The availability of sub-4% mortgage deals has sharply declined, with only two remaining on the market. This marks a significant change from 1 January 2026, when 746 such deals were available, including a variety of fixed-rate and tracker options.
The two remaining sub-4% mortgages are largely inaccessible to most borrowers. One is exclusively for existing Nationwide mortgage customers, while the other is restricted to Barclays Premier customers, who must have at least £100,000 in savings or investments with Barclays, or an annual income of at least £75,000.
For those without existing customer status or income requirements, the lowest available rate is 4.05%. This is a HSBC tracker mortgage, open to first-time buyers and home movers with a minimum 40% deposit. First-time buyers with a 10% deposit face a lowest rate of 4.54%.
Mortgage rates have been pushed higher by global instability and fluctuating energy prices, particularly due to conflict in the Middle East. This volatility impacts swap rates, which lenders use to price fixed-rate mortgages.
While some lenders, like Nationwide and Virgin Money, have recently cut rates on selected deals, these reductions do not affect the cheapest tracker mortgages currently available. Other major lenders, including West Brom Building Society, Halifax, and Lloyds, have increased rates on some fixed-rate deals.