Santander and Barclays have launched mortgage deals below 4%, the first since November, as competition between lenders increases.
The move comes as expectations grow for further Bank of England base rate cuts after the Monetary Policy Committee opted for a quarter point drop earlier this month to 4.5%.
However, these low rates are not available to all borrowers. A 40% deposit is typically required, making them out of reach for many first-time buyers.
Some deals also include high fees, meaning homeowners must check if switching is beneficial.
Currently, the average two-year fixed mortgage rate is 5.48%, while a five-year fix averages 5.29%.
Experts expect more lenders to follow. The Bank of England’s next rate decision is on 20 March, potentially bringing further relief for borrowers.