NatWest, HSBC and Barclays are among the lenders to have cut mortgage rates this week.
This morning Coventry Building Society also joined in with price reductions, announcing cuts for both residential and buy-to-let customers.
And Halifax also unveiled price cuts at the end of last week as it revealed it would be increasing borrowing limits for first-time buyers.
It would seem all borrowers – from those with smaller deposits taking their first steps on the ladder to higher equity home movers and those remortgaging – are now benefiting from price changes.
Among the highlights of these rate cuts is a five-year fixed rate from Barclays which has a rate of 3.95% for customers with up to 25% equity. Up until recently the sub-4% rates had been confined to those with equity of at least 40%.
There are also now more sub-4% deals coming on the market for customers who are remortgaging. Indeed, Barclays new price list includes two five-year fixed rates at 3.88% and 3.93% respectively. Both have £999 fees and are for those who need to borrow up to 60% loan-to-value (LTV).
Emma Jones, managing director at Whenthebanksaysno.co.uk, speaking via the Newspage agency, said: “What a fantastic start to September. The nights may be starting to draw in but the momentum that started over the summer continues. Lenders are now in a serious battle for market share and borrowers are the winners.”
Brokers were particularly pleased that those who were remortgaging were also starting to benefit from the lower rates on offer.
Gabriel McKeown, head of macroeconomics at Sad Rabbit Investments, also speaking via Newspage said we were entering a new and more positive era for borrowing.
“This latest round of mortgage rate cuts has emerged as a much-needed ray of sunshine piercing through the economic clouds of the UK housing market. There is growing optimism among homeowners and prospective buyers, with reductions across the board offering financial relief to many struggling to transition from historically low rates.
“This move represents a cautious optimism in the face of economic headwinds, potentially signalling a gradual easing of lending conditions as we move into the latter part of 2024.
“Yet, with the Bank of England’s base rate remaining stable at 5%, the move suggests Coventry Building Society is banking on falling swap rates, which directly impact mortgage pricing more than the base rate itself.
“Therefore, further mortgage rate cuts hinge on continued economic stability and the BoE’s future monetary policy.
“So, although borrowers should remain cautious, with lenders slashing rates, the winds of change are finally ushering in a new era of affordability for homeowners.”
