Santander and TSB lead UK mortgage rate reductions after a month of volatility driven by Middle East conflict. Santander cut fixed-rate deals by up to 0.28 percentage points, while TSB reduced two-year fixed rates by 0.45 percentage points. Brokers note Coventry and Skipton building societies also adjusted pricing, though new rates remain higher than pre-war levels. The decline follows a sharp rise in swap rates to 4.45% in March, which have since eased to 4.06%.

Analysts suggest lenders initially raised rates to curb demand surges, not due to funding costs. Hina Bhudia of Knight Frank Finance calls the cuts a “first meaningful relief” for borrowers. However, Aaron Strutt of Trinity Financial warns volatility persists, with Nationwide offering the lowest current rates at 4.66%.