Mortgage rates slashed

Brits could be in for a windfall on their home loans as major mortgage lenders slash rates in a renewed high-stakes battle for borrowers.

Nationwide cut selected two-year fixes by up to 0.16%, taking its cheapest deal down to 3.54% – one of the lowest rates on the high street.

Santander went further, chopping up to 0.32% off two, three, and five-year deals for first-time buyers, giving those with smaller deposits a serious helping hand.

“There’s real demand for creative support from lenders,” said David Morris, director of homes at Santander UK.

Mortgage expert Craig Leigh warned, “If you’re a first-time buyer with a small deposit, these cuts could make a huge difference – but think long term, not just the headline rate.”

Advisers say now is the time to shop around, as competition between lenders could push rates even lower. But they caution: check affordability over the full term, not just the initial fixed period.

With millions of Britons eyeing their next move in the housing market, this race to the bottom on mortgage rates could save buyers thousands – but timing could be everything.