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Santander and Barclays lower fixed rate mortgages as HSBC targets borrowers with energy efficient homes

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Santander for Intermediaries has announced that it will lower the price of its mortgages as funding costs continue to decrease.

Santander has lowered some of its fixed-rate mortgages by between 0.02% and 0.23% and improved its buy-to-let rates by up to 0.12%. The bank offers borrowers a range of fixed and tracker rates, provided they have a 5% deposit and a good credit score.

Santander is not the only lender to announce pricing improvements. Barclays has confirmed it is lowering some rates by up to 0.25% for borrowers looking to purchase a property or remortgage. Leeds Building Society is also lowering some fixes by up to 0.2%, and Gen H is also lowering some fixes by up to 0.2%.

Aaron Strutt, product director at Trinity Financial, says: “It is good news that Santander has lowered its rates and other big lenders may well do the same thing as the cost of funding seems to be coming down. It normally takes time for pricing improvements to filter through to new business rates.

“The five-year fixes are still the most competitively priced rates, with Barclays offering a deal to premier customers priced just over 4.15%. NatWest’s and Nationwide’s rates are not much more expensive, provided you have a larger deposit. The lowest two-year fixes are also priced around 4.6%.”

HSBC for Intermediaries has pushed up some of its mortgage rates. The bank has also launched an Energy Efficient Homes range for UK Residential First-Time Buyers, Homemovers, and Remortgage customers within our Intermediary channel.

The proposition will offer an additional cashback incentive, when compared with HSBC's standard range equivalent, to customers purchasing or remortgaging a property which is confirmed to have an Energy Performance Certificate (EPC) rating of A or B until further notice.

Capital Economics predicts the Bank of England base rate could fall to as low as three per cent in 2025 

Economists at Capital Economics, a consultancy, think the Bank will likely have to cut interest rates much faster than markets expect in response to plummeting inflation. Interest rates could fall to as low as three per cent next year as the Bank of England lowers the cost of borrowing in response to lower inflation.

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The information contained within was correct at the time of publication but is subject to change.

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