NATWEST, Halifax and Virgin Money have made a major change to mortgage rates – and it’s good news for homeowners.
The trio of banks have all announced plans to slash rates, with the shift coming into effect tomorrow.
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The reductions will be applied to both new and existing customers, so every property owner will feel the benefit.
As house prices experience their biggest drop in 14 years and high inflation remains set in, mortgage rates have been a key source of pain for Brits.
But with demand for homes plummeting amid the cost of living crisis, lenders face a race to the bottom on rates to attract a dwindling number of customers.
Those buying or remortgaging with NatWest, for example, are now set to see a drop of up to 30% on certain mortgage products.
The bank’s current cheapest five-year fixed rate of 5.84% is expected to fall to around 5.64% as of tomorrow.
It comes after a raft of other lenders took a hatchet to their rate as inflation declined from 8.7% to 7.9%.
HSBC, Nationwide and TSB were among those bringing down the cost of servicing a mortgage as price rises begin to slow.
Meanwhile, Prime Minister Rishi Sunak has pledged to halve inflation by the end of the year, which, if achieved, could see further reductions in rates.
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The Bank of England’s Monetary Policy Committee is scheduled to meet on Thursday to determine next steps and are expected to settle on a smaller increase in the base interest rate than was previously predicted.
Nationwide has reduced its rates by up to 0.35% and HSBC has cut rates by the same amount.
Meanwhile, TSB has lowered its fixed-term mortgage rates by up to 0.55%.
