A range of lenders have made mortgage rate cuts offering a “last window of opportunity” for buyers to lock in a low rate before the Budget.
A number of lenders announced cuts across their mortgage product range such as Barclays which will lower rates to as low as 3.73 per cent on its 60 per cent loan to value two-year fixed mortgages.
Other two-year and five-year rates from Barclays are being lowered by up to 0.13 per cent.
At the same time other lenders, Accord and Leeds Building Society, have also announced cuts, reducing their rates by up to 0.25 per cent and 0.11 per cent respectively.
Trinity Finance managing director, Omer Mehmet, said this round of cuts could represent the “last window of opportunity” before the Budget to lock in a good rate.
“If the bond markets don’t like what’s announced next month, rates could end up moving back in the wrong direction,” he said.
A similar sentiment was shared by Yellow Brick Mortgages managing director, Stephen Perkins, who said: “With the pending storm of the forthcoming budget likely to reduce demand, now is the time for lenders to fill their boots.”
Meanwhile, Whenthebanksaysno.co.uk managing director, Emma Jones, pointed out this round of cuts comes in the context of TSB bringing in similar reductions.
“Yesterday, one major high street lender, TSB, cut rates twice in a week and these latest cuts will inject further momentum into the mortgage market,” she said.
“Though the direction of travel for rate remains uncertain, with inflation still far above the target, lenders are doing their best to get the market moving.”
Charwin Mortgages director, Ranald Mitchell, also praised the rate cuts for their impact on market momentum, stating: “We’re seeing a steady trend of lenders trimming pricing as swap rates ease and competition heats up ahead of the winter slowdown.”
He added that, while the rate cuts aren’t “seismic”, they signal “intent”.
“Lenders want to keep money moving and stimulate confidence among borrowers,” he explained.
“For customers, it’s a welcoming sign that stability is returning, and the market is gradually finding its rhythm again after a jittery few months.
“With growing chatter about the Bank of England cutting rates again at their next meeting, things could be looking up for homeowners.”
Additionally, Trinity Financial product and communications director, Aaron Strutt, suggested the current flurry of reductions could spur other lenders to follow suit in the months ahead.
“It only takes one or two of the big lenders to lower their prices for other large and smaller mortgage providers to follow.
“If the base rate comes down next week or in December, we may well have noticeably better rates to start the new year with.”
tom.dunstan@ft.com
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