The UK’s top lenders have now been cutting mortgage rates for six weeks, after they soared to record peaks in mid-July amid concerns the BoE would hike its own interest rates to levels not seen this century
The recent drop in mortgage rates shows no sign of slowing, as HSBC and NatWest announced several interest rate cuts only hours apart, while brokers forecasted the rest of the “Big Six” could soon follow suit.
HSBC revealed that it will cut its mortgage rates from Tuesday across its most popular products.
Just hours later, NatWest followed with cuts of up to 0.35 percentage points for fixed-rate loans and 0.55 percentage points for trackers.
The UK’s top lenders have now been cutting mortgage rates for six weeks, after they soared to record peaks in mid-July amid concerns the BoE would hike its own interest rates to levels not seen this century.
Lewis Shaw, owner and mortgage expert at Shaw Financial Services, expected more cuts from the other four members of the “big six” – Lloyds Banking Group, Nationwide, Santander and Barclays.
With NatWest closely following HSBC in announcing new rate cuts, there is every chance we could see the rest of the big four come to the party this week as well, Shaw said.
Nationwide reduced its rates last Thursday, while the other three had all done so within the previous two weeks. But Steven Morris, advising director at Advantage Financial Solutions ltd, said that Halifax especially would be unlikely to avoid a second cut in quick succession.
Whilst the Lloyds Banking Group only repriced last week, it is only a matter of time before their sub-divisions such as Halifax do so again to keep up with the Joneses, Morris added.
Justin Moy, MD of EHF Mortgages, expressed a similar sentiment.
I am sure others will follow the lead from HSBC and NatWest later this week, he said.
Shaw said, apart from lower BoE rate expectations, lenders were likely making cuts because they have seen less demand.
It would seem that lenders are struggling to get new business, and the rate tap is the only tool they can turn to, he added.