Some mortgage lenders have announced notable mortgage rate cuts.
Halifax is offering a two-year fixed rate of 3.73% (down from 3.74%). NatWest has a two-year deal for 3.51% (down from 3.57%), but this has a £1,495 product fee. Nationwide has a 3.72% fixed-rate deal, while Barclays offers a two-year fixed-rate mortgage at 3.57%.
Lloyds Bank has launched an even lower 3.47% two-year fixed rate mortgage, but this deal is exclusively for Club Lloyds banking customers.
In December 2025, the Bank of England cut interest rates from 4% to 3.75%, the lowest rate for nearly three years. The average rate for a two-year fixed mortgage was 4.49% in the third week of January, and for a five-year fixed rate mortgage, the rate was 4.99%. However, these low rates are generally restricted to buyers who have a 25% deposit.
Mortgage rates vary significantly depending on the borrower’s financial status and how much deposit they put down.
Though accurately predicting mortgage rate changes is difficult, financial experts expect mortgage rate levels to remain steady in the short term after the recent cuts, but further cuts could happen later in the year by small amounts. The current year, 2026, is currently being seen as a good time to purchase a house using a mortgage at reasonable interest rates.
If you have a mortgage offer and have found a home to buy, talk to a leading Merseyside removal company like Merseyside Movers & Storers. We’ll take care of safely and securely moving your belongings to your new home.
