Mortgage market switches from rate cutting to rate rising market - but sub-4% fixed rates still available

by Aaron Strutt

Jun 04 2025

Clydesdale Bank, The Co-operative, Halifax, Santander, and Accord have all recently increased their mortgage rates. This is due to an increase in swap rates, which are used to price fixed-rate deals.

The price rises came as Andrew Bailey, Governor of the Bank of England, warned that the pace of future Bank Rate cuts was “shrouded in uncertainty” due to the unknown impact of Trump’s tariffs on the economic outlook.

Sub-4% fixed-rate mortgages still available

Some borrowers still believe we are in a rate-cutting environment where mortgages are becoming cheaper, but this is generally not the case. For the moment, lenders such as Barclays, TSB, Santander, and Barclays for Intermediaries all offer sub-4% mortgages. 

Mortgage rates have been edging up recently, and many major banks and building societies have increased their rates. There are fewer sub-4% fixed-rate options available. 

Aaron Strutt, product director at Trinity Financial, says: "The mortgage market can change quickly. When funding costs increase, fixed rates can be withdrawn and become more expensive within a few days, which is why it is crucial to act if you spot a rate that appears to offer good value for money.

"Even with the recent price increases, mortgages should remain fairly priced over the near term. There are still some decent options available now, but there are certainly fewer three and five-year fixes priced around 3.99%. While the cost of funding does seem to have stabilised, it would not be a surprise to see more lenders pushing up their prices over the coming days."

Nationwide has lowered its two-year fixed rates after increasing pricing a few weeks ago.

Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

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

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