The back-to-back rate cuts from major lenders this week are “a clear sign that competition in the mortgage market is gaining momentum,” said Rachel Geddes, lender strategic director at the Mortgage Advice Bureau.
Barclays, NatWest, Santander and TSB are among the newest lenders to cut rates this week in a major wave of interest rate revisions.
NatWest has made cuts of up to 31 basis points, Santander to 21 basis points, TSB to 20 basis points and Barclays to 13 basis points.
Other lenders, including Molo, have cut prices by up to 53 basis points.
Meanwhile, Kensington has made more modest cuts, reducing some buy-to-let transactions by as much as 10 basis points.
Commenting on the latest price cuts, Geddes said: “For first-time buyers, lower rates can help ease pressure on affordability. This is welcome news, especially as our research found that 45% of aspiring homeowners cite property prices as the main barrier.”
“Customers switching from a mortgage will benefit from the wider choice of products, while those moving can also experience lower borrowing costs, making it easier to take that next step.”
“While these reductions won’t change affordability overnight, they add to the momentum we’ve seen in recent weeks as lenders compete more aggressively for business. Borrowers willing to act will therefore likely find a wider range of competitive options available.”
“As rates and products change regularly, speaking to a mortgage broker should be the first point of contact. They can help borrowers compare the options available, understand what they qualify for and get a deal that’s right for their circumstances.”
Following MAB’s comments, HSBC today said it will make a number of cuts to residential mortgage rates and BTL from tomorrow.
However, the lender never tells brokers in advance what the new rates will be and the new prices will be available tomorrow.
Elsewhere, Coventry closes all fixed rates for intermediaries at 65% and 85% LTV, excluding offset and interest compensation.