Major lenders announce rate cuts

rate cuts

These include products offering for those with small deposits such as first-time buyers

Some major mortgage lenders have announced rate cuts to the products they are offering, including for those with smaller deposits such as first-time buyers.

Nationwide Building Society said that from January 13, it will reduce selected two, three, five and 10-year fixed rates and two-year tracker rates.

House purchase and re-mortgage deals are included in the rate reductions, with some cuts being made for borrowers looking for deals with deposits as low as 10 per cent.

Among the reductions, a two-year fixed rate for borrowers with a 25 per cent deposit will fall by 0.40 percentage points to 1.59 per cent with a fee of £999 and a two-year fixed rate for borrowers with a 10 per cent deposit will be reduced by 0.25 percentage points to 3.24 per cent with a £999 fee and to 3.49 per cent with no fee.

Henry Jordan, Nationwide’s director of mortgages, said: For those looking at their current property, we’ve also made a number of rate reductions on our green additional borrowing and later life deals.

HSBC UK has also announced mortgage rate cuts, as it reintroduced 10 per cent deposit deals to its range.

The bank has reduced rates on 17 mortgages “with immediate effect”, with savings of up to 0.20 percentage points.

HSBC’s new 10 per cent deposit deals include a two-year fixed rate deal with a £999 fee at 3.69 per cent (or 3.99% with no fee) and a five-year fixed rate with a £999 fee at 3.84 per cent, plus a two year tracker rate of 3.79% (with £999 fee).

Michelle Andrews, HSBC UK’s head of buying a home, said: Home ownership dreams may have seemed even further away for many first-time buyers of late, but with more providers returning to 90% LTV (loan-to-value) mortgages, they may be closer to becoming a reality, which is great news.

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