Base rate decision sparks mortgage rate cuts from HSBC, TSB and NatWest
The Monetary Policy Committee of the Bank of England lowered the base rate to 5% last week, and major lenders have followed up by cutting rates across a range of mortgage products.
HSBC, TSB and NatWest have all slashed rates following last week’s base rate changes.
HSBC announced changes to its tracker rates would come into force from 2 August and that there would be no changes to its residential standard variable rates (SVR) and buy-to-let SVR.
If you’re a first-time buyer (BTL) looking for a two-year tracker up to 75% loan to value (LTV), there is a deal at 5.29% which is 0.29% plus the 5% base rate.
However, for 80% LTV, that rate lowers to 5.39%, taking into account the 0.39% rate added to 5%. Both deals come with a £999 booking fee.
Other lenders to change their SVR or tracker rates following the base rate cut include Santander, Virgin Money, Clydesdale Bank and Coventry Building Society.
TSB to lower a raft of rates
Elsewhere, TSB said that it has lowered residential, buy-to-let, product transfer and additional borrowing rates by up to 0.2%.
On the residential side, two, three and five-year fixed first-time buyer and home mover deals up to 80% loan to value (LTV) will be reduced by up to 0.2%. Pricing in this range starts from 4.49%.
Two-year fixed remortgage deals up to 75% LTV are being cut by 0.05% and rates begin from 4.69%.
Within its buy-to-let range, two and five-year fixed house purchase and remortgage rates have fallen by up to 0.3% with two-year fixed rates starting from 4.59% and 4.39% for five-year fixed rates.
Two and five-year fixed buy-to-let product transfer rates up to 75% LTV will be cut by 0.2% and start from 4.69% and 4.34% respectively.
Additional borrowing buy-to-let two and five-year fixed rates have decreased by up to 0.2%, with two-year fixed rates priced from 4.99% and five-year fixed rates starting from 4.49%.
TSB lowered its buy-to-let stress rate by up to 1% and lowered the stress rate used for background buy-to-let mortgages on residential applications from 6% to 5.5%.
NatWest launches Best Buy deal
Meanwhile, NatWest has launched a new best-buy mortgage with a five-year fixed-rate mortgage priced at 3.97% and coming with a £1495 fee to pay.
However, despite making the cuts to ease pressure on mortgage holders, the nature of the deal has led to criticism by one finance expert. This is because the deal is exclusively for customers of the bank and not mortgage brokers, who could help facilitate the best rate for mortgage holders.
Nicholas Mendes from mortgage brokers John Charcol, said: “It’s disappointing to see a lender offer a product exclusively for direct clients, especially given the significant volume of business that flows through intermediaries.
“This approach seems short-sighted and overlooks the value and trust intermediaries bring to the lending process. It’s crucial to ensure fair and equal opportunities for all clients, regardless of their approach.”
