NatWest, HSBC and Barclays are among the lenders to cut mortgage rates this week.
This morning, Coventry Building Society also joined the price cuts, announcing cuts for both residential and buy-to-let customers.
And Halifax also announced price cuts late last week, as it revealed increasing the loan limits for starters.
It appears that all borrowers – from those with smaller deposits taking their first steps on the ladder to home movers with higher equity and those refinancing – are now benefiting from price changes.
One of the highlights of these rate cuts is a five-year fixed rate from Barclays, with an interest rate of 3.95% for customers with equity up to 25%. Until recently, rates below 4% were limited to those with at least 40% equity.
There are now also more deals below 4% on the market for customers taking out a new mortgage. Indeed, Barclays’ new price list includes two fixed interest rates with a five-year term of 3.88% and 3.93% respectively. Both have a £999 fee and are aimed at those who need to borrow up to 60% loan-to-value (LTV).
Emma Jones, director of Whenthebanksaysno.co.uk, said via the Newspage agency: “What a fantastic start to September. The nights may be starting to draw in, but the momentum that started over the summer continues. Lenders are now in a serious battle for market share and borrowers are the winners.”
Brokers were particularly pleased that those who refinanced their mortgages also began to take advantage of the lower rates on offer.
Gabriel McKeown, head of macroeconomics at Sad Rabbit Investments, also said via Newspage that we were entering a new and more positive era for lending.
“This latest round of mortgage rate cuts has emerged as a much-needed ray of sunshine piercing the economic clouds of the UK housing market. There is growing optimism among homeowners and potential buyers, with cuts across the board providing financial relief to many struggling to transition from historically low interest rates.
“This move represents cautious optimism in the face of economic headwinds, and could potentially signal a gradual easing of credit conditions as we enter the latter part of 2024.
“Yet with the Bank of England base rate remains stable at 5%The move suggests that Coventry Building Society is banking on falling swap rates, which will have a more direct impact on mortgage prices than the base rate itself.
“Therefore, further cuts in mortgage rates are dependent on continued economic stability and the BoE’s future monetary policy.
“So while borrowers should remain cautious as lenders cut rates, the winds of change are finally ushering in a new era of affordability for homeowners.”