Major UK Lenders Cut Mortgage Rates Amidst Competitive Market

Mortgage lenders in the UK are engaging in a competitive price war, with rates dipping below 3.8%, although the best deals come with strict conditions. Lloyds Bank currently offers the lowest two-year fixed mortgage rate at 3.69%, but this deal is exclusive to Club Lloyds account holders and requires a 40% deposit along with a £999 fee. Barclays has introduced a 3.75% two-year fix for Premier customers, while Santander and Halifax offer 3.79% two-year fixes for borrowers with at least a 40% deposit. Building societies like Coventry have reduced selected residential mortgage rates by up to 16 basis points and eased affordability stress tests, allowing some borrowers to access more funds. Market experts note the gradual decline in rates and anticipate further decreases, although the conditions tied to these low rates limit accessibility. Government-backed reforms, such as allowing renters to use their rental history to prove affordability, aim to make mortgages more accessible in the near future.