Sub 4% mortgage rates available - 28th February 2025

Several major UK lenders have recently introduced mortgage deals with interest rates below 4%, offering potential savings for borrowers.  

Nationwide Building Society: Reduced rates by up to 0.25 percentage points on selected two, three, and five-year fixed-rate mortgages. Notably, a five-year fixed-rate mortgage at 3.99% is available for existing customers with a 40% deposit and a £999 fee.  

Santander UK: Launched two and five-year fixed-rate deals at 3.99% for borrowers with a 40% deposit, applicable to both home purchases and re-mortgages. These deals come with fees of £1,999 for homebuyers and £1,749 for those re-mortgaging.  

Barclays: Introduced a five-year fixed-rate mortgage at 3.99% for homebuyers with a 40% deposit. This deal includes an £899 product fee and is available to existing or new Premier customers. Additionally, Barclays reduced the rate on its Green Home five-year fixed-rate mortgage to 3.99%, also requiring a 40% deposit and an £899 fee.  

While these sub-4% rates are attractive, they often come with substantial fees and are typically available to borrowers with significant deposits or equity. Additionally, rising inflation could impact the availability of these low-rate deals. Mortgage brokers warn that increasing inflation may lead lenders to withdraw their lowest cost mortgage offers, suggesting that borrowers may need to act promptly to secure favourable rates.