After months of stubbornly high rates, the cuts will be welcome news for the 1.8 million people due to remortgage in the remainder of 2025.
Read on to find out how much rates have fallen by, and for advice on whether another base rate cut could be on the cards.
Fixed-rate mortgages are getting cheaper
Data from Moneyfacts shows average rates on two-year and five-year fixed-rate mortgages dropped by 0.13% and 0.1% respectively in February, as lenders relaunched sub-4% mortgages.
Some lenders have launched headline-grabbing deals of late, but borrowers will need to be vigilant in checking these deals really offer the best value for money. For example, Santander offered a two-year fix with a rate of 3.99% last month, but it came with a substantial upfront fee of £1,999.
Find out more:Deals are disappearing quickly
Moneyfacts says the average shelf life of a mortgage deal dropped from 36 days on 1 February to just 16 days on 1 March, as lenders chopped and changed their rates.
This decline has primarily been fueled by banks competing to offer the best deals, leading to more frequent adjustments. In addition, a limited number of market-leading deals were only available for a short period of time, further reducing the average shelf life.
Despite the faster turnover of mortgage products, the number of providers featuring in our top mortgage rate tables remained consistent in January and February, at 16.
undefinedWhen to think about remortgaging
If you've got more than six months left, it's best to sit tight for now. If you lock in a deal too early, you may need to pay early repayment charges to your current lender, which can run to thousands of pounds.
undefinedsource https://www.which.co.uk/news/article/mortgage-rates-fall-by-biggest-margin-in-six-months-aXMDW7u3Tq1T