AGENT: Banks ‘cutting mortgage rates ahead of Budget and BoE decision’
Lenders fighting to attract homebuyers are encouraged by lower inflation and a possible base rate cut, according to Mary-Lou Press of Propertymark.
Homebuyers are now able to access lower rate mortgage deals as lenders cut offers ahead of the Budget on Wednesday and a possible base rate cut next month, a leading estate agent has said.
Lenders were encouraged by the inflation figure last week, which showed a drop from 3.8% to 3.6%.
Now, banks and building societies have reduced their prices, with Santander cutting some of its fixed rates to a three-year low, while Barclays and Halifax lowered rates by up to 0.3%.
Cheapest
HSBC is offering the cheapest deal for first-time buyers with a two-year fixed rate of 3.66%, while Barclays has the lowest five-year rate at 3.82%.
The Bank of England’s decision makers announce their next base rate decision on 18 December.
After a prolonged period of higher rates, we are beginning to see greater competition among lenders.”
Mary-Lou Press, President of NAEA Propertymark (main picture), says: “Falling inflation and the growing likelihood of a base rate cut will be welcome news for many households, particularly those looking to secure a new mortgage deal.
“After a prolonged period of higher rates, we are beginning to see greater competition among lenders, with average fixed rates edging downward,” she says.
“This provides a degree of stability and confidence for some buyers and homeowners who have been waiting for calmer conditions to move or remortgage.”
Quick to pass on
David Hollingworth, Associate Director at mortgage broker L&C, says: “The downward path for inflation is significant for mortgage holders. It’s likely to underline the market’s expectation of a Bank rate cut in December.
“Mortgage lenders have been quick to pass on the improved cost of funds, and there has been successive rounds of fixed-rate cuts by most big lenders.”
And Mark Harris, CEO at SPF Private Clients, says: “Lenders are keen to lend and have money available, and with the housing market subdued as a result of the impending budget they are competing to attract what business there is out there before the end of the year.”
