HSBC, NatWest, Halifax have all cut rates – but more are coming as soon as today
Recent trends suggest that intermediaries may be able to offer homeowners and potential buyers lower mortgage rates – with The Leeds joining lenders who have already made rate reductions as soon as today, according to industry sources.
Several major lenders have recently reduced their rates, and commentators believe that fierce competition for market share this summer will lead to additional cuts.
Last Friday, both Barclays and HSBC lowered their rates for the second time in two weeks. This followed rate reductions from Halifax on Wednesday and Santander on Thursday.
Lenders are competing to secure business before the school summer holidays begin at the end of July, and with five-year money rates hovering around 3.94% there is still margin for mortgage lenders to trim rates to secure market share. Additionally, with the Bank of England expected to reduce interest rates, there's growing confidence in the housing market which could push rates down further.
With inflation rates hitting the Bank of England’s target rate of 2% in May, economists at Capital Economics are predicting a rate cut next month, with a further one later in the year to see 2024 out with a 4.5% rate. Financial markets are currently predicting rates to fall to 3.75 within 2 years.
Nick Mendes, of John Charcol, told inews.co.uk that he expects more cuts in the coming weeks. “[Lenders] will aim to stay ahead of competitors by continuously making marginal decreases, ensuring they maintain a competitive edge without sacrificing too much margin initially. Prospective buyers and home movers understandably delayed committing in recent months, but with mortgage rates turning a corner and a new government now at the helm, we can expect to see competition heating up again.”
The Leeds will be cutting rates from today – by as much as half a percent for corporate buy-to-let mortgages.
The Leeds new offerings;
- Selected residential rates: Reduced by up to 15 basis points (bps)
- Shared ownership rates: Reduced by up to 20 bps
- Limited company buy-to-let rates: Reduced by up to 50 bps
· New Product Launches:
- Two and Three-Year Residential Mortgages: Available at 65%, 75%, and 85% loan-to-value (LTV)
- Two-Year Fixed Rate Residential Remortgage Product:
- Reduced by 15 bps to 5.99% at 90% LTV
- Features: No completion fee, free standard valuation, and fees-assisted in-house legal service
- Three-Year Fixed Rate for Purchase and Remortgage:
- Launched at 4.89%
- Features: No completion fee, free standard valuation, and fee-assisted legals for remortgages
- Shared Ownership Five-Year Fixed Rate:
- Available up to 85% borrower share at 4.79%
- Features: No completion fee, free valuation, and £500 cashback
- Limited Company Buy-to-Let Five-Year Fixed Rate:
- Reduced by 0.50% to 5.89% at 80% LTV with a £1,999 fee
- Available for new purchases and remortgaging
Recent mortgage rate cuts
· Barclays:
- Date Announced: 02/07/2024
- Two-year fixed-rate at 75% loan-to-value (LTV): Reduced from 4.9% to 4.7%
- Premier purchase five-year fixed mortgage at 60% LTV: Reduced from 4.25% to 4.22%
- Date Announced: 25/06/2024
- Two-year fix at 60% LTV with an £899 fee: Reduced from 4.99% to 4.68%
- Premier two-year fix at 60% LTV with an £899 fee: Reduced from 4.98% to 4.67%
· HSBC:
- Date Announced: 28/03/2024
- Various reductions across two-, three-, and five-year fixes for up to 90% and 95% LTV.
· Halifax:
- Date Announced: 28/06/2024
- Two-year fixed-rate at 60% LTV: Reduced from 4.89% to 4.75%
- Five-year fixed-rate at 75% LTV: Reduced from 4.79% to 4.65%
· Santander:
- Date Announced: 02/07/2024
- Selected residential rates: Reduced by up to 0.12%
- Some buy-to-let fixed rates: Reduced by up to 0.21%
· NatWest:
- Date Announced: 08/07/2024
- Purchase product two-year fix at 75% LTV: Reduced from 4.85% to 4.67%
- Remortgage product five-year fix at 60% LTV: Reduced from 4.35% to 4.20%
- First-time buyer product two-year fix at 85% LTV: Reduced from 5.25% to 5.10%
