With effect from today, TSB has made cuts of up to 0.25% on its fixed-rate deals for homeowners and first-time buyers.
Meanwhile, HSBC has reduced rates across residential and buy-to-let mortgages and Barclays has slashed the prices on fixed rates too.
These are not the only lenders who are making price cuts, with Skipton Building Society and MPowered also announcing they were cutting rates this morning.
A number of these price reductions are being made to high loan-to-value mortgages – these are loans for a higher proportion of a property’s value. It means borrowers with smaller amounts of equity are now benefiting from rate cuts too.
Justin Moy, managing director at EHF Mortgage, speaking via the Newspage agency, said: “Higher loan-to-value borrowers will be delighted to see their rates improved. The interesting move by Barclays to significantly cut their follow-on rate by 1.5% today should not be missed.
“This may support improved affordability figures shortly and reduce payments for those stuck on this lender’s equivalent of [Standard Variable Rate] SVR.”
Why it’s important to keep tracking mortgage rates
These reductions come after the Bank of England cut the base rate by 0.25% from 5.25% to 5% and will be a welcome relief to borrowers who have been watching mortgage rates climb relentlessly for the last two years.
And for anyone who is poised to take out a mortgage the advice is to keep a close eye on mortgage rates, even whilst your mortgage is being processed.
Hannah Bashford, director at Model Financial Solutions, speaking via the Newspage Agency said: “If this isn’t a positive sign on where interest rates are going, I don’t know what is.
“It’s now more important than ever to look at the whole of the market and make sure, if you’re purchasing or remortgaging, that you are tracking rates.
“I have made four changes to one client’s mortgage application in the past six weeks alone and if you go direct a lender is simply not going to tell you of these changes or encourage you to adjust your rate.”
Data from Moneyfactscompare.co.uk shows average mortgage rates have fallen since the start of July quite significantly.
In the first week of July, the typical two-year fixed rate was 5.93% but today it is 5.62%. For a five-year fix the average rate has fallen from 5.51% in early July to 5.25% now.
