Mortgage lenders have entered a pre-Christmas “rate war” as expectations grow that the Bank of England will cut the Bank Rate next week. NatWest, Barclays, Santander and Nationwide are among more than 20 lenders to reduce rates, with new two-year fixes now as low as 3.51–3.70%. Analysts say lender re-pricing has pushed average fixed rates to their lowest since before the 2022 mini-Budget. Brokers report rising activity and pent-up demand ahead of further expected cuts in 2026. Average two-year and five-year fixes now stand at 4.85% and 4.91%, with the Bank Rate forecast to fall from 4% to 3.75%.
