Displaying items by tag: mortgage rates

Major lenders Santander and Barclays have introduced mortgage deals below 4%, signalling increased competition in the sector. These offers follow expectations that the Bank of England will continue to cut interest rates, allowing lenders to lower borrowing costs. Currently, the average two-year fixed mortgage rate is 5.48%, and the five-year average is 5.29%, but further declines are expected as lenders adjust to market trends. 800,000 fixed-rate mortgages under 3% are set to expire annually until 2027, meaning many homeowners will still face higher monthly payments. However, with the Bank of England expected to cut rates further, experts predict continued mortgage rate reductions, offering relief to borrowers. Financial experts are advising homeowners to review their options and switch to better deals where possible. The Bank of England reports that the UK economy grew slightly, by 0.1% in the last quarter of 2024. See

Despite a recent Bank of England base rate cut from 5% to 4.75%, many major lenders have increased mortgage rates and withdrawn top deals, leading to higher costs for borrowers. Around 200 deals have disappeared from the market in the past month. After the Bank’s rate reduction, average two-year and five-year fixed mortgage rates have increased to 5.44% and 5.17% respectively. Experts suggest lenders are raising rates to manage demand and maintain service standards as market conditions fluctuate. Notably, smaller lender MPowered Mortgages has reduced rates, contrasting with the broader trend. Borrowers are advised to secure current deals promptly to mitigate further costs.

HSBC has joined Barclays and NatWest in reducing mortgage rates after hints of a summer base rate cut by the Bank of England. HSBC’s new rates took effect on 26 June, with more lenders expected to follow. However, borrowers still face high costs, and average mortgage rates have been rising due to a lack of competition during the election campaign. A commentator notes that the recent rate increases are now being unwound in small steps. Fixed mortgage rates remain constant until the deal expires, after which borrowers must choose a new rate or default to a more expensive variable rate. Around 1.6 million borrowers have expiring fixed-rate deals this year. The Bank of England may cut rates at its next meeting on 1 August, influencing recent lender moves.

Homeowners face rising mortgage rates as a Bank of England interest rate cut is delayed. Several banks have raised some mortgage rates, responding to uncertain economic forecasts. Inflation remained higher than expected at 3.2% in March, influencing market predictions and delaying anticipated rate cuts. Mortgage brokers have advised securing rates swiftly to avoid financial strain. One broker highlighted the volatile nature of current rates, while another noted increasing frustration among homebuyers due to these changes. Currently, the average two-year and five-year fixed mortgage rates stand at 5.82% and 5.40% respectively.