Mortgage rates are falling again as lenders cut
Nationwide has cut its fixed rates by up to 0.28 percentage points from today, and it is not the only one. Halifax, Santander, HSBC, Barclays and TSB are all trimming deals this month. The best two-year fix now sits at 4.35% and the best five-year at 4.40%, though the market average stays well above both. Here is what is actually on offer.
Nationwide kicks off a fresh round of cuts
From Tuesday 16 June, Nationwide trimmed its mortgage rates by up to 0.28 percentage points, and the cuts run right across its two-, three-, five- and ten-year fixed deals. The lowest it now offers is 4.29%. That is a two-year fix for home movers at 60% loan-to-value (the size of your mortgage set against the property’s value), and it comes with a £1,499 fee and a minimum loan of £300,000.
If you are buying your first home, the cuts reach up to 0.20% on deals that go all the way up to 95% loan-to-value. Nationwide is also adding £500 cashback on completion, plus up to another £500 through its Green Reward for energy-efficient homes. People remortgaging get the deepest cut of all, up to 0.28%, while home movers see up to 0.17% taken off.
Lenders are competing harder for borrowers again, and that competition is pulling fixed rates down.
Other lenders are cutting too
Nationwide is not acting alone. Through June, Halifax, Santander, HSBC, Barclays and TSB have all trimmed their rates as competition for borrowers heats up. That has left a run of cheaper headline deals on the table: the lowest two-year fix on the market now sits at 4.35% and the lowest five-year fix at 4.40%, both from HSBC.
There is one deal below 4%. Halifax has a tracker at 3.96%, though that is a variable product: its rate rises and falls with the Bank of England base rate instead of staying put. If you want the certainty of a fixed monthly payment, 4.35% is as low as it currently goes.
The lowest rates right now
HSBC
HSBC
Halifax (variable, not fixed)
Cheaper, but not a price war
It is worth keeping these cuts in perspective. The average two-year fix is still 5.64%, and the average five-year 5.60%. Both have come down over the past month, but they remain well above the best-buy deals. The distance between the headline 4.35% and that 5.64% average is large, and it is precisely where shopping around pays off.
You may have seen older headlines about a sub-4% price war. There is no such fight among fixed rates at the moment. The cheapest fixes sit comfortably above 4%, and lenders have warned that the cuts could slow or even turn around if the outlook changes. The Bank of England has held its base rate at 3.75% since December, and its next decision is due on 18 June. A hold is widely expected.
What it means for your mortgage
If your current deal ends within the next six months, you can usually secure a new rate now and still move to something cheaper if it appears before the new deal starts. That works whether you remortgage to a different lender or take a product transfer, which is a fresh deal with the lender you are already with. When rates are falling, it pays to act rather than sit and wait.
Whether a two-year fix, a five-year fix, a tracker or simply staying put is right for you comes down to your own numbers. You can model the monthly cost with the repayment calculator, and if you are weighing up a switch, our guide to remortgaging runs through the timing. A Clearview adviser can compare deals across lenders, including the ones cutting this week, and line one up for you.
Where rates stand
- Best two-year fix
- 4.35%
- Best five-year fix
- 4.40%
- Lowest tracker
- 3.96%
- Avg two-year fix
- 5.64%
- Avg five-year fix
- 5.60%
- BoE base rate
- 3.75% (held)
- Next MPC decision
- 18 June 2026
Sources: Nationwide, HomeOwners Alliance, Moneyfacts & Bank of England · verified 16 June 2026. Rates move weekly.
Sources & method
Figures verified against primary sources on 16 June 2026.
- Nationwide — mortgage rate cuts (June 2026)
- HomeOwners Alliance — best mortgage rates
- Moneyfacts — weekly mortgage rate roundup
- Bank of England — official Bank Rate
Best-buy and average rates read direct from HomeOwners Alliance and Moneyfacts on 16 June 2026; Nationwide’s cuts from its own news release. Rates move weekly and can be withdrawn at any time.
Your home may be repossessed if you do not keep up repayments on your mortgage. This article is general information, not personal advice, and rates can change at any time.