Mortgage Market Shifts: What’s Behind the Rate Cuts?
The mortgage market is undergoing a significant transformation, with several major lenders announcing rate cuts across their product ranges. HSBC, Paragon Bank, and Family Building Society are just a few of the lenders that have reduced their mortgage rates in recent weeks. But what’s driving this trend, and what does it mean for homeowners and prospective buyers?
Paragon Bank’s Move
Paragon Bank has reduced rates on its core range of buy-to-let mortgages, cutting rates by 15 basis points on 10 products. The bank has also launched six new 5-year fixed rate mortgages with no fee and 5% fee options. According to Louisa Sedgwick, mortgages commercial director at Paragon Bank, the move is designed to offer landlords more choice and flexibility.
Mortgage rates are falling, but what’s behind the trend?
HSBC’s Rate Cuts
HSBC has also announced reductions across its range of residential mortgage products, effective from July 5th. The changes include a new cashback incentive for first-time buyers and increased cashback for energy-efficient homes. Nicholas Mendes, mortgage technical manager at John Charcol, believes HSBC is actively working to strengthen its position in the market.
First-time buyers are set to benefit from HSBC’s new cashback incentive.
Family Building Society’s Reductions
Family Building Society has reduced rates on its interest-only and buy-to-let ranges. The move is seen as a bid to stay competitive in a rapidly changing market.
Mortgage applications are on the rise, but lenders are facing increased competition.
Conservative Support Wanes
New research suggests that the Conservatives have lost nearly half of their support from homeowners. The party’s vote share among homeowners has dropped from 38% in 2019 to just 19% today. Labour, on the other hand, has seen its support among homeowners increase from 33% to 40%. The shift is attributed to Labour’s commitment to addressing the housing crisis.
Labour’s commitment to addressing the housing crisis appears to be resonating with voters.
What’s Next?
As the mortgage market continues to evolve, lenders are under pressure to stay competitive. With rates falling and new products emerging, homeowners and prospective buyers are spoilt for choice. But what’s driving this trend, and what does it mean for the future of the mortgage market?
The mortgage market is undergoing a significant transformation.
In this article, we’ve explored the recent rate cuts from major lenders and examined the shift in voter support among homeowners. As the market continues to change, one thing is clear: lenders must adapt to stay ahead of the curve.
