Homeowners hoping for relief from interest rate cuts may be disappointed.
New research from Finder reveals that, despite two Bank of England base rate reductions since October 2024, mortgage rates have edged up while savings rates have tumbled more sharply than expected.
Between October and March, the base rate fell by 0.5 percentage points to 4.5%.
Yet average two-year fixed mortgage rates with a 25% deposit rose from 4.41% to 4.54%, peaking at 4.66% in February. Five-year deals followed suit, climbing from 4.06% to 4.32%.
Meanwhile, savers have taken a bigger hit. The average variable cash ISA rate has dropped nearly 25% over the same period, from 2.58% to just 1.96%.
However, Nationwide Building Society said today that it is cutting some mortgage rates to below 3.9%.
Britain’s biggest building society said it will cut rates by up to 0.25 percentage points on selected two-year, three-year and five-year fixed rate products across its first-time buyer and home mover ranges.