9 Aug 2024
A mortgage market rate war
Following the recent decision by the Bank of England’s Monetary Policy Committee to cut the base rate from 5.25% to 5% (the first reduction seen in over four years), we have seen lots of lenders reducing their rates to remain competitive.
Over the past week we have seen giants such as HSBC, Barclays, NatWest, and Nationwide take part in a “rate war” to become the champion of the lowest rate, as well as smaller lenders also competing to gain their share of new borrowers.
It seems that all lenders are fighting for that number one spot of the lowest rate. Since the first sub 4% product appeared in the market recently, other lenders have followed suit. While these deals won’t be helpful for everyone (they all have specific criteria), it does lead the way for rates for other products to reduce.
Although market commentators say we are unlikely to see substantial reductions in rates until inflation remains steady at 2% (the Bank of England’s target), we at Mortgage Required are pleased to hear about the rate wars!
“It’s great to finally see the move away from products over 5% and welcome the new sub 4% rate! Although we don’t see significant reductions in the immediate future, we are definitely seeing this as a step in the right direction for all mortgage borrowers, and it’s a positive step for getting first time buyers onto the property ladder again” commented Tracy, Director at Mortgage Required.
Mortgage Required are on hand to answer any questions and can help you to find the best option for you. Give them a call on 01628 507477 or email team@mortgagerequired.com.
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