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Two major mortgage lenders have unveiled “very significant” mortgage rate cuts.
Barclays and Santander are the latest to slash rates, following HSBC and Halifax last week.
From Wednesday, Barclays has said it is cutting rates by up to 0.5 per cent and launching a two-year fixed mortgage at 4.17 per cent for anyone with a 60 per cent loan to value, down from 4.62 per cent, with a fee of £899.
While HSBC’s cuts were notable for bringing rates down below 4 per cent, Barclays says the two-year fixed rate mortgage will apply to anyone buying a new home and not remortgaging for an existing one.
Barclays has joined HSBC, Halifax and Santander in slashing mortgage rates
(PA)
Other cuts will appluy to 75 per cent LTV’s which will see rates cut from 4.7 per cent to 4.2 per cent and 95 per cent mortgages having rates slates from 5.8 per cent to 5.5 per cent.
Santander will also cut rates tomorrow bringing some mortgage deals down to less than 4 per cent. It will launch a five-year fixed rate loan at 3.89 per cent with a £999 fee for those remortgaging and 3.94 per cent for people buying for the first time with a 40 per cent deposit.
Other changes by Santander include a reduction in standard residential fixed rate mortgages by up to 0.82 per cent for new customers and all new build exclusive rates reduced by up to 0.56 per cent.
All large loan fixed rates will decrease by 0.25 per cent and buy-to-let and five-year fixed rates will go down up by to 0.56 per cent. Buy-to-let three-year fixed rates will be withdrawn.
Gareth Davies, director at South Coast Mortgage Services told Sky News: “This is a very significant move by Barclays. The best one we’ve seen in 2024 yet.
“To see two-year fixed deals edging this much closer to 4% is not something many would have predicted a few months ago.”
Adrian MacDiarmid, Head of Mortgage Lender Relations at Barratt Developments said they expected more lenders to follow in the coming days: “We have already seen some cuts to mortgage interests at the start of the year and would expect more lenders to follow in the coming days.
“There are a lot of lenders competing for market share and this will bring more opportunities to buy a home.
“Prospective buyers who feared that purchasing their own home was beyond them – because of barriers such as saving for a deposit – could find that mortgages are cheaper than they had expected.
“They might also be able to borrow more than expected by opting for the security of a long-term fixed rate mortgage, which could enable them to borrow up to six times their income.
“We would recommend that customers talk to a mortgage adviser who can look at all of the options available and find one that suits their circumstances.”
More to follow.
