HSBC and Santander have joined different mortgage lenders together with Virgin and The Mortgage Works by slicing their rates.
Mortgage brokers say they count on more high avenue lenders, such as the Halifax and Nationwide, to cut rates quickly, with one declare “it’s starting to feel like we could have a price war through the summer months”.
From Thursday Santander will scale back mortgage rates by up to 0.21 proportion factors whereas HSBC has cut some of its rates by up to to 0.24 proportion factors.
HSBC’s largest cut applies to anybody wanting to repair their mortgage fee for 2 years and has a deposit of 15%; clients with its Premier Banking account can take out a mortgage at 3.99% with a £999 charge.
Mortgage brokers instructed NewsWeb that this week’s reported drop in inflation might signal the beginning of a mortgage fee conflict.
David Stirling, director at Mint Mortgages & Protection mentioned: “The week is heating up as Virgin and The Mortgage Works have announced rate cuts this afternoon. This follows moves by Santander, HSBC and other lenders earlier in the week. It now feels like only a matter of time before other major lenders like Nationwide and Halifax are compelled to respond and sharpen their pencils. With a Bank of England rate cut looking increasingly inevitable, the outlook for borrowers is, at least for now, decidedly positive.”
Pete Mugleston, mortgage adviser at Online Mortgage Advisor commented: “With more and more lenders cutting rates, a trickle is fast becoming a flood, with a full-on rates war fast approaching. TMW’s 0.25% cut is aggressive and suggests we might see similar cuts from other lenders in the coming weeks as they respond. Borrowers are the winners here as the market becomes more competitive, giving them more options and encouraging more people to jump into the market rather than sitting on the fence, trying to time the market.”
Emma Jones, managing director at Whenthebanksaysno.co.uk commented: “More lenders are now following the initial rate cuts that we saw last week and it’s starting to feel like we could have a price war through the summer months. This is such good timing as many households will be coming out of their fixed rate deals over the summer. It’s time to lock in something competitive if you are within six months of your current deal ending.”
Jack Tutton, director at SJ Mortgages mentioned: “With the cost of borrowing for lenders continuing to fall, we should see this current trend continue as long as market costs continue to reduce. All of this is positive movement in the market is welcome news for home owners with a mortgage, who have struggled with higher rates. The hope is that the downward trend continues.”
Daniel Hobbs, CEO at New Leaf Distribution commented: “The good news for borrowers just keeps coming this week. Following this morning’s lower than expected inflation number, most now expect a cut from the Bank of England when the Monetary Policy Committee meets next month. If that happens, all bets are off.”
Imran Hussain, director at Harmony Financial Services commented: “The more, the merrier. It’s good to see Virgin and The Mortgage Works cut rates for borrowers. Crucially, this is positive news not only for residential borrowers but also landlords. It’s a great time to add heat to the market over the summer period. We can only hope this continues.”
Rohit Kohli, Director at The Mortgage Stop commented: “This is great news for borrowers. Virgin Money and TMW jumping in with rate cuts shows the gloves are off and lenders are now in an all-out battle for business. We’re seeing some real momentum in the market, and borrowers have a golden window to secure better deals. But with so much uncertainty in the global economy, these rates may not stick around for long, so anyone considering a move should act fast before the next twist in the rate rollercoaster.”
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