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Banks cut mortgage rates in fierce competition
The UK’s biggest banks have engaged in fierce competition to attract borrowers, resulting in significant cuts to mortgage rates.
Halifax, HSBC UK, Barclays, Santander, Natwest and Yorkshire Building Society are among those to have slashed their fixed rate deals this week.
The move could offer relief to those seeking better deals, although rates remain higher than in previous years due to the high interest rate environment. This year, about 1.6 million mortgages are expected to switch from fixed rates, The Herald reports.
The average two-year fixed-rate mortgage for homeowners has fallen slightly, although the average five-year rate remains unchanged. Despite the Bank of England’s base rate remaining at 5.25%, recent inflation figures suggest a potential rate cut is on the horizon.
That, coupled with a modest recovery in the housing market, has lenders competing for business. While swap rates, which influence fixed-rate mortgages, have not fallen consistently, lenders are eager to attract borrowers.