Major lenders including NatWest and Nationwide have cut interest rates on fixed mortgage deals as they bet inflation will come down.
- The UK’s six biggest lenders have cut rates in the last week.
Major lenders including NatWest, Nationwide and Coventry Building Society have cut interest rates on fixed mortgage transactions as they bet on a drop in inflation.
The country’s six largest lenders, including Barclays and Lloyds Banking Group, cut rates last week, marking the fourth straight week that mortgage prices have fallen.
Lenders including Barclays and the Yorkshire Building Society yesterday cut their rates by as much as 0.61 percentage point on fixed-rate residential mortgages.
Official inflation figures released this morning are expected to raise hopes that households will feel some relief from the skyrocketing pace of prices.
Inflation fell to a 15-month low in June and is expected to have fallen further in July.
NatWest was one of the lenders that lowered interest rates on fixed mortgage deals
Lenders like Barclays cut rates by as much as 0.61 percentage point on fixed-rate residential mortgages as they bet inflation will come down.
But the Bank of England is expected to keep raising interest rates, after raising them to a 15-year high of 5.25% earlier this month. This means that mortgages are unlikely to continue to fall every week.
Prime Minister Rishi Sunak said yesterday there was “light at the end of the tunnel” in his plan to halve inflation and that cutting inflation was the “best way” to cut interest rates.
There have been warnings of a slowdown in the housing market due to the cost of living crisis, causing providers to cut prices as competition for good deals increases.
The news of reductions will be welcomed by the 1.3 million borrowers facing the end of an existing fixed-rate agreement on their home this year, as they have been fearing a large increase in their mortgage costs.