Boost for buyers as mortgage rate cuts continue – h…

NatWest and Santander are the latest mortgage lenders to unveil rate cuts.

The lenders have revealed lower mortgage pricing from this morning following a trend of reductions since the Bank of England reduced the base rate at the start of the month.

NatWest’s lowest price deal is now a 3.89% five-year fix for a home purchase at 60% loan-to-value (LTV) with a £1,495 fee. That is down from 4.03% previously.

Santander hasn’t revealed its new rates yet.

The current best buy mortgage deal is at 3.83% from Barclays at 60% LTV with a £699 fee.

Moneyfacts data shows the average mortgage rate is still at 5.43% for a two-year fix and and 5.39% for five years.

Mortgage brokers hope this is a sign of more rates falling below the 4% barrier, which could boost homebuyer demand.

But with expectations that the latest inflation data will show a rise this week, large cuts could be limited.

Tony Castle, managing director at PFG Mortgages, told the Newspage agency, “The good news just keeps coming on the mortgage front. 

“This is a great start to the week with NatWest announcing further rate reductions first thing Monday. Rates falling below 4% and continuing to decrease is a huge and much needed relief to not only homeowners but also aspiring buyers. The feel good factor seems to be back. Clearly, this week’s inflation data will be closely monitored by lenders and could determine what happens to rates in the weeks ahead.”

Riz Malik, director at R3 Mortgages, added: “Not even an hour into the new week and NatWest has 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.”