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In a refreshing turn of events for the UK mortgage market, major high street lenders have started to reduce their mortgage rates, signalling a potential relief for households grappling with financial pressures.
This shift follows the Bank of England’s recent decision to lower its Bank Rate to 5% from 5.25%, marking the first rate cut in over four years.
Significant Rate Reductions by Major Lenders
Lenders such as HSBC, Santander, and Nationwide have swiftly adjusted their borrowing costs in response to the Bank of England’s rate cut. Homeowners with tracker mortgages, which adjust according to the Bank’s base rate, are among the first to benefit.
Last week, Nationwide became the first high-street lender since April to offer a sub 4% deal. The building society is now offering a five-year fixed rate of 3.99% to house buyers who have a 40% deposit, although not to those remortgaging. Other lenders are expected to follow suit, with Natwest already offering a five-year fix at 3.97%, the lowest rate on the market at the time of publication.
Financial experts are now anticipating that rates could drop even lower, potentially reaching as low as 3.5% by early next year.
How We Can Assist You
As the mortgage landscape becomes increasingly favourable, now is an excellent time to consider your property purchase or remortgaging options. Our award-winning team is on hand to help you understand these market changes and prepare for your next steps.
Get in touch now on 0208 364 3444 alternatively click here to schedule a free consultation call.