Mortgage Market Sees Fresh Price War as Lenders Cut Rates

The UK mortgage market is witnessing a fresh price war among lenders, with several major banks cutting their rates in recent days. This move comes after the Bank of England's decision to cut interest rates from 5.25% to 5% earlier this month.

Mortgage Market Sees Fresh Price War as Lenders Cut Rates

The UK mortgage market has witnessed a fresh price war among lenders, with several major banks cutting their rates in recent days. This move comes after the Bank of England’s decision to cut interest rates from 5.25% to 5% earlier this month.

NatWest Joins the Fray

NatWest has become the latest lender to join the price war, offering a 3.89% mortgage deal with a £1,495 fee. This move follows similar offers from other major lenders, including Santander, Barclays, HSBC, and Halifax.

Many of these new deals are focused on borrowers who can offer an upfront fee, large deposits, and are premium banking customers of the respective lender. For example, Barclays is offering a 3.83% five-year fixed rate for homebuyers with a 40% deposit, which comes with a £899 product fee. However, this deal is only available to its premier banking customers.

Impact on Borrowers

The increased competitiveness among lenders is expected to bring some welcome relief to borrowers, particularly those on tracker mortgages who have seen their annual payments cut by an average of £340 as a result of the rate cut.

Additionally, the 700,000 fixed-rate mortgage deals that are due to end in the second half of this year may also benefit from the rate cuts. This could potentially lead to a rate shock for around 4,000 homeowners per day when their lower-rate deals end.

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“Not even an hour into the new week and NatWest have shot out of the blocks with even more rate cuts.

“With Santander also announcing cuts late on Friday, this should be another fantastic week of sizzling rates as the UK basks in the sun. All eyes, of course, are on Wednesday and the latest inflation data. That will be a key influencer of what happens to rates next.”

— Riz Malik, Director at R3 Mortgages

Bellway Walks Away from Crest Nicholson Takeover Bid

In other news, UK housebuilder Bellway has decided against pursuing a takeover of rival Crest Nicholson, citing the target company’s uncertain outlook and the need to focus on its own business.

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Vision Money: A Growing Cornish Business

Vision Money, a growing Cornish business, has been enjoying the benefits of working among other businesses in Newham. The company, which offers mortgage advice, has been thriving in its new location, with good parking, a clean and welcoming environment, and super-fast broadband.

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The team at Vision Money is currently offering free mortgage advice to anyone who works in Newham. To find out more about their service, visit www.visionmoney.co.uk.