Rate note - 1 July 2026
Swap rates sat still this week, but lenders moved anyway.
Interest-rate swaps were broadly flat. The GBP SONIA swaps that underpin fixed-rate mortgage pricing were little changed: five-year swaps are still around the 4% mark and the two-year a shade below, both within a basis point or two of our last reading. So the funding backdrop for fixed mortgages hasn’t really shifted.
Buy-to-let fixed pricing eased, though. Across the limited-company buy-to-let market we follow, five-year fixed pricing at 75% loan-to-value came down this week in a broad, consistent move - a decent chunk of the shelf repriced lower rather than one or two odd products. With swaps flat, this looks like lenders trimming margins and competing on price rather than any change in the underlying cost of funding. Our own lender held its pricing unchanged.
Our take: this is the first genuine downward move we’ve noted in a while, and it’s coming from competition rather than the swap market. It doesn’t change our own fixed position, but it’s a reminder that the gap between the sharpest available five-year pricing and where we sit has widened a little. Worth keeping an eye on if the trend continues; nothing to act on today.