- Rates cuts come after barrage of hikes since the conflict in Middle East began
Two more mortgage lenders have announced they are slashing rates across their home loan deals.
From tomorrow, both HSBC and Halifax will cut rates following hot on the heels Santander and TSB, which both yesterday made similar moves.
Halifax is lowering rates by up to 0.35 percentage points on fixed rate deals aimed at home movers and first-time buyers.
HSBC won’t say what its rate changes are until tomorrow but says it’s cutting residential and buy-to-let mortgage rates.
It comes at a time when most banks are charging between 4.75 and 5 per cent for their two-year fixes. Only six weeks ago, those same lenders were charging between 3.5 and 3.75 per cent.
Nationwide Building Society is offering many of the lowest fixes at the moment priced from 4.66 per cent.
Boost for buyers: Halifax is lowering rates by up to 0.35 percentage points on fixed rate deals aimed at home movers and first-time buyer
Aaron Strutt of broker Trinity Financial said: ‘The big lenders really are lowering their rates now and the price cuts are getting more momentum.
‘With HSBC, Santander, and now Halifax making some pretty chunky rate cuts NatWest and Nationwide may well follow soon.
‘Santander is giving Nationwide a bit more competition with its latest rate changes and it now has two-year fixes from 4.7 per cent, three-year fixes from 4.78 per cent and five-year rates from 4.76 per cent.
‘These rate changes will come as a relief for many borrowers keen to get on the property ladder soon.’
Craig Fish, director at London-based Lodestone Mortgages, is also hoping that other big lenders will follow suit.
‘Halifax joining HSBC and Santander in cutting rates is genuinely positive news, and yes, this does feel like the start of a broader repricing as lenders compete for business in a quieter market,’ said Fish.
‘But let’s keep things in perspective. Rates are still over 1 per cent higher than before the Middle East conflict began, so whilst the direction of travel is welcome, we are a long way from where we were.
Fish is advising his clients not to wait for rates to fall back to where they think they should be as that may not happen anytime soon.
He added: ‘If you’re a first-time buyer or home mover, this window of competition between lenders is your opportunity.
‘Speak to a broker, understand your options and act while the market is working in your favour.’