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 isn’t alone — 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 is still well above that. Here’s what’s actually on offer.
Nationwide kicks off a fresh round of cuts
Nationwide reduced its mortgage rates by up to 0.28 percentage points from Tuesday 16 June, across its two-, three-, five- and ten-year fixed deals. Its lowest rate is now 4.29% — a two-year fix at 60% loan-to-value for home movers, though that one carries a £1,499 fee and a minimum loan of £300,000.
First-time buyers see cuts of up to 0.20%, on deals running all the way up to 95% loan-to-value, with £500 cashback on completion and up to a further £500 through Nationwide’s Green Reward for energy-efficient homes. People remortgaging get the largest reductions, up to 0.28%, while home movers see up to 0.17% shaved off.
Lenders are competing harder for borrowers again — and that competition is pulling fixed rates down.
It isn’t just Nationwide
Nationwide’s move is part of a wider trend. Halifax, Santander, HSBC, Barclays and TSB have all trimmed rates through June as competition picks up. The result is a clutch of cheaper headline deals: the lowest two-year fix on the market is now 4.35% and the lowest five-year fix 4.40%, both from HSBC.
There is a sub-4% rate out there — Halifax has a tracker at 3.96% — but it’s a variable deal that moves with the base rate, not a fixed one. For the certainty of a fixed monthly payment, 4.35% is currently as low as it goes.
The lowest rates right now
HSBC
HSBC
Halifax — variable, not fixed
Cheaper — but not a price war
It’s worth keeping the cuts in perspective. The average two-year fix is still 5.64% and the average five-year 5.60% — both lower than a month ago, but well above the best-buy deals. The gap between the headline 4.35% and the 5.64% average is wide, and it’s exactly where shopping around earns its keep.
Despite some older headlines about sub-4% deals, there is no fixed-rate price war below 4% right now — the cheapest fixed deals sit comfortably above that, and lenders have cautioned that the cuts could slow or even reverse if the outlook shifts. The Bank of England has held its base rate at 3.75% since December, with its next decision due on 18 June; a hold is widely expected.
What it means for your mortgage
If your current deal is ending in the next six months, you can usually lock in a new rate now and still switch if something cheaper appears before it starts — so falling rates are worth acting on rather than waiting out.
Whether a two-year fix, a five-year fix, a tracker or staying put makes sense depends on your numbers. You can model repayments with the repayment calculator, and 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.