Barclays, Halifax, NatWest and Coventry among wave of lenders to improve mortgage rates
Tags: Remortgages, Residential mortgages
Quick Summary
Barclays, Halifax, NatWest, Lloyds and Coventry Building Society are among the major mortgage lenders cutting fixed rates over the last few days, giving first-time buyers, home movers and remortgage customers more competitive options. Barclays has reduced selected purchase and remortgage rates, including two-year fixed rates for borrowers with larger deposits and smaller deposits of 5%. The latest mortgage rate cuts show lenders are competing harder for new business after a period of higher borrowing costs. Trinity Financial says borrowers should review their options carefully, as rates are changing quickly and the best mortgage lender will depend on deposit size, income, property value and whether the application is for a purchase or remortgage.
Some of the UK’s biggest mortgage lenders have reduced fixed rates, giving homebuyers and remortgage customers a welcome boost after a volatile few months for pricing.
Halifax, Lloyds, Coventry Building Society, Barclays and NatWest are among the lenders to have made changes, with banks trying to attract more borrowers as the housing market remains price-sensitive. Mortgage rates had risen earlier in the year as swap rates increased, but the latest round of reductions suggests lenders are now prepared to compete more aggressively for new business.
Barclays for Intermediaries lowered a selection of property purchase, remortgage and reward products from Friday, 29 May. Its two-year fixed purchase rate at 60% loan-to-value with a £899 fee has fallen from 4.60% to just below 4.40%, while its 5% deposit three-year fixed rate with a £899 fee has dropped from 5.85% to just over 5.4%. Barclays has also reduced its 5% deposit five-year fixed rate with no product fee to just below 5.30%.
Aaron Strutt, product and communications director at Trinity Financial, said: “ While the Halifax price cuts are not huge, at least they are heading in the right direction. These latest rate changes show how keen lenders are to write more mortgage business, especially as many borrowers have been holding off due to higher monthly repayments. Halifax is now offering two-year fixes from just over 4.40%, which are pretty much market leading, as well as five-year fixes from around 4.55%. Both of these rates are available for mortgages up to £2 million.
"Barclays’ reductions are welcome, especially as the bank now has fixes from just beow 4.40% and good tracker rates without early repayment charges. The price cuts should help first-time buyers, home movers and remortgage customers, although affordability remains the biggest challenge for many households."
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The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.
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