Mortgage Rate Cuts: These Big Five Banks Are Cutting Home Loan Costs

Five more mortgage lenders have today announced cuts to home loan prices.

Barclays, HSBC, Halifax, Santander and NatWest are making a series of interest rate reductions across various mortgage deals.

It marks the latest wave of mortgage rate cuts in what is becoming an increasingly cheaper market for British borrowers.

Since the beginning of July, the lowest five-year fixed-rate mortgage has fallen from 4.28 percent to 3.69 percent.

Meanwhile, the two-year lowest fixing has fallen from 4.68 percent to 3.89 percent.

Barclays set the wheels in motion this morning when it announced a series of cuts mainly benefiting first-time buyers and house-movers, including a series of deals below 4 per cent for those with the biggest deposits.

Its lowest two-year fixation for buyers with a deposit of 40 per cent or more will fall to 3.99 per cent from tomorrow.

On a £200,000 mortgage that would be repaid over 25 years, that would equate to £1,055 a month.

For buyers with a 15 per cent deposit, Barclays will offer a rate of 4.46 per cent, which, unless beaten tomorrow, will be a new best buy.

Barclays says it is also cutting rates on its stepping stone and mortgage guarantee products aimed at first-time buyers struggling to get a deposit.

The Barclays Springboard mortgage requires family or friends to help with the deposit.

In this case, the helper provides a 10 percent deposit as security for five years and is placed in a Helpful Home account that earns interest and is returned after five years.

HSBC cuts rates

Shortly after Barclays, we got the news that HSBC was making another wave of mortgage rate cuts.

It says all of its residential and buy-to-let deals are reducing by up to 0.16 percentage points.

HSBC confirmed that its two- and five-year fixed mortgages, for both movers and first-time buyers, are reducing by up to 0.25 percentage points.

Its lowest five-year fix for those remortgaging with at least 40 per cent equity is now priced at 3.83 per cent.

For those who need a mortgage to cover 70 or 75 per cent of their home’s market value, HSBC’s five-year products are priced at £999 and are also priced below 4 per cent, 3. 99 percent.

HSBC has also made further reductions in the highest loan-to-value ranges for first-time buyers, offering 4.16 per cent to those who fix their loan for five years with a 20 per cent deposit. The deal also offers £350 cashback.

Removal companies buying with a 15 per cent deposit can now earn 4.16 per cent by fixing a five-year term with HSBC.

Landlords looking to remortgage buy-to-let investments in their own names will also have reason to rejoice.

Those who fix their contract at five years can remortgage with HSBC at a rate of 3.99 per cent with a product fee of £1,999 if they have at least 35 per cent equity in the property.

On a £200,000 interest-only mortgage, that would mean paying £664 a month.

Given that the average five-year fixed rate across the market is 5.25 per cent, according to Moneyfacts, that could represent a monthly saving of £211.

Homeowners rejoice: Halifax reduces remortgage rates by up to 0.24 percentage points

Halifax cuts rates

Halifax then followed suit, reducing the mortgage rate on select products by up to 0.11 percentage points for house-movers and first-time buyers.

Homeowners who remortgage will benefit even more: Halifax has announced reductions of up to 0.24 percentage points.

Mortgage rates will go into effect starting tomorrow.

Nicholas Mendes, technical director at mortgage broker John Charcol, said: ‘The latest round of rate cuts announced by Halifax is not a surprise, given the broader trend seen in the market over recent days.

‘With HSBC and Barclays leading the way with similar rate cuts, Halifax’s move appears to be part of a recalibration of mortgage prices across the industry.

‘Halifax’s rate reduction signals a targeted strategy to attract new customers and retain existing ones.

‘Extending end dates for all products also provides borrowers with greater flexibility.

“The continued revision of prices for various types of mortgage products reflects banks’ efforts to improve competitiveness.”

Santander and NatWest cut rates

Santander and NatWest also announced a wide range of range cuts for tomorrow.

Starting tomorrow, home buyers and remortgaging will see Santander’s fixed rate transactions fall by 0.29 percentage points.

This means that from tomorrow Santander will offer the lowest five-year solution on the market for homebuyers purchasing with the largest deposits.

All of its mortgage rates for new-build purchases are also falling by up to 0.19 per cent along with all of its fixed buy-to-let rates, which are falling by up to 0.17 per cent.

Meanwhile, NatWest is also making some healthy cuts to fixed rate deals aimed at homebuyers, remortgagors and homeowners.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “A number of lenders are already in the process of repricing – Coventry’s two- and five-year fixes, which top the best buy charts at 3.89 and 3 .69 percent respectively, will retire tonight.” , while HSBC is adjusting its prices downwards today and NatWest and Barclays are doing so tomorrow.

‘Santander will also change its prices tomorrow and is likely to top the ‘best buys’ with its new deals: a two-year call option at 3.84 per cent for those borrowing at a 60 per cent loan-to-value ratio and a five-year fix at 3.68 percent. percent, also at 60 percent LTV.

“This current rate war between lenders is great news for borrowers as there are some really interesting offers being launched that will go some way to helping affordability.”

Will mortgage rates go down?

Today’s mortgage rate cuts come after Bank of England Governor Andrew Bailey signaled the central bank could take a “more aggressive” approach to interest rate cuts if economic conditions warrant it. allow.

The Bank of England opted to keep the base rate at 5 percent last month, after opting to cut it in early August.

“Following the Governor’s comments, which indicated possible lower long-term interest rates, it is likely that the markets will readjust their forecasts,” Mendes added.

“If the Bank of England cuts the base rate to 4.75 per cent or even 4.5 per cent by the end of this year, it could have a significant impact on mortgage rates overall.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, said markets have welcomed a more aggressive approach to rate cuts.

“With swaps falling following the Governor’s comments, this should lead to even lower mortgage prices,” Harris said.