Mortgage rates still starting from 3.75% despite NatWest and Santander price hikes

by Aaron Strutt

Oct 15 2024

Santander and NatWest are the biggest banks to increase their lowest mortgage rates following a surprise rise in the cost of funding.

Even though Barclays, Halifax, and Skipton have also raised rates, two-year fixed mortgages are still available from around 3.85% and five-year fixes from around 3.80%. More lenders will probably raise their rates in the coming days, although they are likely to come back down again over the near term.

Halifax for Intermediaries has launched a range of Bank of England tracker rates without early repayment charges to provide borrowers with more flexible deals. Halifax's most competitively priced variable mortgage tracks the base rate with a margin of 0.08%, giving a pay rate of 5.08%.

Tracker rates have increased in popularity, and if HSBC's predictions are correct, more borrowers may take them. HSBC expects the Bank of England base rate to reduce significantly, reaching 3.25% by September 2025 and 2.75% by December 2025. However, this may change depending on the US election results, particularly if Donald Trump is elected and there are significant tax changes.

Aaron Strutt, product director at Trinity Financial, says: "A range of banks and building societies still offer sub-4% fixed rates for property purchases and remortgages. The lenders are doing more to tempt borrowers to switch lenders rather than stick with their existing mortgage providers.

"We are helping lots of first-time buyers secure mortgages, and many want to complete their purchase well before the stamp duty increase."

Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

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