Major banks have announced a new round of home loan rate cuts amid hopes lower interest charges are here to stay.
NatWest, Barclays and HSBC are reducing the prices on new home loans both for buyers and people looking to remortgage.
The best value long-term fixed rate deals are now being offered at around 4 percent although a number come with hefty fees.
Barclays has announced selected rate cuts of up to 0.2 percent from tomorrow. For example, a two-year fix without a product fee is down to 4.75 percent.
NatWest deals are coming down by 0.19 percent. For example, a two-year fix with a 60 percent loan to value is down to 4.4 percent. HSBC will announce its new rates tomorrow.
Mortgage brokers welcomed the cuts. For example, Iain Swatton, Director at Exemplar Financial Services, said: “Today’s flurry of rate reductions is a very positive sign, with lenders actively pricing to encourage buyers to take the plunge.
“This is great news for remortgage clients coming off low rates, as it helps soften the blow.
“It seems the winds of optimism are starting to blow through the market. All in all, this is a great start to September for borrowers.”
Craig Fish, Director at Lodestone Mortgages & Protection, told Newspage: “It’s only the first working day of the month but lenders are firing on all cylinders.
“There are good reductions from several lenders already this morning, and more lenders are likely to follow.”
Rohit Kohli, Director at The Mortgage Stop, said: “The mood among lenders is clearly that these levels of rates are here to stay for a while longer and, as long as there are no shocks with inflation next week, then borrowers should act quickly.”
Justin Moy, Managing Director at EHF Mortgages commented: “There is definitely an air of optimism among borrowers. Transaction numbers are steadily increasing and much of that pent-up demand is starting to make its move, with more property available to buy.”
Stephen Perkins, Managing Director at Yellow Brick Mortgages commented: “It’s back to school and this is the rate equivalent of a pile-on.”
