Homeowners will enjoy cheaper mortgages as three major high street lenders have slashed rates on over 100 deals, reversing weeks of increases.
Barclays, HSBC, and TSB are all poised to decrease fixed-rate offerings, providing households with potential savings of hundreds of pounds annually.
Brokers express confidence that these cuts will prompt other lenders to take similar actions. Hina Bhudia from Knight Frank Finance noted, "HSBC's already competitive rates make this move a significant statement. It's likely we'll see more lenders follow suit."
Barclays will lower fixed rates on purchase and remortgage deals by up to 0.45 percentage points. One of its five-year fixes will drop from 4.77% to 4.32% for borrowers with a 40% deposit. This reduction would decrease monthly payments from £1,143 to £1,092 for a borrower with a £200,000 loan over 25 years.
HSBC is lowering interest rates on over 100 two, five, and ten-year deals for homeowners and landlords. TSB has also reduced rates on select two and five-year deals.
Lenders had raised costs earlier but held off after the Bank of England kept borrowing rates steady at 5.25% last week. A rate cut might occur next month if inflation continues to decline.
