Most of the UK’s largest lenders are expected to cut mortgage borrowing rates this week in a bid to generate new business, amid a bleak outlook for home buying.
Analysts expect major lenders, including Lloyds Banking Group, Barclays, Nationwide and Santander, to reduce borrowing rates to help stimulate home buyer demand.
HSBC and NatWest announced they were cutting their mortgage rates again yesterday in a bid to ease some pressure on UK homebuyers and those seeking remortgage deals.
HSBC said it was cutting rates across many of its new fixed products – including some of its first-time buyer, home mover and remortgage deals – with effect from today.
Nicholas Mendes, a mortgage technical manager at the broker John Charcol, believes that HSBC had “laid down the gauntlet and shown they mean business” with their latest announcement.
“This is their second rate reduction in a week, along with criteria changes which extend terms to 40 years,” he added.
Fellow high street lender NatWest said it would also be cutting rates by up to 0.35% on selected fixed deals from today.
Accord Mortgages, part of Yorkshire Building Society, also said that all of its fixed rates were being cut by 0.2% from Tuesday.
Stephen Perkins, the MD of Yellow Brick Mortgages, said: “No doubt there will be more of these reductions over the week, as all lenders follow 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.”
