Brits snap up lower mortgages as BOE cut boosts market [Video]

LONDON — Britain’s biggest high street lenders are continuing to slash borrowing costs after the Bank of England’s first interest rate cut in four years sparked a boom in homebuyer activity.

Barclays, Halifax, HSBC and NatWest are among the lenders now offering five-year fixed-rate mortgages of under 4%, below the BOE’s 5% key rate.

The best five-year fixed rate is currently 3.83% for buyers with a 40% deposit, according to a new report from property portal Rightmove. This marks the lowest level for such a product since before the U.K.’s disastrous mini-budget in September 2022.

It follows a prior easing of tracker rates, which fell in line with the bank’s 25 basis point rate reduction earlier this month.

The improving economic environment, as well as the political certainty gained from the U.K.’s July general election, has led to an “immediate upturn,” in buyer activity, Rightmove found.