Mortgage rates are set to fall in the weeks ahead following the Bank of England’s decision to cut the base rate from four per cent to 3.75 per cent, but how far it will fall remains up for debate.
Analysts note the central bank’s move could result in a Christmas mortgage price war between lenders, which bring the cost of borrowing to buy a home down to as low as 3.5 per cent.
As it stands, the lowest interest rate on offer for a two-year fixed deal is 3.55 per cent from Santander, with NatWest having a five-year fixed deal with a 3.75 per cent rate attached.
Will mortgage rates drop below 3.5 per cent in 2026?
