[Trending News] Major boost for thousands who have Nationwide, Santander, Barclays, HSBC mortgage

Five lenders are now offering mortgage rates under 4 per cent. Nationwide, the largest building society in the world, is the latest to reduce rates, following Santander, Barclays and First Direct which are offering rates of 3.99%.

HSBC has a five-year fix at 3.98%. Nicholas Mendes, Mortgage Technical Manager at John Charcol, said: “This week has seen further downward movement in fixed mortgage rates, with HSBC launching a standout 3.98% deal.

“While reductions remain modest, they reflect a broader trend of lenders adjusting pricing in response to falling swap rates and shifting market expectations.” He said: “Another notable development is HSBC’s shift in strategy, with its most competitive rates now restricted to Premier customers.

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“Previously, the lender’s best buy deals were available to all borrowers, but eligibility now requires either an annual income of at least £100,000 paid into an HSBC Premier Bank Account or £100,00 plus in savings or investments with HSBC in the UK.

“This move helps HSBC manage service levels while maintaining competitive pricing for select customers. A similar approach has been seen from Barclays, meaning that for borrowers who do not meet the Premier criteria, alternative lenders may now offer more accessible rates.”

He added: “Currently, swap rates have fallen below 4%, marking a significant drop compared to last month. However, the narrow gap between two-year and five-year swap rates means lenders still face constraints in comfortably introducing sub-4% deals, particularly on shorter fixes.

“The decision to fix remains highly individual, but recent lender policy adjustments introduce an additional layer of consideration. HSBC has now shortened its product transfer window to three months, leaving Virgin Money as the only major lender still offering a six-month roll-off period.

“This change limits how far in advance borrowers can secure a rate, meaning those looking to remortgage may need to act more quickly. For those approaching the end of their current deal, locking in a rate sooner rather than later can provide certainty. While some borrowers may prefer to wait for further reductions, there’s always the risk that market conditions shift unexpectedly, potentially reversing the recent trend of falling rates.

“Those seeking more flexibility may still find value in tracker products, particularly where early repayment charges are minimal, but fixed rates remain a strong option for those prioritising stability.”