Major mortgage lenders will today cut home loan prices again, as speculation grows that the Bank of England will reduce the base rate soner rather than later – possibly as early as next month.
Barclays, HSBC, Halifax, Santander and NatWest are all making a number of interest rate reductions across various mortgage deals today, with more lenders expected to follow suit over the next few days.
It marks the latest flurry of mortgage rate cuts in what is becoming an ever cheaper market for Britain’s borrowers.
Since the start of July, the lowest five-year fixed rate mortgage has dropped from 4.28% to 3.69%.
Meanwhile, the lowest two-year fix has fallen from 4.68% to 3.89%.
A more cautious cautious tone from the Bank of England governor has been replaced with becoming ‘ a bit more aggressive’ which has had a positive response from Swap rates – see chart below – and that has encouraged lenders to get rates.
Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “A more aggressive approach to rate reductions has been welcomed by the markets, with Swaps falling on the back of the governor’s comments, which should feed through to even lower mortgage pricing.”
“This ongoing rate war among lenders is great news for borrowers as there are some really compelling deals being launched, which will go some way to helping affordability,” he added.
Swaps reaction to Bailey’s comments:
|
1yr |
2yr |
5yr |
10yr |
|
|
30/09/2024 |
4.26 |
3.86 |
3.62 |
3.64 |
|
01/10/2024 |
4.30 |
3.89 |
3.61 |
3.61 |
|
02/10/2024 |
4.30 |
3.91 |
3.63 |
3.63 |
|
03/10/2024 |
4.23 |
3.85 |
3.60 |
3.62 |
Boost for buyers as BoE chief says interest rate cuts could be more ‘aggressive’
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