With economists forecasting a potential cut in the Bank of England base rate from its 16-year peak of 5.25% at the upcoming August vote, mortgage rates from lenders seem to be on a downward trajectory
First Direct has cuts its mortgage rate, trimming up to 0.17 percentage points off its products on Tuesday, following the decision by other major lenders to reduce rates last week.
The bank has made cuts across a variety of fixed repayment mortgages, including two, three, and five-year terms, aimed at both first-time buyers and those moving house. One notable reduction is on their two-year fixed-rate deal for borrowers with a 15% deposit, now coming in at 4.99%, a drop from the previous 5.16%.
Liam O’Hara, head of mortgages at First Direct, said: “We’re pleased to be reducing our rates across our range of two, three and five-year fixed mortgages, across LTVs (loans to value) from 60% to 95%. We see the highest demand for those products and today’s changes will help people making their first steps on the ladder, or those moving into their next home.”
With economists forecasting a potential cut in the Bank of England base rate from its 16-year peak of 5.25% at the upcoming August 1 vote, mortgage rates from lenders seem to be on a downward trajectory. Just last week, big names like Halifax, HSBC UK, Barclays, Santander, NatWest, and Yorkshire Building Society rejigged their mortgage offerings, with some even slashing rates multiple times in recent weeks.
Ben Merritt from Yorkshire Building Society remarked last week that favourable market conditions had enabled them to lower rates on a number of their mortgage products. Some experts have speculated that the drive to boost business and increase summer sales could be prompting lenders to adjust their rates.
Recent indications suggest that the selection of mortgage products is on the upswing. Moneyfacts, a financial information website, reported this week that it had identified 361 mortgage products available for individuals with 5% deposits at the beginning of July, marking the highest total since May 2022.
Those seeking low deposit deals are typically first-time buyers. For the research, Moneyfacts analysed data from the first available day of each month.
