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Mortgages Update: Lenders cut rates

More lenders continue to cut mortgage rates

Despite last week’s increase to the Bank of England Bank Rate, mortgage lenders continue to cut rates, in a move that offers confidence that the markets expect rates to keep on falling in the medium to long term.

Below is a selection of mortgage rate cuts that have been recently announced by the big lenders.

  • HSBC has cut its fixed rates for residential and buy-to-let customers. It follows a rate cut for high loan to value (LTV) customers at the end of last week. The rate reductions, effective today will benefit first-time buyers, existing borrowers, and movers, remortgage customers and existing and new buy-to-let customers as well as international residential customers.

  • Nationwide building society has cut rates across its fixed and tracker mortgage range. The reductions were effective from last week across remortgage, home mover and first-time buyer deals. It is offering a five-year fix at 3.94% (60% LTV) with a £999 fee, or at 3.99% (75% LTV) with the same fee. The two-year fee-free fixed rate is at 4.49% (60% LTV). The three-year fixed-rate first-time buyer deal is 4.89% (90% LTV) with a £999 fee.

  • NatWest has reduced its buy-to-let fixed rates by up to 0.27 percentage points. For BtL it has a five-year fix (75% LTV) at 4.62% with a £995 fee. Its BtL green mortgage five-year fix is now at 4.51% (65% LTV), also with a £995 fee. For residential fixed rates the two-year fix at 90% LTV is increased by 0.06 percentage points to 4.99% while the five-year fix has risen 0.05 percentage points to 4.58%. Both deals have a £995 fee.

  • HSBC has cut fixed rates at high loan to value (LTV) ratios across its range for new and existing customers, including first-time buyer deals. Its two-year fix for new residential mortgage customers at 80% LTV has fallen and is now 4.59%, the three-year fix is 4.54% and the five-year fix is 4.24%, also at 80% LTV.

This is a positive sign that should be shared with any sellers or buyers who are nervous in the current market...



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