Sub-4% fixed-rate mortgages have largely disappeared from the market following a wave of repricing by lenders, according to analysis from Moneyfactscompare.co.uk.
All of the major banks, including Barclays, HSBC, Lloyds Bank, NatWest and Santander, have increased mortgage rates since the start of March, removing sub-4% deals that were still available just a week earlier. Lenders such as Nationwide have also withdrawn similar products.
The shift follows a period of market volatility, with lenders adjusting pricing and, in some cases, pulling products altogether. The last time two- and five-year fixed rates were consistently above 4% was in February 2025.
Although average mortgage rates across two-, five- and 10-year fixes remain lower than a year ago, recent increases have pushed typical two- and five-year deals back above 5%.
Despite a reduction in the Bank of England base rate to 3.75% in December 2025, changes have not fully fed through to borrowers. Average standard variable rates have fallen only slightly, and the overall average mortgage rate, which had dropped below 5% last month, has now moved back above that level.
Rachel Springall, finance commentator at Moneyfactscompare.co.uk, said: “Borrowers looking for the lowest fixed rates will be disappointed to see the demise of sub-4% mortgages, but they are not sustainable with swap rates increasing. Lenders look at margins very carefully, so it would be unwise to price their deals too low, if the expectations are for interest rates to rise, even if over the short-term. The mortgage market needs stability, and really, borrowing costs are lower than in recent years, and we have had sub-4% deals on the shelves for over a year (since February 2025). While many of the biggest lenders no longer offer a sub-4% fixed deal, it is a cautious decision. Mortgage rates are rising due to global pressures, not UK fiscal policy, so while not ideal, rate increases are not mirroring the ‘mini-Budget’ fiasco in 2022.
“In an unprecedented turn of events, the unrest in the Middle East has led to rising swap rates, which has inflated mortgage rates and caused deals to be pulled from sale, some temporarily. These developments have scuppered expectations for the Monetary Policy Committee to vote for a cut to the Bank of England Base Rate, now much more likely for a hold this week. If such uncertainty is prolonged, and indeed if inflation spikes, we could even see an increase to BBR before the year is over. It really is too early to tell what might happen, but borrowers searching for a new deal should seek advice if they are concerned about rising costs. It is still important to secure a fixed deal compared to a high revert rate, as almost £300 could be saved each month in repayments*, and existing borrowers could lock into a new deal six months in advance.”
| Mortgage market analysis | ||||||
| Average mortgage rates | Mar-21 | Mar -24 | Mar-25 | Feb-26 | Mar-26 | 17-Mar-26 |
| Standard variable rate (SVR) | 4.41% | 8.18% | 7.68% | 7.15% | 7.13% | 7.13% |
| Two-year fixed mortgage | 2.57% | 5.76% | 5.39% | 4.85% | 4.84% | 5.28% |
| Five-year fixed mortgage | 2.75% | 5.34% | 5.22% | 4.94% | 4.96% | 5.32% |
| 10-year fixed mortgage | 2.38% | 5.56% | 5.61% | 5.60% | 5.61% | 5.76% |
| Average rates shown are as at the first available day of the month, unless stated otherwise. Source: Moneyfactscompare.co.uk | ||||||
| Moneyfacts Average Mortgage Rate | ||||||
| Mar-21 | Mar-24 | Mar-25 | Feb-26 | Mar-26 | 17-Mar-26 | |
| Moneyfacts Average Mortgage Rate | 2.66% | 5.62% | 5.33% | 4.90% | 4.90% | 5.27% |
| Calculated from the total of all on-sale, core market, fixed and variable tracker mortgages. Standard exclusions apply: Self-build only, shared ownership only, new build only, shared equity only, standard variable rates and adverse credit. | ||||||
| Source: Moneyfacts Average Mortgage Rate. | ||||||
Read the orginal article: https://propertyindustryeye.com/sub-4-fixed-rate-mortgages-disappear-from-the-market/?utm_source=rss&utm_medium=rss&utm_campaign=sub-4-fixed-rate-mortgages-disappear-from-the-market
