The short version
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A move from just over 5% to just under 5% won’t slash your payment overnight—but it does trim costs and often brings more product choice.
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Small changes add up over a fixed term, especially on bigger loans.
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You can usually lock a rate now and switch to a better one if pricing improves before completion.
How much could you actually save?
Examples below assume a repayment mortgage over 25 years.
Loan £200,000
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At 5.00%: ~£1,169/month
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At 4.95%: ~£1,163/month (save ~£6/month)
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At 4.89%: ~£1,156/month (save ~£13/month)
Not life-changing in one month, but across 24–60 months of a fix, the total saving matters—especially if you also bag a lower fee or a cashback incentive.
Why rates dipped?
Fixed mortgage prices are mostly driven by what it costs banks to borrow money in the markets (think “swap rates”):
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When those costs fall, lenders can price fixed deals lower.
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Competition matters too: if one big lender trims, others often follow.
Under 5% is a nudge in the right direction. It won’t transform your monthly payment by itself, but it widens choice and chips away at costs—and you can structure things to capture further improvements. If you share your balance, property value (for LTV), months left on your current deal, and ideal fix length, I’ll calculate a short-list with exact monthly payments and true-cost comparisons for you.
Frequently Asked Questions
Not automatically. Your LTV, term, credit profile, and product type (purchase vs remortgage) steer the exact rate you’re offered.