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Major lenders expected to slash mortgage rates this week

Property Market

Most of the UK’s largest lenders are expected to cutmortgage borrowing rates this week in a bid to generate new business, amid ableak outlook for home buying.

Analysts expect major lenders, including Lloyds BankingGroup, Barclays, Nationwide and Santander, to reduce borrowing rates to helpstimulate home buyer demand.

HSBC and NatWest announced they were cutting their mortgagerates again yesterday in a bid to ease some pressure on UK home buyers andthose seeking remortgage deals.

HSBC said it was cutting rates across many of its new fixedproducts – including some of its first-time buyer, home mover and remortgagedeals – with effect from today.

Nicholas Mendes​, a mortgage technical manager at the brokerJohn Charcol, believes that HSBC had “laid down the gauntlet and shown theymean business” with their latest announcement.

“This is their second rate reduction in a week, along withcriteria changes which extend terms to 40 years,” he added.

Fellow high street lender NatWest said it would also becutting rates by up to 0.35% on selected fixed deals from today.

Accord Mortgages, part of Yorkshire Building Society, alsosaid that all of its fixed rates were being cut by 0.2% from Tuesday.

Stephen Perkins, the MD of Yellow Brick Mortgages, said: “Nodoubt there will be more of these reductions over the week, as all lendersfollow in a conga line.”

Lewis Shaw, the owner of the broker Shaw Financial Services,added: “It would appear that lenders are struggling to get new business,and the rate tap is the only tool they can turn to.”

Source: Property Industry Eye