Three UK banks have announced cuts to cost of fixed-rate mortgages. Barclays Bank, HSBC and TSB have revealed reductions, reversing some of price rises seen in recent weeks, in a boost for mortgage holders across the country.
Barclays Bank has announced it will reduce the price of five-year fixed-rate deals for new borrowers and remortgagors by up to 0.45 percentage points from Friday. Its five-year fixed-rate for borrowers with a 40 per cent deposit is decreasing from 4.47 per cent to 4.34 per cent.
At HSBC there will be cuts to two-, three- and five-year home loans. TSB will also make changes on Friday, and cut two- and five-year deals for house purchases by up to 0.10 per cent, the high street banking giant went on to say.
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Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “This latest round of mortgage rate reductions from some big lenders is great news for borrowers. They come on the back of a decline in swap rates, which underpin the pricing of fixed-rate mortgages, over the past week.
“These cuts should give other lenders confidence to make similar reductions, which will stimulate activity and provide a welcome boost for the market.” Nick Mendes of John Charcol brokers said: “Following last week’s announcement that the bank rate would remain unchanged, there has been a noticeable shift in the swaps market.
“Financial markets have adjusted their forecasts, signalling a potential end to the recent trend of lenders increasing their rates. As most lenders have raised their rates in recent weeks, there is now significant potential for rate reductions in the coming fortnight.” He said the downwards moves would “be expected to prompt similar actions from other lenders.”
“This move is anticipated to increase competition among lenders, potentially leading to more favourable mortgage rates for consumers.” Aaron Strutt of brokers Trinity Financial, added: “Barclays normally offers decent deals and with these changes they will back up towards the top of the best buys.”
