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"We’re getting closer to seeing 2- and 3-year fixed rates starting with a 3"

Journalist: Riz Malik

ended 07. April 2025

With SONIA swaps continuing to slide on Monday, brokers believe “we could see some really big cuts in fixed rate mortgage pricing this week”, with one suggesting "we’re getting closer to seeing 2- and 3-year fixed rates starting with a 3". Newspage asked brokers how long they believe it will be before the first lender passes on the reductions in pricing on the markets and how low they could go. Views below.

Source: Chatham Financial

7 responses from the Newspage community

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Stephen Perkins
Managing Director at Yellow Brick Mortgages
SONIA swap rates are continuing to fall, which will give encouragement that lender fixed rate mortgages will shortly come down too. At the moment lenders are keeping their powder dry waiting to see if there will be a bounce-back, but if none are forthcoming lending rates will surely be reduced. This could be good news for borrowers in isolation of the economic turmoil that comes with the tariffs. We may well see sub-4% fixed rates in the near future if swap rates continue to fall at this rate.
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Riz Malik
Independent Financial Adviser at R3 Wealth
We could see some really big cuts in fixed rate mortgage pricing this week. With house prices dipping according to Halifax and millions set to remortgage, a rate cut could spark much needed momentum in a hesitant market. It will take a brave lender to make the first big move on rates, but once one does, others may quickly follow.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
With SONIA swaps continuing to slide, we’re getting closer to seeing 2- and 3-year fixed rates starting with a 3. If the current trends hold, it wouldn’t be surprising to see lenders break that barrier in the coming weeks. However, many are holding back, likely waiting for sustained swap rate stability before repricing aggressively. Lenders are cautious not to move too early and risk margin pressure if markets swing back. Once one makes the move, others will likely follow quickly, so borrowers should be ready to act fast when the tipping point arrives. We’re definitely edging into more exciting territory.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
Swaps are on the slide and then some. Given that fixed rate mortgages are priced off swaps, it's surely only a matter of time before the cuts from lenders start coming. Any ideas that the current uncertainty might be a flash in the pan are quickly subsiding and markets are betting on a rate cut at next month's meeting of the Monetary Policy Committee. Trump has unleashed chaos but borrowers look set to benefit.
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Daniel Hobbs
CEO at New Leaf Distribution
Since Trump's Liberation Day speech, swap rates have gone south and pretty sharply. Cuts from major lenders may be on the cards if this continues, which will be at least some good news amid the current economic uncertainty.
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Jack Tutton
Director at SJ Mortgages
Mortgage rates need to start being cut after the drop in the cost of borrowing since Trump annonued his tariffs. Lenders are very quick to increase interest rates when the market turns but are a lot slower when it comes to reducing them, they will we waiting to see if the current level of reductions continue before making any changes to their products. However, mortgage holders will want these reductions passed on especially given the amount of low rate mortgages that are coming to an end this year.
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Elliott Culley
Director at Switch Mortgage Finance
With SWAP rates continuing to fall, it's likely some lenders will release the handbrake and release the lowest rates seen so far in 2025. There will still be caution from lenders as this is a real-time event that is changing every day. At the moment Trump is holding firm on his decisions, which makes the reductions in rates more likely to be maintained as pressure grows, but if Trump does make some concessions this could lead to a change in interest rate forecasts.