Mortgage relief: Santander, HSBC and Barclays announced rate cuts yesterday
Three of Britain’s biggest mortgage lenders are reducing several fixed-rate deals in a welcome boost for borrowers.
Santander, HSBC and Barclays announced rate cuts yesterday in a wave that could trigger other lenders to slash rates over the coming weeks.
HSBC has reduced the rates on its two, three and five-year deals for borrowers with a deposit of less than 10 per cent, but has hiked rates for those who own a greater share of their home.
Barclays has also cut a handful of its purchase and remortgage rates by up to 0.25 percentage points.
For example, its two-year fixed-rate deal with a £999 fee for borrowers who own more than 25 per cent of their home fell from 4.9 per cent to 4.7 per cent.
And Santander will cut several of its fixed-rate and buy-to-let deals by up to 0.21 percentage points from tomorrow.
The Bank of England held the base rate at 5.25 per cent last week for the fifth time in a row, as governor Andrew Bailey confirmed ‘things are moving in the right direction’ towards an interest rate cut.
Elliott Culley, from Switch Mortgage Finance, says: ‘Rate reductions from Barclays should signal the beginning of rate reductions among the big six. Further rate reductions are likely.’
