Financial Times - UK lenders cut mortgage rates in race for new year buyers

Lenders have kicked off the year with rate cuts across a series of mortgage products, boosting incentives for purchasers at the start of the buying season.  HSBC, Halifax, Barclays, TSB, NatWest, Nationwide, Clydesdale and Skipton building societies are among lenders to announce reductions in their rates for their fixed or variable mortgages over the past 10 days, following a cut in the Bank of England’s base rate to 3.75 per cent in mid-December. 

Nationwide this week announced cuts of up to 0.2 percentage points on its first-time buyer and home mover mortgages, bringing the interest rate for a two-year fix for those with a 40 per cent deposit down to 3.5 per cent with a £1,499 fee, and 3.7 per cent for a five-year fix. 

Aaron Strutt, product director at broker Trinity Financial, said: “We expected to start this year with the lenders cutting their rates and making them more attractive to borrowers, and that’s exactly what’s happening.”

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