As speculation grows that the Bank of England could opt to cut the interest rate for the first time in four years next week, lenders are continuing to drop the cost of their mortgages. After 14 hikes in the base rate over the last two years, this is welcome news for people who have struggled with mortgage re-payments.
Major lenders are trimming their rates
Nationwide this week reintroduced sub 4% fixed rate mortgages as it cut rates by up to 0.25% across its two, three and five year fixed rate products. HSBC also trimmed their rates on new deals.
With a summer price war appearing to intensify ahead of the Bank of England Interest rate drop, which could be expected as early as August 1st (although some experts believe it may not happen until September), Barclays and TSB have become the latest lenders to cut their fixed rates.
Barclays announced cuts of up to 0.1% to a wide range of its residential purchase and remortgage deals (effective from today 26th July). The lender is offering a 5 year deal for a fixed rate home purchase at 4.04%, with at least 40% cash deposit (60% loan to value) with an £899 fee for borrowers, while Barclays Premier Banking customers can get the same deal at 4.03%
TSB has lowered selected fixed rates from today for new and existing customers by up to 0.2%. with a £995 fee and a two-year fixed rate for home purchase from 4.54%, or at 4.14% over 5 years with a deal requiring at least 40% cash deposit.
A number of other lenders including Skipton, Mpowered and Atom Bank have also reduced their borrowing rates this week. https://www.bbc.co.uk/news/articles/c0470j9l8kno?at_medium=social&at_link_id=0E242C22-49B3-11EF-9D41-E29CB2943FD3&at_campaign=Social_Flow&at_ptr_name=facebook_page&at_format=link&at_campaign_type=owned&at_link_origin=BBC_Wales_News&at_bbc_team=editorial&at_link_type=web_link
UK finance forecast
In terms of the overall mortgage rate forecast, UK Finance said in its latest housing and mortgage market forecasts for 2024 and 2025 ‘while it will take some time for the pressure on household finances to recede, we expect things to look up in 2025’.
Growing confidence
David Phillip commented “there appears to be growing confidence that the Bank of England will cut interest rates next week, the latest reductions will provide significant savings for those looking to re-mortgage or secure a mortgage – this is an opportune time to consider locking in a fixed rate” .
Free market appraisal
When mortgage rates reduce it is a good time to consider a potential property move – if you are thinking of moving home, David Phillip Estate Agents are busy selling homes in North Leeds. If you would like a free market appraisal, call 0113 4676400 https://davidphillip.co.uk/valuations/
David Phillip Estate Agents, 86, Leeds Road, Bramhope, Leeds w davidphillip.co.uk - Covering Leeds, North Leeds, Bramhope, Adel, Cookridge, Horsforth and Pool-in-Wharfedale
