Barclays, Halifax, NatWest and Santander make big mortgage pricing improvements
Banks and building societies are pushing harder to tempt borrowers to take their mortgages, and they are competing to issue the most competitively priced rates.
The cost of funding mortgages has been coming down, meaning the price reductions have filtered through to borrowers. However, many lenders have not lent anywhere near as much money as they would have liked, leading to the recent price war.
Hundreds of thousands of mortgage holders will need to switch deals over the festive period, and while many of them will face big repayment hikes, they will not be quite as drastic, thanks to the recent price reductions.
After offering high rates for such a long period, there are now two-year fixes starting at 4.7% and five-year fixes starting at 4.4%. It is worth noting the big lenders offer cheaper rates to borrowers purchasing a property rather than remortgaging.
Here is a summary of the changes many of the biggest lenders have made this week to make improvements, including Barclays, Halifax, Santander, and NatWest:
Halifax for Intermediaries mortgage rate changes
Halifax for Intermediaries has improved the pricing on its homebuyer mortgages, including first-time buyer, new build property, large mortgage loans and affordable housing products.
The rates have been improved by up to 0.72% on selected two-year and five-year fixed-rate mortgage products. The bank also reduces selected residential and buy-to-let fixed rates in the new business and product transfer ranges.
Santander for Intermediaries mortgage rate changes
Santander for Intermediaries has announced that it is making further rate changes to make its mortgages more affordable.
- Selected standard residential fixed rates were reduced by between 0.03% and 0.27%.
- Selected new build property fixed rates reduced by between 0.05% and 0.29%.
- Selected buy-to-let fixed rates reduced between 0.05% and 0.17%.
NatWest for Intermediaries mortgage rate changes
NatWest for Intermediaries has made a wide range of mortgage rate changes and lowered some of its buy-to-let mortgages by over 1%.
- Property purchase: Rate reduction of up to 0.26% and 0.30% on selected two and five-year deals.
- Remortgage: Rate reduction of up to 0.40% and 0.24% on selected two and five-year deals.
- First-time buyer: Rate reduction of up to 0.26% and 0.18% on selected two and five-year deals.
- Buy-to-let property purchase: Rate reduction of up to 0.42% and 0.55% on selected two and five-year deals.
- Buy-to-let remortgage: Rate reduction of up to 0.31% and 0.40% on selected two and five-year deals.
New Business Rate and Fee Changes:
- Buy to Let - purchase: Rate reduction of 1% and 1.06% on selected two-year deals. The product fee increased to £3,499.
- Buy to Let – remortgage: Rate reduction of up to 0.80% and 0.85% on selected two-year deals. The product fee increased to £3,499.
Barclays mortgage rate change announcement:
Following a further review of its mortgage offering against market funding, Barclays has confirmed it has reduced rates on a selection of products across our residential purchase and reward ranges.
These changes will see some of its mortgage available for loans between £2 million and £10 million property purchase and remortgage products reduced by as much as 0.57%. There is also positive news for borrowers with smaller deposits of at least five per cent.
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The information contained within was correct at the time of publication but is subject to change
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