Lenders cut mortgage rates as experts predict more reductions in coming weeks
According to experts, many banks and building societies are expected to reduce their mortgage rates soon, following the decision of the largest lender in the UK.
Following Halifax's decision to decrease its rates by as much as 0.83% earlier this week, they have now introduced a two-year offer that comes with a 4.68% interest rate and a fee of £999.
Halifax's parent company, Lloyds Banking Group, declared that the interest rates for Club Lloyds had been reduced by an equivalent amount as well.
Leeds Building Society recently made a bold move for 2024 by cutting mortgage rates by as much as 0.49% across their entire range.
The director of products, Matt Bartle, spoke out about the limitations faced in the mortgage market in 2023, which were due to the continually rising living expenses. However, as a lending company, they aim to assist in overcoming these obstacles and assisting more individuals with becoming homeowners.
Moneyfacts reports that the average two-year fixed mortgage rate in the UK dropped to 5.92% on Wednesday, a decrease from the previous day's rate of 5.93%. Additionally, the average five-year rate also saw a decline, settling at 5.53%.
This is happening at a time when it's believed that the Bank of England will reduce interest rates in light of the decreasing inflation rate.
A number of additional lenders decreased their interest rates shortly before the holiday season, with Barclays being one of them. Barclays lowered its offers by as much as 0.43%.
Nationwide stated that they frequently evaluate their mortgage rates, whereas Virgin Money informed Sky News that they keep a close eye on the market.
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According to Trinity Financial's product director, Aaron Strutt, lending institutions will seek to begin the year with the most robust possible performance.
It is very probable that many other banks and building societies will enhance their interest rates in the next weeks and compete with each other in providing the most affordable options.
According to the director of a mortgage brokerage company called Release Freedom, Simon Bridgland, the recent action taken by Halifax might just kick off a week of intense decreases in interest rates. This is what he shared with The Times.
The rates of mortgage have slowly decreased in the past few weeks. In December, for the first time in almost half a year, the normal two-year arrangement went down below 6%.
