A Promising Outlook: Mortgage Rates Drop Below 4% as Market Confidence Grows
UK mortgage rates are now starting to fall below 4%, offering fresh opportunities for buyers and homeowners. Find out what this means for you and how Prospect Tree Mortgages can help.
After a challenging couple of years in the mortgage market, there’s finally a real reason to be optimistic — rates are falling, lenders are keen to compete, and borrowers are starting to benefit.
In recent weeks, several big-name lenders have reduced their mortgage rates across the board. We’re now seeing more and more deals dipping below 4%, particularly for borrowers with good loan-to-value ratios. This is the first time since late 2022 that sub-4% rates have been widely available — and it’s a clear sign that market confidence is on the rise.
What’s Behind the Shift?
There are a few key reasons mortgage rates are starting to fall:
- Lower swap rates (the cost banks pay to borrow money) are helping lenders reduce pricing
- Improved economic stability and a positive inflation outlook are calming the markets
- Lenders are competing harder for business, especially as housing activity starts to pick up again
What does this mean in real terms? It means borrowers now have more choice, better rates, and a real chance to save — whether you’re remortgaging, buying your first home, or moving house.
The Return of Sub-4% Mortgage Rates
Deals under 4% are available across a range of product types, including:
- Two- and five-year fixed rate mortgages
- Remortgages for existing homeowners
- Buy-to-let mortgages
- And in some cases, even products for international or complex income clients
While your eligibility will still depend on things like credit history, income, and property type, the increased availability of competitive rates is great news for anyone thinking about their next move.
Why Now Is a Good Time to Review Your Mortgage
Whether your current deal is ending soon or you’re just curious about your options, this is a smart time to act. Here’s why:
- Save money: Even a small drop in your interest rate can significantly reduce your monthly payments
- Plan ahead: You can secure a new mortgage deal up to 6 months in advance — giving you time to shop around
- Avoid the standard variable rate (SVR): Don’t get caught out by letting your deal expire without a plan
- Capital raise with better terms: If you’re funding a renovation, extension, or investment, better rates can make your plans more affordable
Many borrowers wait until their lender sends a reminder — but by then, you’ve already lost valuable time. A proactive approach can lead to better outcomes and fewer last-minute decisions.
How Prospect Tree Mortgages Can Help
At Prospect Tree Mortgages, we offer a mortgage health check. We’ll review your current mortgage, explore whether a better deal is available, and even track the market for you so you’re ready to move when the time is right.
We work from a comprehensive panel which is representative of the whole of the market, not just one bank. And because we understand that no two clients are the same, we take the time to tailor our advice around your goals, whether you’re:
- A first-time buyer
- Looking to remortgage
- Moving house
- Self-employed or have complex income
- Planning to capital raise for home improvements
Take Advantage of the Positive Momentum
Mortgage rates dropping below 4% isn’t just a headline — it’s a real opportunity for homeowners and buyers to improve their financial position and plan with confidence.
If you’re unsure what this means for your situation or want expert guidance on your options, we’re here to help.
Your home may be repossessed if you do not keep up repayments on your mortgage. the information contained within was correct at the time of publication but is subject to change, 07.05.2025.
What’s Next?
If you’re thinking about moving home, remortgaging, or buying your first property, now is a great time to review your mortgage options. At Prospect Tree Mortgages, we’re here to help you understand your choices and find the best mortgage for your situation.
Get in touch with our expert advisors today to discuss how this base rate cut could benefit you. We aim to ensure you make the most of the opportunities available.
Call us at 0800 8620 840 or visit our website at www.ptmortgagesltd.co.uk to learn more.
If you’d like to learn more about mortgage products and how we can help you, please don’t hesitate to get in touch with our team. We’re here to help you navigate the ever-evolving world of mortgages and guide you toward a brighter, greener home.