Lenders begin cutting fixed rate mortgages costs

This week has seen several lenders make reductions to its fixed rate mortgages, meaning that those looking to purchase a new home in the coming months may benefit from a lower cost of borrowing.

The first of the major lenders to make the cuts was NatWest, who cut its fixed rate deals by up to 0.17 percent. The largest cut was made to remortgaging rates with a five-year fix, which can now be secured for as low as 4.41 percent. Barclays soon followed suit, leading to speculation that more cuts were on the horizon.

The most recent additions to the trend are HSBC and Skipton Building Society. HSBC has recently announced reductions in the cost of a range of two, three and five-year rates for both residential and buy-to-let loans. The two-year fixed rate for a residential mortgage is now down to 4.88 percent, and the five-year rate has been reduced down to 4.44 percent. For Skipton Building Society, the two-year fixed rates for home purchasing start from 5.18 percent and its five-year rates start at 4.64 percent.

The reductions come amidst speculation that the Bank of England will reduce interest rates when they next meet on 1^st August. The organisation chose to maintain interest rates at 5.25 percent at its recent meeting, however the vote was contested and the tone of the organisation has shifted since.

Jason Blunden, Managing Director at Evolve Financial Solutions, said: “With the SWAP rates reducing now quicker than they have for a while, we expect fixed rates to follow and the trend has started this week. We have also found that Natwest have also increased their loan to value to 90% on new build houses and 85% on new build flats, so between the rate reduction and more lenders coming into the 90% lending space on new build it’s been a very positive week”.

For free mortgage advice, call Evolve on 01473 603 211 or visit https://www.evolvefs.com/.

To find out more about our available homes, visit https://allison-homes.co.uk/developments/.