NatWest, Barclays and Santander Cut Mortgage Rates in June 2026

Three of the UK's biggest lenders have moved on mortgage pricing in the space of a week. NatWest, Barclays and Santander have all reduced selected fixed rates, and they are not alone. The reductions are welcome for anyone buying or remortgaging, but they arrive in a market where the Bank of England has warned that inflation could climb again later in the year. For borrowers, the question is less whether rates are falling and more whether to act on the current window or wait to see how far it runs.

For a free initial consultation about locking in a rate while lenders are cutting, call 01202 155992 or contact Mortgage One.

Which lenders have cut mortgage rates in June 2026?

Several major UK lenders have reduced selected fixed mortgage rates in the opening weeks of June 2026. NatWest, Barclays, Santander, Halifax, Coventry Building Society, Gen H and TSB have all trimmed pricing on parts of their ranges, with NatWest reducing rates for a third time in a fortnight from 8 June.

NatWest is the clearest mover. From 8 June the lender is reducing rates across its new business, existing customer and additional borrowing ranges, the third time it has cut in a fortnight. Brokers were given until 11:59pm on Sunday 7 June to submit applications on existing deals before the new, lower pricing took over, a deadline that shows how quickly ranges are turning over.

Barclays moved in the prior wave, cutting selected fixed rates by up to 0.43%, taking a three-year fixed purchase deal at 95% loan-to-value down to 5.42% with an £899 fee. NatWest had already reduced rates by up to 0.54% in late May, including a two-year tracker remortgage at 80% loan-to-value priced at 4.42% with a £995 fee, before the 8 June round.

Santander followed on 4 June with sweeping cuts of up to 0.17% across its new business and product transfer ranges, covering residential and buy-to-let lending. Its lowest two-year fixed rate for home movers at 60% loan-to-value came down to 4.43%, close to the sharpest pricing in the market, with standard product transfer rates trimmed by up to 0.10%.

They were not the only lenders repricing. On 1 June Halifax, Coventry Building Society and Gen H all reduced selected products, with Halifax trimming remortgage rates by up to 14 basis points and Gen H cutting by up to 0.3%. The cumulative effect has been to widen the choice of sub-4.5% deals after months of higher pricing.

TSB is also among the lenders trimming fixed deals through June, continuing the selective repricing that began with the earlier wave of cuts after the April hold. The pattern is targeted rather than wholesale, with lenders adjusting individual loan-to-value tiers and fees as competition sharpens ahead of a heavy second-half remortgage season.

Are mortgage rates going down, or just being trimmed?

Fixed mortgage rates have eased gradually over recent weeks rather than falling sharply. If your deal is ending, our guide on whether to fix your mortgage now or wait for rate cuts weighs locking in current pricing against holding out. The Bank of England base rate has held steady all year, so the reductions reflect lenders trimming margins as funding costs soften, not a base-rate-driven move. Whether this becomes a sustained downtrend depends on the inflation outlook.

The starting point is that the Bank of England has not cut. The base rate has held at 3.75% all year, including at the 30 April meeting, where the Monetary Policy Committee voted 8 to 1 to hold and the single dissenter argued for a rise to 4%. So the recent reductions are not the base rate feeding through. They are lenders responding to funding costs and competition, which is why borrowers can compare current fixed and tracker rates that still sit well above the headline base rate.

That gap matters. Two-year and five-year fixed averages have stayed close to two percentage points above the base rate through the spring, so a run of small cuts trims that premium without removing it. Whether the trend continues or stalls depends less on the next base-rate move and more on what markets expect to happen to inflation over the next few years.

Why lenders are cutting now: swap rates and easing inflation

Lenders set fixed pricing from swap rates, which track where markets expect the base rate to go. Swap rates have eased over the past month as inflation softened and energy-market tensions calmed, letting lenders cut without squeezing margins. The same mechanism can push pricing back up if the outlook deteriorates.

Fixed-rate mortgages are funded and hedged in wholesale markets, and the cost of that funding is tracked through swap rates. When markets grow more confident that the base rate will fall, swap rates ease and lenders can lower fixed pricing while protecting margins. Over the past month swap rates have drifted lower as inflation data softened and energy-market tensions calmed, which is what has given lenders room to cut.

The inflation picture has helped. Consumer Prices Index inflation fell to 2.8% in the year to April 2026, down from 3.3% in March, easing some of the pressure that had pushed pricing up earlier in the year.

The caution is that the Bank of England expects this to be temporary. Its late-April projections had inflation rising again through the second half of 2026 on higher energy and food costs, and one rate-setter voted to raise the base rate rather than hold. That is why the current cuts look fragile, and why our interest rate forecast sets out the scenarios that could push fixed pricing either way.

What the cuts mean if your fixed deal ends in 2026

Borrowers whose fixed deals end in 2026 will mostly move onto higher rates than they are leaving, even after recent cuts. The practical question is timing, not whether the new rate is higher. Reserving a deal early, with the option to switch lower before completion, gives some protection in an uncertain market.

A large number of borrowers will reach the end of a fixed deal during 2026, and most will move onto something more expensive than they are leaving, even after the recent cuts. Moneyfacts analysis cited by the HomeOwners Alliance puts the increase for a typical £250,000 mortgage over 25 years at close to £300 a month compared with pricing before the early-2026 shock, an annual difference of around £3,380.

The decision for most people is therefore about timing rather than whether the new rate is higher. Most lenders let a new deal be reserved up to six months before the current fix ends, and many allow a switch to a lower rate if pricing improves before completion. Letting a deal lapse onto a standard variable rate is almost always the most expensive outcome, which is why a structured remortgaging guide and an early review tend to pay off.

To weigh the timing of your remortgage against the deals actually available now, call 01202 155992 or contact Mortgage One.

Should you fix now or wait for further cuts?

There is no risk-free answer to fixing now versus waiting. Locking in pre-empts any further rise in swap rates, while waiting could capture more cuts if inflation data stays soft. The right call depends on your loan-to-value, completion deadlines and how long your current deal has left to run.

The near-term signal is the Bank of England's 18 June decision. A further hold looks likely on current expectations, but the Bank's own language in April left the door open to rates moving in either direction, and the lenders pricing fixed deals are reading exactly the same scenarios. A hold does not, on its own, mean cheaper mortgages are coming.

What changes the answer is the borrower's own position. A higher loan-to-value applicant, more exposed to products being withdrawn, faces a different risk from a low loan-to-value remortgager with substantial equity and time to wait. Generic lock-in-now or wait-and-see advice does not account for that, which is the value of a review against the deals actually available from the whole of market.

For a confidential review of whether to secure a rate now or hold your nerve, call 01202 155992 or contact Mortgage One.

Figures correct as of 5 June 2026.

Back to Lender Behaviour and Deals

The information provided in this article is for general guidance only and does not constitute personal or regulated financial advice. If you would like to understand what these moves could mean for you, speak to Mortgage One. We can explain your options and timings based on your specific circumstances.

FAQs

Which lenders have cut mortgage rates in June 2026?

NatWest, Barclays, Santander, Halifax, Coventry Building Society, Gen H and TSB have all reduced selected fixed rates in the opening weeks of June 2026. NatWest is reducing rates across its new business, existing customer and additional borrowing ranges from 8 June, its third reduction in a fortnight.

Are mortgage rates going down in 2026?

Fixed mortgage rates have edged down for several weeks as swap rates eased, but they remain well above where they sat before the early-2026 energy shock. The Bank of England base rate has held at 3.75% all year, so the recent moves are lenders trimming margins rather than a base-rate-driven fall.

Why is NatWest cutting mortgage rates again?

NatWest has reduced rates three times in a fortnight because funding costs, tracked through swap rates, have eased and competition for borrowers has intensified ahead of a heavy remortgage season. Its 8 June change covers new business, existing customer and additional borrowing products.

Will mortgage rates keep falling for the rest of 2026?

There is no guarantee. The Bank of England has signalled that inflation is likely to rise again later in 2026 on higher energy and food costs, and one rate-setter voted to raise the base rate in April. If swap rates drift back up, the current cuts could slow or reverse.

Should I fix my mortgage rate now or wait for further cuts?

That depends on your circumstances, not on the headlines. A purchase with a fixed completion date carries different timing risk from a remortgage six months out. Most lenders let you reserve a rate now and switch to a lower one if pricing improves before completion, which can hedge the decision.

How quickly do mortgage rate cuts disappear?

Lender rate changes can be withdrawn at short notice, often within days, once a tranche of funding is used up or swap rates move. NatWest gave brokers until 11:59pm on 7 June to submit existing-rate applications before its 8 June reductions took effect, which is typical of how fast ranges change.

Does a Bank of England rate hold mean cheaper mortgages?

Not necessarily. Fixed-rate pricing follows swap rates, which reflect where markets expect the base rate to go, not just where it sits today. The base rate held at 3.75% in April, yet fixed pricing has moved in both directions since, driven by the inflation and energy outlook.