mortgages' managing director Justin Moy, said: "Some significant cuts from a number of high street lenders, as swap rates improve and the likelihood of base rate increases in 2026 recedes.
"But it's so important for borrowers to act 'quickly' just in case, as we have seen so many times this year, rates can increase with little notice."
The central bank has made multiple changes to the base rate | CHAT GPTDariusz Karpowicz, the director at Albion Financial Advice, added: "Welcome news for once. Swaps are easing, base rate fears for 2026 are fading, and the high street has finally taken the hint.
"Barclays, NatWest, and Coventry are all trimming rates, and the timing could not be better with summer and the buying season nearly here.
"A word of caution, though. Cheaper rates have a habit of vanishing as fast as they appear, so do not sit on your hands.
"If you are buying or coming to the end of a deal, get your numbers reviewed now and lock something in while the mood is good. Optimism is lovely, but a secured rate is better."