At least ten lenders offering sub-5% fixed rate mortgages

by Aaron Strutt

Oct 04 2023

Many mortgage products are now set below 5% as lenders cut prices following the Bank of England's decision to hold the base rate.

Trinity Financial looks at which lenders are offering the lowest rates. HSBC is the latest lender to announce it will lower rates again.

Where to find a sub-5% mortgage

Some banks and building societies offering sub-5% rates include Virgin Money for Intermediaries, Santander, Halifax, TSB, NatWest, Nationwide for Intermediaries, Bank of Ireland, HSBC and Skipton Building Society.

Most of these rates are five-year products, followed by 10-year fixes and one seven-year product. There are currently no two-year fixes below 5% - they are still quite a way from falling behind that threshold as the lowest rate is priced just over 5.2% from Barclays for Intermediaries.

A selection of lenders offering five-year and ten-year fixes under 5%

NatWest, TSB and HSBC for Intermediaries offer the most competitive five-year fixes. Nationwide is one of the biggest lenders currently offering 10-year fixes either 5%.

Will mortgage rates drop further?

For the moment, the lenders are still lowering their rates. More banks and building societies are offering sub-5% fixed rates as they try to provide more mortgages.

Many people are putting their plans on hold before getting on the property ladder or moving home; they are banking on the economy being better next year and having a more affordable range of mortgage rates.

The Times reports that government bond yields breached the 5 per cent level and hit their highest point since the Bank of England was forced to intervene in the debt market to stem the fallout of Liz Truss’s mini-budget and a fire sale in the pensions sector. This could mean higher mortgage rates.

However, many lenders are nowhere near hitting their lending targets, so they need to do more to tempt borrowers. They nearly always do this by offering better deals or easing their acceptance criteria.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation.

The information contained within was correct at the time of publication but is subject to change.

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