Financial Times - Lenders shake up mortgage market with rate cuts
Barclays and Santander were among several lenders this week to lower their mortgage rates, adding to the momentum for cheaper UK home loan deals after HSBC and Halifax reduced rates last week.
Aaron Strutt of Trinity Financial told the Financial Times that the Co-operative Bank pulled its new mortgages after two days, but it left competitively priced deals for those seeking £750,000+ mortgages. He said: "We are in a fast-moving market. By targeting wealthier borrowers, the Co-op does not have to issue so many mortgages to lend lots of money."
One factor behind the recent mortgage pricing improvements is the reduction in SWAP rates. He added: "The lenders know the only way to get the moving again and to boost some of the low lending figures they had last year is to issue cheaper rates."