In a bid to generate new business amid what has been a bleak outlook for the property market, most of the largest lenders are expected to cut mortgage rates this week.
Major lenders including Barclays, Lloyds Banking Group, Nationwide and Santander are set to reduce borrowing rates to help stimulate buyer demand analysts expect.
NatWest and HSBC announced that they were cutting their mortgage rates on Monday in a bid to assist those seeking re-mortgage deals and also in a bid to ease some pressure on UK homebuyers – it I expected that more of the large lenders will follow suit.
HSBC said it was cutting rates across many of its new fixed products, including some for first-time buyers, home mover and re-mortgage deals.
Nat West announced reductions of up to 0.35 percentage points on selected fixed deals. A five-year fixed rate deal aimed at homebuyers with a 5% deposit that is currently priced at 6.39% will result in its rate being cut to 6.04% at the bank.
Accord Mortgages, part of Yorkshire Building society, also said that all of its fixed rates were being cut by 0.20 percentage points from Tuesday.
Whilst the Lloyd’s banking Group only repriced last week, it is only a matter of time before their sub-divisions such as Halifax do so again.
The UK’s top lenders have now been cutting mortgage rates for six weeks after they sky-rocketed to record highs in mid-July amid fears the bank of England would raise its own interest rates to levels not seen this century.
David Phillip commented “this is very positive news for the market, lenders are competing to win business and this is driving down rates which can only benefit home owners after months of uncertainty.”
If you are considering selling your home and would like advice on the current state of the property market and also a free market-appraisal call David Phillip on 01134 676 400.
W davidphillip.co.uk info@davidphillip.co.uk 86, Leeds Road Bramhope, Leeds, LS16 9AN e- info@davidphillip.co.uk
Covering Bramhope, Adel, Cookridge, Pool-in-Wharfedale and Otley.