Banks slash mortgage rates in fierce competition
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The UK’s largest banks have become engaged in a 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 who have lowered 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 elevated interest rate environment. This year, around 1.6 million mortgages are due to come off fixed rates, The Herald reports.
The average two-year fixed-rate homeowner mortgage has dipped slightly, although the average five-year rate remains unchanged. Despite the Bank of England’s base rate holding at 5.25%, recent inflation figures suggest a potential rate cut on the horizon.
This, coupled with a slight recovery in the housing market, has prompted lenders to compete for business. While swap rates, which influence fixed-rate mortgages, have not consistently fallen, lenders are keen to attract borrowers.