Mortgage rates are falling in the UK, even as the Bank of England holds its interest rate at 5%. Lenders like Virgin Money, Halifax, and Principality Building Society have cut mortgage rates by up to 0.25 percentage points, with some two-year fixed deals dropping below 4%. These reductions follow recent cuts by the US Federal Reserve, boosting optimism in global markets. The Bank of England is expected to maintain its rate until at least November, with mortgage rates continuing to dip as lenders pass on savings to borrowers.