UK Lenders Cut Mortgage Rates as 2.8% Inflation Dims Bank of England Hike Bets
Updated
Updated · The Independent · Jun 17
UK Lenders Cut Mortgage Rates as 2.8% Inflation Dims Bank of England Hike Bets
2 articles · Updated · The Independent · Jun 17
Summary
Several UK lenders have already lowered mortgage rates this week, and Santander said further cuts will take effect from Thursday after May inflation held unexpectedly at 2.8%.
That reading eased expectations of further Bank of England tightening, pulling down swap-rate expectations that lenders use to price mortgages even though the base rate does not directly set mortgage deals.
Samuel Fuller said the shift could spark a lender "price war" as banks and building societies compete for borrowers, offering relief to 1.8 million homeowners due to remortgage over the next year.
T Rowe Price's Tomasz Wieladek said falling oil prices and softer inflation mean the BoE is now more likely to hold rates, with the next move potentially a cut rather than a hike.
Is the current mortgage rate relief just the calm before an inflationary storm this summer?
With regulators easing lending rules, will it become easier for buyers to get larger mortgages soon?
Will falling mortgage rates actually help homeowners if rising energy bills surge again this winter?
UK Five-Year Fixed Mortgage Rates Hit 5.24% in June 2026 Amid Economic Uncertainty
Overview
In June 2026, UK mortgage rates have fallen, making the market more competitive for borrowers. Attractive five-year fixed-rate deals at 5.24% are now available from Leeds Building Society and Skipton Building Society, with up to 95% Loan-to-Value, helping buyers with smaller deposits. Leeds Building Society’s offer stands out by including no product fees and a free valuation, and is recognized on the Moneyfacts Best Buy chart. These deals are accessible to a wide range of buyers, including first-time buyers across the UK, providing greater affordability and stability in a changing economic environment.