Some lenders still offering sub-5% mortgages

by Aaron Strutt

Jun 26 2023

While most mortgage rates have increased over the last month, some surprisingly cheap deals that undercut the Bank of England base rate are still available. 

A few lenders still offer sub-5% fixes, although they are mainly available to borrowers taking longer-term deals. Some trackers and discounted rates are also below 5% for the moment.

Last week the Bank of England increased the base rate by 0.5% to 5%, the 13^th consecutive rate hike.

For now, the change has not been followed by many banks and building societies raising their rates, although Santander and Virgin Money have raised the price of their mortgages this week.  

Aaron Strutt, product director at Trinity Financial, says: "We have been telling our clients that they need to act quickly to secure a rate.

"Many of the lenders give very little notice that they are going to withdraw their mortgages. If you miss out on securing the rate you want, it could be 0.5% more expensive when you apply for it."

Some surprisingly cheap mortgages are still available 

Some of the lenders are offering surprisingly cheap mortgages often to their existing customers who are switching rates.

They are some decent five and seven-year fixes through lenders like Halifax and Barclays. Virgin Money is also offering existing customers a good 15-year fix.

Average mortgage rates on the rise

The latest figures from financial data provider Moneyfacts show the average two-year fixed residential mortgage rate has risen to 6.23%. The number of mortgage products on the markets has recently increased to 4,483.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage