Major lenders expected to slash mortgage rates this week

Most of the UK’s largest lenders are expected to cut mortgage borrowing rates this week in a bid to generate new business, amid a bleak outlook for home buying.

Analysts expect major lenders, including Lloyds Banking Group, Barclays, Nationwide and Santander, to reduce borrowing rates to help stimulate home buyer demand.

HSBC and NatWest announced they were cutting their mortgage rates again yesterday in a bid to ease some pressure on UK home buyers and those seeking remortgage deals.

HSBC said it was cutting rates across many of its new fixed products – including some of its first-time buyer, home mover and remortgage deals – with effect from today.

Nicholas Mendes​, a mortgage technical manager at the broker John Charcol, believes that HSBC had “laid down the gauntlet and shown they mean business” with their latest announcement.

“This is their second rate reduction in a week, along with criteria changes which extend terms to 40 years,” he added.

Fellow high street lender NatWest said it would also be cutting rates by up to 0.35% on selected fixed deals from today.

Accord Mortgages, part of Yorkshire Building Society, also said that all of its fixed rates were being cut by 0.2% from Tuesday.

Stephen Perkins, the MD of Yellow Brick Mortgages, said: “No doubt there will be more of these reductions over the week, as all lenders follow in a conga line.”

Lewis Shaw, the owner of the broker Shaw Financial Services, added: “It would appear that lenders are struggling to get new business, and the rate tap is the only tool they can turn to.”

 

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7 Comments

  1. Bless You

    Great. So now we can sell a house. Spend weeks on legals and mortgages and then a dopey surveyor will down value by 20%, so he doesn’t get sued and ruin his retirement..

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  2. LVW4

    The companies who bought run-off books have pushed their rates through the roof, and are largely responsible for the problems many landlords are facing. They won’t be reducing their rates any time soon because they don’t have competition, and landlords can’t remortgage, so they are prisoners.

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    1. Bless You

      Dopey Shelter didnt think of this. Ending admin fee’s for timewaster tenants has backfired massively

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  3. scruffy

    “amid a bleak outlook for home buying”………..so what better time for Rightmove to write to me about forthcoming price changes inc. 22.5% increase on core membership ?  We rely on Rightmove for its annual “slap in the face increases” (“we want to help agents”)  but this year they appear to have opted for a knee in the groin.

    C’mon eBay or Amazon, wipe them out with a more competitive offering.

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    1. LAMBSEY21

      Lets all leave them on mass ?

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      1. Bless You

        agree , even if its only for 3 months so that the rat agents can go back if they bottle it.

        As soon as zoopla is the main portal with on the market keeping them in check,,agents will be £1500 a month better off.

        What will you do with the money?

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        1. scruffy

          survive through the cyclical downturn, protect my staff, my premises and the service level we provide at the coalface

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