Major bank launches first mortgage under 4% in 2025 as lenders ignite new rate battle SUB-4% mortgages are making a comeback in the market, with one major lender igniting a fresh rate war as it prepares to launch new deals later this week.
Other new deals include a buy-to-let home purchase mortgage at 65% LTV with a two-year fixed rate at 4.35% with a £1,749 fee or 4.89% with no fee.
The move follows a cut in the Bank of England base rate last week, from 4.75% to 4.5%, fuelling hopes that competition between lenders to chop mortgage rates could heat up.
David Hollingworth, associate director at L&C Mortgages said: "These are the first standard rates from a high street lender to drop below 4% since last November and deals are available to both buyers and those remortgaging.
"That has been feeding through to mortgage rates in the last week, and underlines gradual improvement in the market, as fixed rates begin to ease back.".
