Duo of Big Six lenders launch sub-4% two and five-year fixes

Santander and Barclays have become the first lenders to launch residential mortgage rates below 4% in 2025.

Available from tomorrow, Santander UK has launched a range of 3.99% two and five-year fixed rate residential purchase and remortgage products at 60% LTV.

Residential purchase products come with a £1,999 fee and remortgage products with a £1,749 fee.

The lender has also announced reductions of up to 0.40% on more than 80 other mortgage products, also live from Thursday. The raft of rate cuts impacts residential purchases, remortgages, new build purchases, as well as buy-to-let purchases and remortgages.

Barclays has also announced the reintroduction of sub-4% fixed rates from tomorrow, introducing two five-year fixed rate products.

A Premier five-year fixed rate product is available at 3.99% up to 60% LTV with an £899 product fee, while a Green Home five-year fix has also reduced to 3.99%.

The new products launch alongside widespread rate cuts across Barclays' residential and buy-to-let purchase and remortgage ranges.

The lowest two-year fixed rate purchase from Barclays is available 4.21% with an £899 product fee, while a two-year remortgage product at 60% LTV has reduced to 4.20%.

David Morris, Head of Homes at Santander UK, commented: “We’re delighted to launch a range of new products, along with rate cuts on our existing range, that will make a difference to customers across every stage of the home-buying journey. From prospective buyers looking to get on the ladder for the first time, to landlords in the buy-to-let market, we’re proud to offer competitive products that help our customers reduce the overall cost of their mortgage.”