The home side – who had started the afternoon in the bottom four a point behind Dagenham – got off to a fast start when defender Jack Cook headed in from a corner after just four minutes Kallum Cesay then tapped in a second before a long-range effort from midfielder Mustapha Carayol had Stones in control ahead of half-time Halifax – already secure of a place in the top seven – claimed a consolation just before the hour mark through a long-range effort by Luca Thomas but Wealdstone saw out the closing stages to edge above Dagenham The corresponding results carried an additional air of significance given Solihull boss Matt Taylor left Wealdstone in January to move to Damson Park To load Comments you need to enable JavaScript in your browser The BBC is not responsible for any changes that may be made Thomas Match OfficialsReferee: Richard EleyAssistant Referee 1: Justin AmeyAssistant Referee 2: David HuttonFourth Official: Adam MerchantMatch StatsKey Copyright © 2025 BBC. The BBC is not responsible for the content of external sites. Read about our approach to external linking. Three first-half Wealdstone goals were enough to beat Halifax and secure their National League status FC Halifax Town named a host of changes ahead of the final game of the regular campaign away to Wealdstone Dubem Eze and Sean Tarima both made their first start for the Shaymen a corner swung in by Max Kretzschmar met the head of Jack Cook who nodded it home for a second goal of the season The away side nearly found an instant equaliser through Harvey Sutcliffe whose shot come cross struck the top of the bar Halifax haven’t found themself two down often this season Mustapha Carayol burnt Sutcliffe for pace before delivering into the box where Kallum Cesay was waiting to tap in for his sixth of the season Things were set to get worse still for Halifax; Carayol once again worked the ball well on the left wing before cutting inside and unleashing an early strike into the bottom left corner This was his first for the club after signing as a free agent earlier this year For just the second time in the league this season Sutcliffe had a difficult first half an hour and things got worse for him as he picked up a yellow after chopping down Alex Reid on the halfway line The Stones would have had a fourth before half time if it wasn’t for Adam Senior’s goalline clearance following Kretzschmar’s shot Following a lacklustre first-half display in which Halifax struggled to gain a foothold in the game Chris Millington opted for a dramatic response at the interval making all five substitutions in an effort to revitalise the side for the second period Ryan Galvin and Angelo Cappello all entered the pitch Luca Thomas scored a goal of the season contender to reduce the deficit to two Wealdstone keeper Dante Baptiste tried his best to get back to reach it This is Thomas’s third for the club since joining in January A loose ball from Joshua Grant fell to Tom Pugh on the edge of the home side’s box; he rolled his man but ultimately his strike did not contain enough power to trouble Baptiste Half-time substitute Florent Hoti had a big impact on the improved second-half performance and he was inches away from picking up an assist; his whipped free kick was contested for well by Senior but his header was kept out brilliantly by Baptiste The rest of the game fell into somewhat of a lull as Wealdstone knew all they had to do was hold on to secure their National League status for next season Halifax did look more comfortable with the usual starters on the pitch but it was still not a performance that Chris Millington and the squad will want to take into the playoff campaign 17 Dominic Hutchinson (29 Harrison Sohna 79) Read more posts by Finley Carter Copyright 2017 FC Halifax Town | All Rights Reserved | Privacy Policy | Sitemap | Accessibility Web Design & Development by Identify Following discussions with the EFL and the National League it is agreed that Halifax Panthers and Huddersfield Giants can play fixtures at the Shay Stadium along with FC Halifax Town from the 2025-2026 season Following today’s game at Wealdstone we’ll now play Oldham Athletic at Boundary Park in our Eliminator play off fixture on Wednesday 14 May – Time TBC We will confirm ticketing arrangements once we have more information from Oldham as they are the home club As usual this will be through our normal social media channels and Club website Read more posts by Kelly Gilchrist NEWS & UPDATESTEAMS FIRST TEAMMANAGEMENT TEAMOPPOSITIONFIXTURES SearchPRE-MATCH INFO | FC HALIFAX TOWN (H)Wealdstone FC3 days ago5 min readA bumper Bank Holiday crowd is expected at Grosvenor Vale on Monday as Wealdstone host FC Halifax Town knowing only a win and favourable results elsewhere will preserve the clubs National League status Wealdstone supporters should note that the end of season awards will be take place in the club house post match with proceedings set to get underway around 5.30pm Turnstiles will open at 2.00pm and we kindly ask all supporters – home and away – to arrive early to ensure you are in the ground in plenty of time for the 3.00pm kick off We ask all supporters to obtain tickets in advance and to arrive in plenty of time for the kick off to avoid excess queuing at the turnstile The match will be segregated with Halifax supporters allocated blocks one and two of the MODU stand for seating and the Hawthorne Terrace for standing Halifax fans must enter the stadium through the away turnstiles which are clearly signposted at the entrance to Grosvenor Vale Halifax supporters need to purchase tickets in advance either via the Wealdstone website (for a discount) or at the ticket box at the entrance to Grosvenor Vale which will be open from 1.30pm No tickets are available to be purchased at the away turnstile Wealdstone supporters should enter via the turnstiles at the entrance to Grosvenor Vale Tickets can be purchased online in advance for a discount but for those without a ticket on matchday they will be available to purchase at home turnstiles 1 & 2 where both cash and credit cards are accepted Wealdstone supporters will also be able to sit in Blocks 3 & 4 of the MODU stand with standing also available in the Shots Stand access to these areas for Wealdstone supporters are via the Ruislip Windows Stand side of the ground Please note - for this fixture there is NO TRANSFER TO THE RUISLIP WINDOWS AND DOORS STAND if you have a Standing Ticket Seating tickets in this stand will be sold out and ticket holders MUST SIT IN THEIR ALLOCATED SEAT In what is big day in Wealdstone FCs season all fans are reminded to show their support in a positive way to ensure the match is safe and enjoyable for all.Nobody should be at risk of harm at a football match Tough measures and sanctions are in place across all English football leagues to tackle dangerous and illegal behaviours within football grounds The very small number of individuals who engage in these acts are reminded that identification could lead to automatic club bans and police action As well as our commitment to HER GAME TOO Wealdstone FC is also committed to promoting the Love Football police forces and all relevant authorities to keep matchday environments safe Due to limited facilities on matchdays there are no ticket resales We advise ticketholders to either print out the ticket issued or alternatively they can be scanned via a mobile phone When using a mobile phone we advise turning the brightness up to 100% Each ticket has a unique barcode that cannot be duplicated if more than one copy of the ticket has been used on matchday you will be denied access to the stadium Before you arrive at the turnstile have your tickets ready for scanning there is no need to take items from your pockets Follow the instructions when directed by one of the team Failure to produce your match ticket will result in access being denied into the stadium All supporters attending Grosvenor Vale will be subjected to a screening process prior to entering the stadium that includes a physical and/or visual search If avoidable do not bring a bag larger than 20cm x 15cm x 5cm (8" x 6" x 2") this equates to a small handbag If a concessionary ticket has been purchased Holders of such tickets should ensure that they have appropriate ID In addition, no Carers tickets will be issued on the day so any disabled supporter eligible for a second free Carers ticket must contact the ticket office in advance via email: tickets@wealdstonefc.com The Vale Club within The Grosvenor Vale Stadium Complex will be open to both Wealdstone and Halifax supporters pre match all of whom are invited to sample some of the fine beverages on sale all at competitive prices There are no restrictions on entry to The Valebut children must be accompanied by an adult at all times At half time and Post match the Vale will be restricted to Wealdstone supporters only A full food menu provided by our award-winning match day caterers DDs is available to all supporters and a wide range of options are offered The Wealdstone matchday programme will be available to purchase for £3 at the entrance to Grosvenor Vale and at various points outside the stadium including the club shop Programmes are not available once you have entered the stadium through the turnstiles so if you do wish to buy a programme do so outside Both The WEALDSTONE KELME Club Shop and the Supporters Club Shop will be fully stocked and open pre match Younger supporters are reminded that the age limit for unaccompanied minors is 14 years old and that no child under the age of 14 will be granted access to the stadium without a responsible adult who is over the age of 18 This policy will be rigorously enforced and if you are impacted by this then contact the ticket office and a full refund will be offered If you are refused entry as a result of this policy a refund will not be offered and you will be escorted off site if you are impacted by this then contact the ticket office and a full refund will be offered The clubs full matchday safety policy is available here https://www.wealdstone-fc.com/match-day-safeguarding-policy we are delighted to be able to open the Stadium Car Park for the game so amble parking is available for a fee of £5 The stadium car park will open from 12.30pm but access to for all vehicles will cease at 2.30m with the entire area becoming pedestrianised to allow fans on foot to arrive safely to the stadium For fans who chose to drive and park in local residential side streets do not block driveways and keep off the curb Always ensure there is space for emergency vehicles if they need to get access to any side streets Fans planning to drive are reminded that Grosvenor Vale sits within the expanded ULEZ zone We encourage all fans to travel to the game by public transport Grosvenor Vale has great access to local railway and underground stations: Ruislip and Ruislip Manor are both on the Metropolitan Line and Piccadilly Line; whilst West Ruislip and Ruislip Gardens are on the Central Line West Ruislip is also on the Chiltern Main line out of London Marylebone Ruislip station & Ruislip Manor are just over 5 minute walk away from Grosvenor Vale while Ruislip Gardens is around a 10 minute walk If you are travelling to Grosvenor Vale by taxi you can use the postcode HA4 6JQ And last but not least We sincerely hope that both sets of fans enjoy the game Halifax Panthers celebrated the club’s special place in the history of Wheelchair Rugby League along with the 2024 Golden Boot winner Rob Hawkins in front of their fans at The Shay for Sunday’s Betfred Championship fixture against London Broncos as the outstanding Wheelchair Rugby League player in the world last year by Panthers Chief Executive Damian Clayton MBE RAF himself an inductee on the RFL’s Roll of Honour Player-coach Wayne Boardman and the rest of the Panthers squad joined Hawkins and Clayton on the pitch as Halifax fans were urged to support their forthcoming campaigns in both the Betfred Wheelchair Challenge Cup and Super League The Panthers have received a bye through the quarter finals of the Cup so they will kick off their 2025 campaign with a Super League fixture against Hull FC at Sedbergh Sports Centre on Saturday week Halifax were the inaugural winners of the Wheelchair Rugby League Challenge Cup in 2015 and preserved their grip on the competition for four seasons until 2018 – but they have not made it to the Final since They have fared better in the Betfred Wheelchair Super League beating Leeds Rhinos in the inaugural Grand Final in 2019 and again in 2022 before losing to the Rhinos in Hull last year – and their 2025 squad has received a huge boost with the return of Jack Brown the first winner of the Golden Boot in 2019 Halifax was the cradle of Wheelchair Rugby League in England thanks to Malcolm Kielty MBE whose contribution alongside France’s Robert Fassolette is recognised when the countries compete for the Fassolette-Kielty Trophy – currently held by France The 2025 Betfred Wheelchair Challenge Cup continues this weekend with the first Quarter Final as Hull FC host Leeds Rhinos after Sheffield Eagles secured their place in the last eight with an emphatic win against Warrington Wolves last weekend the other newcomers to the Super League in 2025 when London Roosters travel to Wigan Warriors Enquires: enquiries@rfl.co.uk  |  0330 111 1113 (Mon-Fri 10-4pm)Ticketing: ticketing@RLcommercial.co.uk  |  0844 856 1113 (Calls will cost 7p per minute plus your phone company’s access charge) GameDay Support: gamedaysupport@rfl.co.uk 168 8110 49Copyright © 2023 - Rugby Football League - All rights reserved The Forbes Advisor editorial team is independent and objective and to continue our ability to provide this content for free to our readers we receive payment from the companies that advertise on the Forbes Advisor site we provide paid placements to advertisers to present their offers The payments we receive for those placements affects how and where advertisers’ offers appear on the site This site does not include all companies or products available within the market we also include links to advertisers’ offers in some of our articles These “affiliate links” may generate income for our site when you click on them The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor While we work hard to provide accurate and up to date information at the time of publication that we think you will find relevant Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto nor to the accuracy or applicability thereof You should always check with the product provider to ensure that information provided is the most up to date Mortgage lenders are continuing to reduce the cost of fixed-rate borrowing as the price war intensifies in the run-up to Bank of England’s next interest rate decision on 8 May Halifax has cut selected fixed rates for residential purchase and remortgage including a 0.31 percentage rate cut on its two-year deal for remortgage which takes the rate down to a market-leading 3.79% is only available on mortgages worth more than £250,000 and borrowers must have at least 40% equity in their home (60% loan to value) Among Halifax’s other deals is a five-year fixed rate for remortgage at 3.98% with a £999 fee (also 60% LTV) but with no minimum loan size This represents a cut of 0.3 percentage points on the previous rate HSBC has cut selected fixed rates for the second time in a week (see stories below) The latest round of cuts includes a reduction to its higher loan to value borrowing with the lender now offering a fee-free two-year fixed rate for home purchase at 95% LTV priced at 4.99% Costs of its two- and five-year fixed rates for remortgage have also fallen to start from 3.89% with a £999 fee at 60% LTV HSBS Premier banking customers can get the same deal at a rate of 3.84% Santander has also reduced the cost of fixed rates across its range of purchase and remortgage range It has a two-year fixed rate for homemovers at 3.89% with a £999 fee (60% LTV) and an equivalent five-year deal at 3.92% It is also offering competitive three-year fixed rates for purchase including a deal at 85% LTV priced at 4.49% or at 4.75% for buyers with a 10% deposit (90% LTV) two-year fixed rates now start from 4.09% with a £999 fee (60% LTV) or from 4.12% for an equivalent five-year fix NatWest has cut selected fixed rates across its residential range to offer competitive two- and five-year fixed rates for home purchase at 3.88% Borrowers need at least a 40% cash deposit (60% LTV) to bag this rate The bank has also relaxed its lending criteria to allow customers to borrow more which is a joint borrower sole proprietor deal (JBSP) which can help younger borrowers onto the property ladder with the help of family members Barclays has reduced selected fixed rates and has broadened its range of deals at sub-4% It had been among the first lenders to drop fixed rates below 4% but initially this had been for its Premier banking customers only The bank is now offering a two-year fixed rate to all new customers looking to purchase a property at 3.92% with an £899 fee (60% LTV) The equivalent five-year deal for purchase is now at 3.93% with the same fee Barclays two-year and five-year fixed rates for remortgage now start from 3.96% with a £999 fee (60% LTV) April Mortgages has increased its lending income multiple to seven times income for borrowers with a minimum income (single person or household income) of £50,000 taking a 10 or 15-year fixed rate deal and there are no early repayment penalties The standard maximum income multiple offered by most lenders is 4.5 April has relatively high rates compared to market-leading deals Its 10-year fixed rate deals start at 5.55% chief executive at mortgage broker SPF Private Clients said: “NatWest’s launch of a market-leading five-year fix at 3.88% along with a joint borrower sole proprietor mortgage for the first time and other enhanced affordability measures for all customers is part of a growing trend among lenders keen to do more business.  along with the Financial Conduct Authority clarifying its stance on affordability stress rates.” Will Rhind at mortgage broker Habito said: “Looking ahead much will depend on what the Bank of England decides on 8 May It appears lenders are pricing in a Bank Rate cut so it’s more likely that we’ll see fixed rates settle around current levels for now particularly while the broader economic outlook remains uncertain.  “An interest rate cut could provide further room for lenders to trim rates but I’d be cautious about expecting a sharp drop but they’re also mindful of risk and market volatility I’d advise people not to hold out for significantly lower rates in the short term especially with affordability and lender criteria still relatively tight.” the specialist lender for first-time buyers have reduced selected residential fixed rate deals for new customers TSB has cut rates for purchase and remortgage borrowers as well as deals for existing customers looking to fix after coming to the end of their current deals It is offering a two-year fix for home purchase at 4.04% with a £995 fee for buyers with a 25% cash deposit (75% LTV) It has a five-year fixed rate for remortgage at 4.39% with a £995 fee (also at 75% LTV) MPowered is offering a three-year fixed rate deal for remortgage at 3.98% with a £999 fee (60% LTV) and there is an added perk on both deals of £250 cashback on completion Gen H has cut selected five-year fixed rates with deals for purchase now starting at 5.13% with a £1,499 fee (60% LTV) This rate is available for borrowers who use Gen H’s legal service as part of its homebuying bundle deal.Bucking the trend of rate cuts Clydesdale Bank has increased two and five-year buy-to-let fixed rates by up to 0.09 percentage points at 60% and 75% LTV Better.co.uk is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it *Your home may be repossessed if you do not keep up repayments on your mortgage Lenders across the board have been making cuts to fixed rate mortgage costs this week with Nationwide producing a new market-leading sub-4% deal Nationwide has cut rates for new and existing customers across its first-time buyer and homemover range by up to 0.25 percentage points The lender is offering two-and five-year fixed rate deals both priced at 3.89% with a £1,499 fee and 40% deposit The five-year deal is the best of its kind in the market both mortgages are limited to a loan size of £300,00 The current market leader for a deal with no minimum loan size is from Yorkshire BS which is offering a two-year fixed rate for purchase priced at 3.91% with a £995 fee (60% LTV) – or 3.98% for the equivalent remortgage deal Nationwide has also cut selected fixed rates for new remortgage customers and existing customers looking to switch to a new deal (product transfer rates) by up to 0.29 percentage points The lender offers both a two-year or a five-year remortgage fixed rate at 3.94% with a £1,499 fee (minimum loan of £300,000) or equivalent deals at 3.99% with a £999 fee for mortgages of less than £300,000 These deals all require at least 40% equity in the property Product transfer fixed rates also start from 3.94% (60% LTV) with a £999 fee Halifax also cut selected deals for home purchase and remortgage this week by up to 0.21 percentage points It is now offering two-year fixed rates priced from 3.94% with a £999 fee for a 40% deposit Among its other deals is a five-year fixed rate for purchase at 4.10% with a £999 fee (60% LTV) and a two-year deal for purchasers priced at 4.34% with a £999 fee for a 20% deposit.  has also cut remortgage fixed rates across a broad range of deals by up to 0.1 percentage points Two-year remortgage fixed rates now start from 4.10% (60% LTV) with a £1,999 fee or from 4.18% for the equivalent five-year deal The rate cuts follow similar moves by Santander NatWest and Coventry and Yorkshire building societies which are offering deals priced at under 4%.  Here’s a summary of this week’s mortgage price movements by lender HSBC has cut its fixed rates across residential and buy-to-let purchase and remortgage deals for new and existing customers While the new rates and deals won’t be unveiled until Monday the lender has said it will be offering deals at sub 4% in line with the sub-4% rates it already offers its Premier banking customers it offers a five-year fixed rate at 3.99% with a £999 fee for Premier banking customers looking to remortgage MPowered Mortgages has cut selected fixed rates by up to 0.12 percentage points Its lowest two-year fixed rate for purchase is now priced at 3.99%. Over three years the rate is 3.92%, while its five-year fix is at 4.09% All deals are for home buyers with at least 40% deposit (60% LTV) and have a £999 product fee Fee-free equivalent rates are available starting at 4.24% for a two-year fix and 4.23% for a five-year deal TSB has cut selected fixed rates for existing residential and buy-to-let borrowers by up to 0.25 percentage points It follows reductions made by the lender earlier this month to its fixed rate ranges for new customers Among the new deals is a two-year residential product transfer rate at 3.99% with a £1,495 fee has lowered the cost of selected two-year fixed rates including cutting its 90% loan to value deal by 0.3 percentage points to 5.94% with a £1,499 fee This deal is available to first-time buyers who take Gen H’s homebuyer bundle are increasingly becoming more competitive than the equivalent five-year fixed rates marking a reversal of the trend seen over the past two and half years Data from Rightmove shows that the average two-year fixed mortgage rate at 60% LTV is now priced at 4.18% which makes it cheaper than the average five-year fixed equivalent priced at an average 4.19% director at mortgage broker L&C Mortgages said: “There’s been another flurry of new rates coming through and that has resulted in a clutch of deals at under 4%.  “Markets have shifted their expectations and look to be expecting that further interest rate cuts could come sooner than previously expected “Shorter-term deals are also dropping below the rates on five-year deals Traditionally short-term rates would be expected to be lower but in recent years that has been flipped on its head and five-year rates have for a while been the cheapest.  “With that trend now on the turn borrowers will have to weigh up what works best for them a shorter term rate or security over the longer term to protect against any volatility along the way.” The next Bank of England Bank Rate decision is on 8 May Santander and HSBC are among major lenders cutting fixed mortgage rates as instability in global markets prompts lenders to anticipate further reductions to the Bank of England Bank Rate, writes Jo Thornhill Santander has announced reductions across its residential purchase and remortgage range including new two- and three-year fixed rates at under 4% Selected buy-to-let (BTL) deals have also been cut by up to 0.16 percentage points The bank’s two- and three-year fixed rates for residential home purchase for buyers with at least a 40% cash deposit (60% loan to value) have fallen to 3.97% and 3.99% respectively Both Barclays and Coventry building society cut rates last week to offer sub-4% fixed rates for home purchase in an intensification of the current mortgage price war HSBC has also lowered the cost of its residential and BTL fixed rates for new and existing borrowers The new rates and deals will be unveiled and available Nick Mendes at broker John Charcol said: “There is definitely a shift in sentiment Where we had initially expected two interest rate cuts this year the market is now pricing-in up to four by the end of 2025 which would take the benchmark Bank Rate to 3.5% [from its current 4.5% assuming a 0.25 percentage point cut each time].” “Some lenders have moved quickly to offer sub-4% deals particularly lenders that have recently locked in business at higher rates with borrowers trying to switch mid-process to access better deals which could create operational and financial challenges for lenders.” Mortgage choice for borrowers with a low cash deposit or equity in their home is at its highest in 17 years Its data shows there are 442 loan deals for borrowers with a 5% deposit this month compared to 335 deals a year ago (it was 575 in March 2008 For borrowers with a 10% deposit or equity compared to 774 in April 2024 (and compared to 957 in March 2008 has reduced selected rates for residential and BTL borrowers have been lowered by up to 0.26 percentage points Product transfer deals for existing customers have been cut by up to 0.18 percentage points The lender is offering two-year fixed rates for residential purchase from 4.37% (60% LTV) with a £999 fee the specialist lender owned by Nationwide building society has cut selected two- and five-year fixed rate deals for buy-to-let borrowers by up to 0.25 percentage points It is offering a two-year deal for BTL purchase or remortgage at 3.14% with a 3% fee (65% LTV) The lender has also launched a range of £750 cashback deals for limited company landlords looking to remortgage A five-year rate at 75% LTV starts from 4.99% with a 3% fee has cut selected fixed rates for residential borrowing by up to 0.15 percentage points and across its BTL range by up to 0.2 percentage points is a two-year fixed rate for residential purchase at 4.33% with an £895 fee for buyers with a 20% cash deposit (80% LTV) the specialist lender focused on the first-time buyer market has cut fixed rates across its range by up to 0.25 percentage points It is offering a two-year fixed rate at 5.99% with a £999 fee (85% LTV) for borrowers who take its ‘homebuyer bundle’ where they use Gen H’s conveyancing and legal service Principality building society has lowered selected residential fixed rates by up to 0.22 percentage points but it has increased the cost of deals for shared ownership and new build mortgages by up to 0.66 percentage points The mutual lender’s five-year fixed rates have seen the biggest reductions It is now offering a fee-free five-year fixed rate deal for residential remortgage at 4.35% (65% LTV) West Brom building society has cut selected two-year residential fixed rates by up to 0.31 percentage points for borrowers with at least 20% equity in their home (80% LTV) drop by 0.3 percentage points to 4.39% while the equivalent purchase deal has fallen by 0.31 percentage points to 4.29% Newcastle building society has reduced selected residential fixed rates for borrowers requiring a large mortgage (£1.5 million or more) by up to 0.26 percentage points It has a two-year fixed rate in this sector at 4.9% with a £1,999 fee (65% LTV) Melton building society has cut a range of its residential fixed rates by up to 0.29 percentage points including many of its high loan-to-value rates Among the new rates the mutual lender has a 5.25% five-year fixed rate deal for residential buyers with a 5% cash deposit (95% LTV) It has a £199 application fee but no other product fees across its residential range by up to 0.2 percentage points both at 4.99% with a product fee (the fee is variable based on the size of the loan and the specific deal) the specialist lender for landlords with investment properties has cut selected fixed-rate deals by up to a full percentage point (1%) It has deals starting from 3.59% for a two-year fixed rate with a 5% fee (65% LTV).  the biggest mortgage lender with brands including Halifax has relaxed its lending policy to enable customers to borrow more The bank has said the change could see its typical customers borrow up to 13% more (£38,000 in real terms) Santander similarly relaxed its ‘stress test’ for borrowers last month enabling customers to borrow in the region of £10,000 to £35,000 more on a mortgage It comes after the regulator the Financial Conduct Authority (FCA) said last month that since interest rates had fallen the stress tests (or higher interest rates) used by many mortgage providers when making lending decisions were too restrictive and could be preventing access to ‘otherwise affordable mortgages’.  The FCA will next month launch a consultation looking at ways to simplify the remortgage process are reducing the cost of fixed-rate mortgages resulting in the return of deals priced below 4% The fixed-rate reductions are in response to market predictions that the Bank of England will cut the benchmark Bank Rate when its rate-setting Monetary Policy Committee (MPC) next meets on 8 May President Trump’s recent trade tariff announcements have triggered stock market turmoil around the world although some stability has returned – helped by a 90-day pause by the US on the introduction of many tariffs – so-called ‘swap’ rates This has resulted in lenders producing cheaper fixed-rate mortgages for both purchase and remortgage Barclays has cut selected fixed rates by up to 0.38 percentage points It includes reductions to its standard two and five-year fixed rates for purchase which have both fallen (from 4.11% and 4.12% respectively) to 3.99% Both deals charge a £899 fee and require a minimum 40% cash deposit Coventry building society has lowered a range of deals for new and existing customers with residential rates cut by up to 0.25 percentage points and buy-to-let deals cut by up to 0.2 percentage points The mutual lender is offering a two-year deal for residential purchase at 3.99% with a £999 fee for borrowers with at least a 35% cash deposit TSB has lowered the cost of selected two-year fixed-rate deals for new and existing customers (product transfer deals) by up to 0.25 percentage points It is offering a two-year fixed rate for remortgage at 4.19% with a £1,495 fee (60% LTV) It has a two-year fixed rate first-time buyer deal at 4.34% with a £995 fee at 75% LTV MPowered Mortgages has cut selected fixed rates by up to 0.21 percentage points Two-year fixed rates now start from 4.05% with a £999 fee (60% LTV) while equivalent three- and five-year rates start from 4.04% and 4.14% respectively Gen H, the specialist lender that offers deposit boost and other innovative mortgage loans to help first-time buyers has reduced selected deals (up to 80% loan to value) by up to 0.2 percentage points including deals under its New Build Boost scheme LendInvest has reduced its five- and seven-year BTL fixed rate deals by up to 0.2 percentage points It is offering a five-year standard BTL deal at 4.69% with a 7% fee at 75% LTV has cut fixed rates by up to 0.1 percentage points It is offering a two-year fixed rate for BTL remortgage at 5.03% with a 2.5% fee at 75% LTV has increased selected two- and five-year fixed rates this week by up to 0.15 percentage points while reducing a handful of broker-exclusive rates and product transfer deals for existing customers Nick Mendes at broker John Charcol said: “Since President Trump’s so-called ‘liberation day’ announcement [on 2 April] there has been a sharp change in market sentiment.  markets were expecting two further Bank of England rate cuts this year to 3.5% by the end of the year –  a significant shift driven by fears that a prolonged trade war could slow global growth.” Growing numbers of lenders are reviewing their fixed rate deals as markets react to the trade tariffs announced by US President Donald Trump Gilt prices and swap rates have edged down prompting a number of banks and building societies to cut fixed mortgage rates as well as mutual lenders Coventry and Skipton (building societies) Brokers expect more fixed rate cuts next week as the market adjusts have taken the opportunity to increase selected fixed rates most likely to control business volumes and service levels (full round-up of mortgage rate changes below) Mortgage market expert Ray Boulger at broker John Charcol believes the trade tariff turmoil could lead to lower mortgage rates He said: “While a trade tariff war can only be bad for the world economy there are some trade-offs for the UK Gilt yields have fallen and are nearly 25 basis points lower following the tariff announcement.   retaliation to the tariffs from the UK and so upward inflationary effects should be very limited more competition from suppliers less able to export to the US lower oil and freight costs plus a stronger sterling against the dollar should all help to lower inflation here “A better outlook for inflation and a more challenging economic situation means that a cut in Bank Rate on 8th May now looks almost certain and equally important the outlook is for an acceleration of future cuts Many lenders are likely to cut mortgage rates next week and we can look forward more optimistically now to further falls over the course of the year.” Santander has cut selected two and five-year fixed rates for new and existing customers by up to 0.1 percentage points The bank’s two-year fixed rate purchase deals at 85% LTV up to 95% LTV will be reduced by up to 0.08% while some two-year fixed remortgage rates at 60% LTV up to 75% LTV will be lowered by up to 0.07 percentage points Five-year fixed rate remortgage deals at 75% LTV are cut by up to 0.1% TSB has lowered the cost of selected purchase two three and five-year fixed rates by up to 0.15 percentage points The bank is offering a fee-free two-year purchase deal at 4.89% and a three-year purchase deal at 5.04% with a £495 fee (85% LTV) Coventry building society has reduced all two and three-year fixed rate residential deals for new and existing customers It has a fee-free two-year fixed rate for purchase at 5.12% (90% LTV) The lender has also cut rates on selected five-year buy-to-let fixed rates for remortgage Skipton building society has also cut the cost of fixed rate deals across its range by up to 0.32 percentage points Its two-year fixed rate for remortgage borrowers with 10% equity in their home (90% LTV) is cut from 5.35% to 5.06% with a £495 fee The mutual is also offering a fee-free two-year purchase fixed rate at 5.68% (95% LTV) with £1,000 paid in cashback on completion which offers deals exclusively through brokers has cut the cost of some fixed- rate remortgage deals by up to 0.16 percentage points while other deals have increased by up to 0.14 percentage points The same changes also apply to its product transfer range for existing customers The lender is now offering a two-year fixed rate deal for remortgage priced at 4.36% (60% LTV) with a £999 fee and a five-year equivalent deal at 4.28%. Halifax also offers a range of 18-month fixed rate deals for remortgage NatWest has increased selected deals for new borrowers by up to 0.14 percentage points across residential and buy-to-let deals Its five-year fixed rate for residential purchase (75% LTV) is now at 4.58% Barclays has increased selected purchase and remortgage deals by up to 0.12 percentage points Affected deals include its Barclays Premier five-year fixed rate for homebuyers which has been hiked from a competitive 3.99% up to 4.11% which is available exclusively to Premier banking customers with a 40% cash deposit Barclays is now offering a two-year fixed rate for purchase at 4.8% with an £899 (90% LTV) and a five-year deal at 4.12% with the same fee at 60% LTV the bank is offering a five-year fixed rate at 4.97% with a £999 fee available to borrowers with at least 15% equity in their home (85% LTV) has increased selected five-year fixed rates for purchase and remortgage by up to 0.14 percentage points Selected five-year product transfer fixed rates have been increased by up to 0.1 percentage points The lender is offering a five-year fix for remortgage at 4.35% with a £995 fee (75% LTV) or a fee-free option at 4.47% These deals have both increased by 0.08 percentage points Buy-to-let borrowing surged at the end of 2024 according to the latest data from banking trade body UK Finance Its figures show 52,648 BTL loans (a total of £9.6 billion) were advanced between October and the end of December (Q4) last year – a rise of 39.2% on the same period in 2023.  Average BTL investment yield (rental income relative to the property’s value) has risen to 7% (Q4 2024) compared to 6.7% for Q4 2023 Lenders are repositioning their fixed rate offerings as the Bank of England kept interest rates on hold at 4.5% last week (20 March) Santander cut selected purchase fixed rates by up to 0.15 percentage points effective from tomorrow (28 March) But some five-year purchase and remortgage fixed rates for borrowers with between a 10% and 40% deposit will be increased by up to 0.09 percentage points Selected buy-to-let (BTL) fixed rates for new and existing borrowers will also be reduced by up to 0.1 percentage point The bank’s new rates and deals for residential and BTL borrowing will be unveiled tomorrow NatWest has made reductions of up to 0.1 percentage points across its purchase and remortgage deals for new customers but selected five-year fixed rate deals have increased by up to 0.03 percentage points Among the deals which have seen a cut are a fee-free two-year fixed rate for buyers with a 5% cash deposit (95% LTV) at 5.13% and a five-year purchase rate for those with a 15% deposit (85% LTV) at 4.42% with a £995 fee plus £250 cashback paid on completion HSBC has launched a range of buy-to-let deals for its Premier banking customers The two- and five-year fixed rate deals are available to those buying or remortgaging at between 60% loan to value (LTV) and 80% LTV.  The lender is offering a two-year Premier fixed rate for BTL purchase at 4.29% with a £1,999 fee (60% LTV) or an equivalent five-year deal at 4.24%.  To be eligible for an HSBC Premier account you must have either an annual income of £100,000 or more (paid into the account) or £100,000 or more in savings or investments with the bank HSBC has also reduced the amount of cashback paid on completion of a range of its residential mortgage deals TSB has cut selected two and five-year fixed rate BTL deals for new and existing customers by up to 0.2 percentage points (effective from tomorrow Virgin Money, the brand owned by Nationwide building society is making cuts of up to 0.15 percentage points across selected purchase and remortgage deals as well as reducing the cost on a number of BTL deals in its range Product transfer deals for existing residential borrowers have also been cut by up to 0.12 percentage points The lender’s two-year fixed rates for residential purchase now start at 4.37% while five-year deals start at 4.24% (65% LTV) has tweaked down the cost of borrowing on selected two-year residential purchase fixed rates Its two- and five-year fixed rates for professionals (such as doctors and dentists) have been cut by up to 0.37 percentage points (65% LTV up to 80% LTV) while deals at 90% LTV for newly qualified professionals have been cut by 0.03 percentage points Principality building society has cut selected fixed rates by up to 0.35 percentage points while increasing other deals by up to 0.12 percentage points The mutual lender is offering a two-year fixed rate for remortgage at 4.25% with a £1,499 fee (65% LTV) Family building society has made a range of changes to its mortgage deals including reducing some fixed rates by up to 0.1 percentage points while increasing the cost of others by up to 0.15 percentage points It has also cut selected two-year BTL deals by up to 0.1 percentage points It is offering a two-year fixed rate for purchase at 5.14% with a £999 fee The mutual lender has also increased the amount it will lend on a joint borrower sole proprietor basis up to £1 million Marsden building society has launched a five-year fixed rate deal for home buyers and remortgage customers who have a 5% cash deposit or equity in their home (95% LTV) at 4.99% has cut selected BTL deals by up to 1.76 percentage points Its two-year fixed rates for standard buy-to-let now start from 5.69% and equivalent five-year deals start from 4.99%.  For holiday let purchase two-year rates start from 5.89% and five-year deals now start from 5.94% These deals all have a 5% fee and require a 35% deposit or equity The nil rate band for stamp duty is set to fall from £425,000 to £300,000 for first-time buyers which start from 5.19% (for buyers with a 10% deposit) Cashback of £2,500 is paid on property purchase up to £300,000 and then tiered up to a maximum of £6,250 on property purchase of £500,000 David Hollingworth at mortgage broker L&C Mortgages said: “Lenders remain highly competitive and continue to make small adjustments to improve rates wherever they can.  “That trend looks likely to continue so it’s unlikely to result in any major drops in rates But mortgage rates should remain relatively stable in the near term.” NatWest Bank is cutting selected purchase and remortgage fixed-rate deals by up to 0.24 percentage points while Halifax is trimming selected two and three-year fixed rates for home purchase but increased equivalent five-year deals Other lenders have made similar adjustments to their fixed-rate offers ahead of tomorrow’s decision on interest rates by the Bank of England (due at 12 noon on 20 March) NatWest is offering a fee-free purchase rate at 4.8% for borrowers with a 10% cash deposit (90% loan to value) It is also offering a fee-free two-year fixed rate for remortgage at 4.72% (75% LTV) Halifax is cutting selected two and three-year fixed rates by up to 0.15 percentage points but it has increased selected five-year fixed rates by up to 0.11 percentage points The new rates and deals will be live from tomorrow (20 March) Nationwide building society has lowered the cost of selected fixed rate deals by up to 0.26 percentage points for borrowers with a smaller deposit or equity in their home (effective from 21 March) three and five-year fixed rates for purchase and remortgage between 80% and 95% loan to value The new deals include many rates priced under 5% even for those with the smallest cash deposits the mutual lender is offering a five-year fixed rate for homebuyers with a 5% deposit (95% LTV) at 4.99% with a £999 fee The two-year purchase fixed rate for borrowers with a 10% deposit (90% LTV) has also dropped to 4.99% has cut a range of residential and buy-to-let deals including its shared ownership new build products It is offering a five-year fixed rate for purchase for borrowers with a 20% deposit (80% LTV) at 4.31% and has a product transfer deal (for existing customers wanting a new deal) at 4.04% (65% LTV) with a £1,995 fee It is offering a two-year fixed rate for remortgage at 4.42% with a £1,499 fee for borrowers with 25% equity in their property the specialist lender targeting first-time buyers has launched a new product to help get more borrowers onto the property ladder Its New Build Boost mortgage is available to those buying a new build home through the housebuilder Persimmon Homes (120 different sites across England) Gen H will lend a mortgage on an 80% loan to value basis lending an interest-free equity loan for the difference up to 95% LTV.  The five-year fixed rate deal the buy-to-let lender owned by Yorkshire building society has cut selected fixed-rate and tracker deals across its landlord range by up to 0.15 percentage points It is offering a three-year fixed rate at 4.59% for BTL purchase or remortgage (65% LTV) with a £995 fee and £250 cashback Its two-year fixed rate for remortgage is now 4.54% with a £1,995 fee (75% LTV) Laith Khalaf at AJ Bell said the prospects for interest rates remain uncertain: “Markets are pricing-in little chance of a rate cut at the next Bank of England meeting though two more rate cuts are currently expected by the end of the year.  there are substantial risks to this outlook The latest inflation reading for January came in hot and the macro-economic situation is volatile as Donald Trump’s trade policies threaten to unleash a global trade war which could damage growth and push up inflation “The Spring Statement in the UK may also contain some tax and spending decisions which influence the interest rate committee one way or another In April we will see the chancellor’s national insurance and minimum wage hikes come into effect which could also serve to increase prices for consumers thereby making the Bank of England wary of cutting rates which shows some willingness to stimulate the economy in the face of rising inflation While we may not get a change in interest rates at this forthcoming meeting the commentary and voting record will still be instructive as to the mood enveloping Threadneedle Street.” Santander and TSB have reduced the cost of fixed-rate borrowing ahead of next week’s interest rate decision from the Bank of England HSBC has cut selected deals for purchase and remortgage by up to 0.2 percentage points while Barclays has reduced the cost of deals for larger mortgages (£2 million or more) by up to 0.25 percentage points from 14 March and also lowered rates across its product transfer range for existing borrowers by up to 0.14 percentage points Santander has cut rates for new and existing residential and buy-to-let customers by up to 0.25 percentage points while TSB has cut selected fixed rates for new and existing customers by up to 0.15 percentage points (both reductions effective 14 March).  TSB has increased selected five-year fixes on deals up to 75% loan to value by 0.05 percentage points The Bank of England’s monetary policy committee (MPC) which meets 10 times a year to decide the level of the benchmark Bank Rate The inflation figures for February are expected on 25 March Nick Mendes at broker John Charcol says the latest round of cuts reflects growing competition with lenders looking to retain existing customers rather than an expectation that Bank Rate will fall: “With an estimated 1.8 million people coming off low pandemic-period fixed rates and lenders aiming to retain existing clients and secure new ones this has led to several high street lenders repricing downwards across the loan to value (LTV) brackets.” HSBC is now offering a two-year fixed rate for home purchase at 4.12% with a £999 fee also with a £999 fee (both deals require a 40% cash deposit) Rates have also been cut at higher LTV ratios HSBC’s rate is now at 4.85% with a £999 fee or 4.61% over five years with the same fee Barclays has a two-year fixed rate for purchase or remortgage at 4.21% for loans of £2 million or more while five-year equivalent deals start from 4.28% (both deals at 60% LTV) Santander and TSB will unveil their respective new rates and deals tomorrow (14 March) Barclays and Santander are among a small number of lenders offering fixed rates at under 4% (see story below) although these rates generally come with conditions or high fees who must have annual income or savings of at least £100,000 can get a rate of 3.98% on a five-year fix with a £999 fee The Mortgage Works, the buy-to-let lender owned by Nationwide building society has cut selected fixed rate deals for landlords by up to 0.3 percentage points It has a two-year fixed rate deal for purchase or remortgage at 3.24% with a 3% fee for borrowers 35% equity or more in their BTL property the specialist lender for borrowers with lower credit scores has cut rates by up to 0.7 percentage points across its higher LTV range for both new and existing residential borrowers.  It is offering a two-year fixed rate for new customers with a 5% deposit (95% LTV) at 6.54% with a £999 fee Equivalent five-year rates at 95% LTV have been cut by 0.7 percentage points from 6.69% to 5.99% the lender is offering deals at 80% LTV from 6.19% when the nil rate band thresholds will be lowered For buyers with a 25% cash deposit (75% LTV) the rate on offer is 5.28% with £2,500 cashback while the other deal for those with a 10% deposit (90% LTV) has a rate of 6.15% and pays £5,000 cashback Barclays has slashed the cost of selected fixed rate mortgages by up to 0.48 percentage points The latest move brings the lender’s lowest rate for purchase down to a market-leading 3.96% the ‘Green Home’ mortgage deal is restricted to purchases of energy-efficient new-build homes bought directly from the builder or developer It also requires a deposit of at least 40% and charges a £899 product fee Barclays’ equivalent five-year fixed rate for general purchase – with the same deposit and fee – has been pegged down to 4.06% from 4.09%.  The lender’s deepest reduction applies to its fee-free two-year fixed rate purchase deal at 90% loan to value (LTV) which has been cut from to 4.93% from 5.41%.  Barclays has also increased its maximum loan amounts for buyers with only a 10% deposit loans of up to £640,000 are available compared to the previous limit of £570,000 On the purchase of flats the maximum loan has been lifted to £310,000 from £275,000 Santander and Nationwide building society – now offer deals for new customers priced under 4% But these deals come with either strict eligibility criteria or high fees.  With the HSBC and Lloyds deals for example borrowers need to be Premier banking customers or have a packaged bank account with the lender.  And while Santander is offering two- and five-year fixed rates for purchase and remortgage at under 4% the fees are £1,999 for purchases and £1,749 for remortgages associate director at mortgage broker L&C Mortgages said: “It is good news to see some rates edging below the 4% mark.  Lenders are competing hard and taking any opportunity to pass on improved funding costs but these are often small tweaks and it doesn’t look to be signalling a collapse in rates.”  Here’s a round up of cuts made by other lenders also effective from today (5 March) Halifax has cut rates by up to 0.14 percentage points on selected two-year fixed rates for buyers with small deposits of 5% or 10% Among the new deals is a two-year fix priced at 4.87% with a £999 fee available up to 90% loan to value has also announced fixed rate cuts of up to 0.25 percentage points for remortgagers and up to 0.31 percentage points for existing customers NatWest has increased the cost of selected fixed-rate residential deals while reducing the cost of others (from 6 March) Among the rate cuts is a two-year fee-free deal for home purchase A small number of deals are rising by up to 0.08 percentage points including a five-year fix for purchase for those with a 10% deposit (90% LTV) TSB has cut selected fixed rate deals for new and existing customers by up to 0.1 percentage points Among its lowest rates is a 3.99% two-year fixed rate deal for existing customers looking for a new deal with the lender Customers must have at least a 40% deposit and pay a £1,495 product fee a lending brand owned by Nationwide building society has cut selected two and five-year fixed rates by up to 0.12 percentage points and selected buy-to-let rates by up to 0.21 percentage points MPowered Mortgages has cut its two and three-year fixed rate deals for home purchase while the three-year rates start from 4.12% these rates apply to 60% LTV borrowing and come with a £999 fee Virgin Money, the lending brand owned by Nationwide building society has reduced selected fixed rate deals for residential and buy-to-let borrowers the lender has cut the cost of its 10-year fixed rate deals by 0.68 percentage points with rates now starting from 4.89% Gen H has slashed fixed rates across its range by up to 0.14 percentage points for new customers and up to 0.3 percentage points for existing customers looking for a product transfer deal which offers innovative deals to first-time buyers including buying with friends or with a parental guarantee is offering a five-year fixed rate at 5.36% with a £999 fee in exchange for a 20% deposit Buyers will be required to use Gen H’s legal services to qualify for the deal Net mortgage borrowing jumped by £900 million in January 2025 according to the Bank of England Money and Credit report Approvals for remortgage rose by 2,200 to 32,900 the number having fallen for the previous two months Approvals for home purchase  edged down by 300 in January however to a total of 66,200 compared to a rise of 400 in December 2024 The next Bank of England decision on interest rates is scheduled for Thursday 20 March Nationwide building society has cut the cost of fixed rate deals by up to 0.25 percentage points from today resulting in a five-year fix priced at 3.99% It means the lender is now one of five offering deals under the all-important 4% mark Virgin Money and The Mortgage Works – both lending brands owned by Nationwide – Coventry building society and Principality building society have also all cut rates from today They follow a string of price reductions seen in the mortgage market over the past week in the wake of falling swap rates on which fixed rate deals are priced Other lenders to have announced cuts earlier this month include Halifax and NatWest said: “Fixed-rate mortgages are continuing to edge lower mainly due to a notable drop in swap rates These have now fallen and remain stable at below 4% marking a significant shift from last month.” Here’s more detail on this week’s latest movements in the mortgage market: Nationwide is offering a five-year fixed rate for existing customers looking to switch at 3.99% with a £999 fee Borrowers require at least 40% equity in their property to be eligible (60% loan to value) The same deal for new remortgage customers carries a higher £1,499 fee Costs of equivalent two-year fixed rates have fallen to 4.09% with a £999 fee for existing customers Nationwide has also cut the cost of first-time buyer and homemover deals It is offering a five-year rate of 4.74% for first-time buyers with a 10% deposit (90% LTV) with a fee of £999 The lender’s five-year fix for new customers moving home with at least a 15% deposit is now priced at 4.39% with a £999 fee Virgin Money has cut the cost of selected residential fixed rate mortgage deals for home purchase by up to 0.1 percentage point It is the lender’s second rate reduction in two weeks after it nudged down purchase rates by up to 0.07 percentage points on 18 February The lender is offering a two-year fixed rate for purchase for borrowers with at least a 10% deposit at 4.88% with a £995 fee (90% LTV) and a fee-free five-year fixed rate for purchase at 5.18% for borrowers with a 5% deposit (95% LTV) and five-year fixed rates by up to 0.11 percentage points for existing residential customers with a 25% deposit looking to transfer their deal.  Costs over five-years start from 4.12% up to 65% LTV It has also cut selected buy-to-let fixed rates for purchase and remortgage by up to 0.1 percentage point TSB has cut selected fixed rates for buyers and remortgagers by up to 0.15 percentage points and buy-to-let fixed rates by up to 0.1 percentage points The bank’s two-year fixed rate for purchasers with a 10% deposit is now priced at 5.54% Coventry building society has lowered selected residential and BTL deals across its range Among the new rates is a two-year residential fixed rate at 4.38% with a £999 fee (75% LTV) Principality building society has cut rates on selected fixed rates over two as well as reducing rates across its cashback deals It is offering a market-leading two year fixed rate for purchase and remortgage at 75% loan to value at 4.29% with a £1,499 fee.  the specialist lending arm of Nationwide building society has cut product transfer rates for existing buy-to-let customers by up to 0.35 percentage points.  It is offering a two-year standard BTL fixed rate at 3.59% with a 3% fee (available up to 65% LTV) and an equivalent deal with no fee at 4.89%.  The five-year fixed rate for standard BTL borrowing is now priced at 3.94% with a 3% fee (also 65% LTV) The number of buy-to-let mortgage products has hit a record high according to financial data company Moneyfacts This is the largest number since Moneyfacts began recording buy-to-let data in 2011 First Direct has cut rates on more than 100 deals across its new business range by up to 0.3 percentage points It follows cuts by Halifax and Leeds building society late last week (see stories below) who doesn’t offer deals through mortgage brokers said its biggest reductions applied to its two-year fixed rate remortgage deal for borrowers with at least 15% equity in their home (85% loan to value) The rate on this deal was cut to 5.04% from 5.34% First Direct’s lowest mortgage rate is a five-year fixed rate deal for home purchase priced at 4.13% with a £490 fee It is available for those with at least a 40% cash deposit (60% LTV) Existing First Direct customers can secure the same deal at 4.10% For borrowers with a smaller deposit First Direct is offering a five-year home purchase rate of 4.74% (at 90% LTV) in contrast to other lenders cutting rates Virgin Money has withdrawn selected deals and nudged up the rate on its five-year fixed rate for purchase for borrowers with a 15% deposit (85% LTV) from 4.43% to 4.46% Broker Nick Mendes at John Charcol said: “First Direct’s decision to reduce mortgage rates is a welcome move for borrowers It reflects the competitive nature of the market and offers potential savings for first-time buyers “The substantial reductions in higher-LTV mortgages such as the 5-Year Fixed Standard at 90% LTV will be particularly beneficial for first-time buyers with smaller deposits.” has adopted a bullish start to 2025 by reducing the cost of selected remortgage deals by up to 0.35 percentage points It follows cuts to fixed-rate deals for new and existing customers of up to 0.21 percentage points by Leeds building society Halifax has cut the cost of its 18-month and three-year fixed rates for remortgage. The 18-month deal is reduced from 4.37% to 4.22% (at 60% loan to value) and from 4.62% to 4.39% (at 75% LTV) Halifax’s fee-free remortgage three-year fix at 60% LTV is down 0.01 percentage points to 4.41% while the equivalent deal with a £999 product fee has been reduced by 0.05 percentage points to 4.18% The equivalent three-year remortgage deals at 80% LTV up to 90% LTV have been cut by between 0.04 percentage points and 0.11 percentage points The bank is offering a three-year fix at 4.73% with a £999 fee at 80% LTV Among the new deals offered by Leeds building society is a two-year fix for purchase or remortgage at 4.15% (65% LTV) with a £1,499 fee The lender also has a five-year fixed-rate deal for home purchase for borrowers with a 10% deposit (90% LTV) Borrowing for home purchase and remortgages to a new lender both dipped in November 2024 according to the latest data released in the Bank of England’s Credit and Money Report.  Mortgage approvals for house purchase fell by 2,400 to 65,700 while remortgage activity dropped by 300 to 31,200 in total But the Bank says both figures remain above the 12 month average – at 60,400 and 30,000 respectively said: “Mortgage approvals for new purchases slipped which comes as a surprise and suggests ups and downs for the market in coming months rather than a steady improvement.  “Remortgaging numbers dipped very slightly but this could mean more borrowers stuck with their existing mortgage providers rather than switching to a new lender “The effective interest rate paid on new mortgages decreased again to 4.5% as lower pricing at the time is reflected in the official figures With a number of lenders cutting rates this week this may dip further in coming months if others follow suit.” TSB and Yorkshire building society are among lenders taking a knife to fixed rate mortgage deals this week as swap rates – the rate at which banks lend to each other in the wholesale markets – have edged downwards which are a major influence on fixed rate mortgage pricing and therefore deals available to borrowers had risen slightly following the Autumn Budget due to market fears over government borrowing and spending But in recent days the rates have started to fall back prompting many major lenders to announce cuts Santander has reduced selected residential fixed rates across its purchase and remortgage deals by up to 0.23 percentage points At the same time the bank’s deals for new build purchase have been cut by 0.16 percentage points and rates for larger loans (£250,000 or more) have been lowered by 0.1 percentage point The lender’s buy-to-let deals have also been lowered in cost by up to 0.16 percentage points The bank has also announced it is adding £250 cashback on completion to all residential purchase mortgage deals at 85% loan to value or higher (where the borrower has a 15% deposit or less) Santander is now offering a two-year fixed rate for residential remortgage priced at 4.3% (60% loan to value) and an equivalent five-year remortgage deal at 4.17% (also 60% LTV) has also confirmed it is cutting rates on two and five-year fixed rate deals for residential home purchase for borrowers with a 10% deposit (90% LTV) Its five-year purchase deal at 90% LTV is now 4.74% with a £999 fee Barclays has lowered the rates on its five-year fixed rate residential purchase and remortgage products by up to 0.14 percentage points The lender is offering a five-year purchase deal priced at 4.11% with an £899 fee for buyers with at least a 40% cash deposit The bank is also offering a five-year fixed remortgage deal at 4.25% with a £999 fee for borrowers with at least 25% equity in their home (75% LTV) Virgin Money is cutting the cost of selected residential purchase rates by up to 0.22 percentage points including some shared ownership and Own New rates for first-time buyers Its rates start from 4.37% for a two-year fixed rate at 65% LTV with a £995 fee TSB has cut fixed rates by up to 0.4 percentage points across its residential new business range and product transfer deals for existing customers the bank has reduced three-year fixed rate purchase deals by up to 0.22 percentage points and five-year equivalent purchase deals by up to 0.15 percentage points The lender’s two-year fixed rates for purchase now start from 4.37% (at 60% LTV) with a £995 fee with equivalent five-year purchase deals starting from 4.34% (also 60% LTV) Yorkshire building society (YBS) has pegged down selected fixed rates across its range by up to 0.27 percentage points Among its new offers is a two-year fixed rate for remortgage at 4.66% for borrowers with at least 25% equity in their home (75% LTV) There is a £495 fee and £250 cashback on completion has cut selected residential and buy-to-let rates It follows cuts by the lender of up to 0.3 percentage points less than a week ago Among its new deals Accord is offering a fee-free two-year fix for residential purchase at 5.09% at 75% LTV Principality building society has cut selected mortgage rates The mutual lender has reduced selected residential fixed rates over two its five-year fixed rate deals for borrowers with just 10% equity in their property have been increased by 0.05 percentage points NatWest and HSBC are cutting the price of selected fixed-rate mortgage deals suggesting competition is persisting in the run-up to Christmas The moves follow rate reductions by Barclays last week (see stories below),  have stabilised after rising in the weeks following the Autumn Budget Many lenders are now adjusting their mortgage pricing down albeit with relatively modest rate reductions NatWest has cut selected residential and buy-to-let fixed rates effective from tomorrow (6 December) Its two-year residential deal for home purchase for borrowers with at least 40% cash deposit (60% loan to value) is down from 4.37% to 4.32% with a £999 fee.  The same deal for borrowers with at least 25% deposit is down from 4.59% to 4.49% HSBC has cut rates on selected residential and buy-to-let (BTL) deals It is offering a five-year fixed-rate deal at 4.19% for remortgage (60% LTV) with a £999 fee Its two-year equivalent deals now start from 4.44% Coventry building society has cut selected fixed rate deals The lender has also reduced rates on BTL deals by up to 0.25 percentage points It is offering a fee-free two-year fixed rate for residential purchase for buyers with at least a 35% cash deposit has cut selected residential and BTL fixed rates The lender has cut the rate of a two-year fixed BTL purchase deal Among its residential fixed rate changes, Accord has cut the rate on its flagship first-time buyer product is available to customers through brokers and direct from Yorkshire building society Gen H has cut selected deals for first-time buyers by up to 0.25 percentage points including fixed rates at 90% and 95% LTV It is offering a five-year fixed rate at 5.6% for borrowers with a 10% cash deposit But high street lender TSB has pushed up the cost of its two and five-year fixed rates by up to 0.1 percentage points at higher loan to value ratios Its first-time buyer five-year fixed rates at 90% loan to value now start from 4.94% with a £995 fee or at 5.04% with no fee has also increased rates on selected residential mortgage deals for borrowers with up to a 10% deposit or equity (95% LTV and 90% LTV) Its fee-free five-year purchase rate at 95% LTV has risen by 0.3 percentage points to 5.54% while the equivalent deal with a £999 product fee rises 0.1 percentage points to 5.29% Nick Mendes at broker John Charcol said: “Rate cuts by NatWest and HSBC reflect a broader trend among lenders capitalising on a period of stability in [wholesale] ‘swap’ rates following a month of volatility This volatility was driven by market adjustments to future base rate expectations in light of inflationary pressures highlighted after the Budget.  markets had priced in a reduction in the Bank of England Bank Rate beginning in February this has now moderated to expectations of three to four cuts at most Barclays and NatWest have been quick to reprice and ensure any last opportunities to win business in 2024 are taken before demand typically slows for the festive season.” Santander has increased the cost of selected fixed-rate deals for purchase and remortgage by up to 0.18 percentage points while Barclays has cut a range of its fixed rates with some lenders reducing rates as they vie for new business before the year end typically where they have offered best buys and are looking to limit demand Santander has been offering two and five-year fixed deals at market leading rates Its latest rate increase (effective from 28 November) is likely to be a way to manage its business levels It has also increased new-build fixed rates plus selected buy-to-let fixed rates by up to 0.13 percentage points.  for existing customers looking to switch to a new fixed rate with the bank are also tweaked upwards by 0.09 percentage points across residential deals and by 0.04 percentage points on its buy-to-let switcher range.  Santander is also set to launch a new range of two-year residential purchase fixed rates for borrowers buying property worth up to £250,000 The bank’s standard two-year residential remortgage rates now start from 4.3% with a £999 fee (at 60% loan to value) and the equivalent five-year rate is at 4.29% MPowered Mortgages is cutting three-year fixed-rate deals for residential purchase and remortgage by up to 0.12 percentage points It follows cuts by the lender to two and three-year rates of up to 0.28 percentage points just two weeks ago bucking the trend of other lenders who have been increasing rates The lender is offering a three-year fix for purchase at 4.09% with a £999 fee for borrowers with at least 40% deposit (60% LTV) Barclays has cut selected residential fixed rates for purchase and remortgage by up to 0.2 percentage points Its five-year remortgage deal for borrowers with 40% equity (60% loan to value) is cut to 4.17% The bank’s fee-free two-year fixed rate for purchase for borrowers with a 10% cash deposit (90% LTV) has fallen from 5.49% to 5.39% While its two-year purchase deal at 75% LTV has dropped to 4.36% with an £899 fee the rates at which banks lend to each other and which influence fixed-rate mortgage pricing having risen in the immediate aftermath of the Autumn Budget Nick Mendes at broker John Charcol said: “Barclays has made a bold move as the first high street lender to cut mortgage rates in response to recent market changes.  “With swap rates easing over the past couple of days it’s great to see a lender acting quickly to reflect the slightly improving conditions This could also signal the potential for more repricing across the market if conditions remain stable.” TSB has made a range of rate changes across its residential and BTL products including increasing rates by 0.15 percentage points on its five-year fixed rates for first-time buyers and movers at 90% and 95% LTV.  But at the same time the bank has cut two and five-year buy-to-let fixed rates by up to 0.1 percentage points for landlords with at least 40% equity (60% LTV) Selected product transfer rates for residential borrowers will also fall by up to 0.15 percentage points is increasing selected residential fixed rate mortgage deals by up to 0.3 percentage points from Monday (2 December) The rate rises will apply to core residential two- and five-year fixed rates at 90% and 95% LTV including product transfer deals for existing customers looking to switch The bank’s two-year fixed rates for buy-to-let at LTVs of between 60% and 75% will also increase by 0.1 percentage points Halifax has launched a selection of fixed-rate remortgage deals with an 18-month term Rates start from 4.37% for borrowers with at least 40% equity in their property While a homeowner with 20% equity could secure a rate at 5.04% head of mortgages at Halifax Intermediaries said: “Brokers have told us that their clients are keen to see more shorter-term products we’re delivering the certainty of fixed payments balanced with a term that offers more flexibility.” NatWest Bank has nudged up the cost of selected fixed rate deals by 0.1 percentage points for new residential borrowers It follows similar increases to fixed rates this week by Virgin Money and Clydesdale Bank NatWest’s rate increases affect its two and five-year fixed rate deals Help to Buy and green mortgage products up to 85% loan to value (LTV) The bank’s two-year fixed rate for purchase for borrowers with a 40% cash deposit (60% LTV) has been hiked from 4.22% to 4.32% with a £1,495 fee The lender’s five-year fixed rate for purchase (also at 60% LTV) has risen from 4.19% to 4.29% with a £995 fee Virgin Money has increased the cost of selected two and five-year fixed rate deals at 85% LTV and 90% LTV by up to 0.15 percentage points also effective from tomorrow (22 November) including its Own New scheme and shared ownership mortgage deals will rise in cost Clydesdale Bank has increased selected residential fixed rates by up to 0.29 percentage points while selected buy-to-let deals have gone up by 0.3 percentage points.  The rate rise affects two and five-year residential fixed rates for borrowers with 15% deposit or equity or less – plus larger loans and fixed rates for newly qualified professionals (part of Clydesdale’s Professional mortgage range) The last of the sub-4% five-year fixed rates (for borrowers with at least 40% deposit or equity) were pulled from the shelves at the end of last week.  And the average two year rate is now at 5.53% while the average five-year rate is at 5.26% This represents a 0.11 percentage point and 0.13 percentage point increase respectively compared to where average rates were just two weeks ago (at 5.42% and 5.13% respectively) commented: “Following the inflation data this week I’d expect fixed mortgage rates to continue rising as markets adjust their forecasts on interest rates Lenders will likely adopt a cautious stance mirroring the broader market sentiment.” Mr Mendes added that price competition is unlikely to be a priority for lenders as the festive period gets underway NatWest and Barclays have both made substantial increases to the cost of fixed rate mortgage borrowing as they look to control business volumes Barclays has increased residential and buy-to-let fixed rates by as much as 0.56 percentage points while NatWest has hiked rates by up to 0.35 percentage points Both lender increases are effective from tomorrow (14 November) The moves by Barclays and NatWest follow similar increases by a swathe of major lenders in recent days including HSBC the interest rates at which banks use to lend to each other and which influence fixed mortgage rates for borrowers have been rising since the Budget on 30 October Markets now believe that interest rates may not fall as quickly as had previously been predicted This is despite the Bank of England cutting its benchmark Bank Rate from 5% to 4.75% earlier this month The recent fixed rate rises by other lenders had left Barclays and NatWest in the best-buy position for a number of mortgage deals which has likely led to a flood of applications from borrowers.  Brokers say today’s rate increases by both high street lenders are likely due to these banks looking to control their business volumes in uncertain market conditions NatWest has increased the rate on its best-buy five-year fixed rate deal for residential purchase from 3.84% to 4.14% for borrowers with at least 40% equity in their home (60% loan to value) The same five-year deal with a lower £995 fee goes up from 3.89% to 4.29% while the fee-free option has risen from 3.99% to 4.29%.  The lender’s five-year deal for home purchase at 75% LTV with no fee will be increased from 4.09% to 4.44%.  Barclays has increased the cost of its best-buy two-year fixed rate for home purchase from 3.99% to 4.33% which requires buyers to have a 40% cash deposit (60% loan to value) The lender’s two-year fixed rate for remortgage at 4.03% Barclays two-year fixed rate for residential purchase for large loans has gone up by 0.56 percentage points from 4.38% to 4.94% This is for buyers with at least 15% cash deposit (85% LTV) and there is a £1,999 product fee.  Nick Mendes at broker John Charcol commented: “Both NatWest and Barclays’ rate adjustments reflect the broader trend of rising costs in the lending market influenced by ongoing economic pressures and changes in the interest rate environment.” TSB is increasing selected fixed rate deals effective from 15 November Its three-year fixed rate deals for residential purchase and remortgage are increased by 0.2 percentage points while its shared ownership and shared equity deals rise by up to 0.3 percentage points Selected two and five-year buy-to-let fixed rates rise by up to 0.3 percentage points The bank’s product transfer deals for existing borrowers have also been increased by up to 0.1 percentage points Virgin Money has increased the cost of a range of its residential purchase deals It is the bank’s third increase this month Among the rate rises its two- and five-year purchase deals at 85% LTV have increased in cost with five-year rates starting at 4.59% with a £999 fee A number of major lenders are increasing the cost of fixed rate mortgage deals following a similar move by Santander (see stories below) as competitive deals are causing a rush of business HSBC is nudging up the cost of a wide range of residential and buy-to-let fixed rates Rates will rise on selected two and five-year purchase and remortgage residential deals five and 10-year fixed rates on product transfer deals (these are rates available to existing customers looking for a new rate) Nationwide building society is increasing selected fixed rates while reducing rates on other deals Full details will not be unveiled until tomorrow (13 November) but the mutual lender has confirmed that offers for new customers as well as existing customers looking to transfer their deal or increase their borrowing Virgin Money has also announced it is increasing selected fixed rate deals for residential purchase and remortgage by up to 0.2 percentage points from tomorrow (13 November) in its second rate hike this month It is also increasing some buy-to-let fixed rates while selected product transfer deals for existing borrowers will rise by up to 0.25 percentage points TSB has increased rates by up to 0.3 percentage points across selected two- and five-year fixed rate residential purchase and remortgage deals At the same time it has hiked selected five-year fixed rate product transfer deals by up to 0.2 percentage points Broker Nick Mendes at John Charcol says HSBC has been offering close to market-leading deals and that its latest repricing is probably due to the bank looking to control application levels and service standards He said: “Other lenders have not been offering such low rates This has led to an influx of applications for deals with HSBC and other market leaders prompting rapid rate changes to manage demand.” David Hollingworth at broker L&C Mortgages commented yesterday: “Markets are now anticipating that rates may need to remain a little higher for longer and that has pushed up costs for lenders Many lenders have already made increases and those are likely to continue as the market finds its level.” But while some lenders are pushing up fixed rates other lenders are taking the opportunity to cut rates and grab greater market share MPowered Mortgages has slashed the cost of its two and three-year residential mortgage rates by up to 0.28 percentage points The lender is offering a two-year fixed rate deal for home purchase at 4.21% for those with at least a 40% cash deposit (60% LTV) with a £999 fee Three-year equivalent fixed rates start at 4.19% (60% LTV) Santander has hiked the cost of a wide range of its fixed rate mortgage deals despite the Bank of England cutting interest rates by 0.25 percentage points last week The high street bank has notified mortgage brokers it will raise selected residential fixed rates by up to 0.29 percentage points and the cost of some buy-to-let (BTL) fixed rates by up to 0.31 percentage points Santander’s new rates and deals will be unveiled and available online from tomorrow morning (12 November).  The rises will affect new borrowers as well as existing customers coming to the end of their deal and looking for a new rate with the lender It follows rate increases by a number of lenders in recent days including HBSC Santander has offered a number of market-leading fixed rates in recent weeks including the lowest two-year fixed rate for purchase at 3.96% with a £999 fee for borrowers with at least a 40% cash deposit (60% loan to value).  Its equivalent deal for borrowers with a 25% deposit (75% LTV) at 4.09% is also currently among the market leaders Both deals are expected to rise from tomorrow Nick Mendes at broker John Charcol said that today’s move from Santander was to control business volumes arising from these highly competitive deals: “Santander had recently reduced its rates and had already priced in the latest Bank Rate reduction “Santander has no doubt seen a surge in applications from clients looking to secure current rates David Hollingworth at broker L&C Mortgages said: “Markets are now anticipating that rates may need to remain a little higher for longer and that has pushed up costs for lenders “Last week’s Bank Rate cut had been expected so was already factored into fixed rates but the forecast has shifted in recent weeks as the potential impact of the Budget on inflation has fed through Many lenders have already made increases and those are likely to continue as the market finds its level.” The choice of mortgages for borrowers has slipped significantly this month It is the biggest monthly fall since July 2023 The average shelf-life of a mortgage deal also fell from 21 days last month has increased selected fixed rate mortgage deals on the eve of the next interest rate decision by the Bank of England’s influential Monetary Policy Committee TSB has also increased the cost of selected fixed rate deals while cutting the cost of borrowing for other customers Market experts are predicting the central bank will cut its benchmark Bank Rate from 5% to 4.75% when the MPC meets tomorrow following a sharp fall in inflation last month to 1.7% But despite the expectations around Bank Rate a number of mortgage lenders have been repricing their fixed rates upwards in recent days and weeks.  Brokers say much of this activity is largely about lenders controlling their business volumes and adjusting to swap rates (interest rates used by banks in the wholesale markets) which have ticked up slightly since the Budget on 30 October Virgin Money has increased selected residential purchase and remortgage rates buy-to-let deals and product transfer rates (for existing borrowers) by up to 0.2 percentage points The bank is increasing selected residential purchase fixed rates from 70% loan to value (LTV) up to 95% LTV as well as a number of fixed remortgage rate deals from 75% LTV up to 90% LTV Its product transfer deals will increase by up to 0.1 percentage points with five-year fixed rates now starting from 3.99% (60% LTV) which is the lending brand owned by Virgin Money has increased selected purchase fixed rates by up to 0.32 percentage points Its two and five-year remortgage fixed rates at 75% LTV will be increased by up to 0.20% Deals are available exclusively through brokers TSB has increased its five-year fixed rate deals for residential purchase at 60% LTV by 0.1 percentage points from tomorrow (7 November).  But the bank has also cut selected two- and five-year fixed rates for first-time buyers and homemovers (for those with at least a 10% cash deposit) as well as its two-year fixed rate remortgage deals at between 60% LTV and 80% LTV HSBC has increased the cost of a wide range of its fixed rate deals for new and existing customers It follows a string of other major lenders to make hikes and other adjustments after last week’s Budget announcement.  it is increasing selected residential purchase and remortgage rates including deals for first-time buyers – plus product transfer deals available to existing borrowers a small number of rates have also been cut by the high street bank including its two-year fixed deals for purchasers with deposits of between 10% and 25% Its two-year product transfer deals available at a 40% deposit have also been cut David Hollingworth at mortgage broker London & Country Mortgages said: “The expectation appears to be that interest rates may have to remain a little higher for longer than previously anticipated “That volatility has initially been most evident in rate withdrawals from smaller and more specialist lenders but is now feeding through to bigger Swap rates have settled in recent days, although they are higher than prior to last week’s Budget on 30 October Swap rates are the interest rates banks use to lend to each other in the wholesale markets but which influence fixed mortgage rates for consumers Recent rate changes across the market reflect a mixed picture with both increases and cuts being made by lenders as they reposition themselves to control business volumes and improve margins Halifax and Coventry building society have both increased selected fixed rates in recent days increasing costs for buyers and remortgage borrowers.  Santander has cut selected rates by up to 0.36 percentage points Halifax has increased selected purchase and home mover deals but it also cut several rates at the same time Coventry will increase fixed rates across its residential and buy-to-let ranges from tomorrow (5 November) But lenders and mortgage brokers still widely expect the Bank of England’s monetary policy committee (MPC) to cut interest rates when it next meets this Thursday (7 November) The benchmark Bank Rate is currently at 5% Mortgage broker Nick Mendes at John Charcol said: “I’m still pretty certain there will be a rate cut by the Bank of England on Thursday But it will be interesting to see the voting behaviour of the members of the Monetary Policy Committee and also to read the notes following the meeting.  “If there are any concerns expressed about the recent Budget for example then this could have a negative effect on the markets which could put upward pressure on mortgage rates.” Mortgage rates are moving in both directions in the wake of Wednesday’s Budget as lenders digest the tax-raising measures increased government borrowing and ambitious programme of capital investment it contained is trimming selected rates by up to 36 percentage points This comes on the heels of yesterday’s announcement from Virgin Money that it was raising certain residential and buy-to-let fixed rates by up to 0.15 percentage points (see story below) is cutting some product transfer rates by 20 percentage points and Leeds building society is launching a raft of fixed-rate deals and cutting rates on some loans for borrowers with a 25% deposit Lenders are mulling what action the Bank of England might take on interest rates It meets next week (7 November) and on 20 December to determine the level of the Bank Rate head of analysis at investment platform AJ Bell said: “The fiscal loosening announced by the Chancellor has prompted markets to pretty much rule out two interest rate cuts this year.  market expectations were for the base rate to fall to 4.5% [in two 0.25% steps] by the end of this year and then to under 4% by the middle of 2025 But the inflationary nature of the measures announced in the Budget are forecast by the Office for Budget Responsibility to add 0.4% to inflation in the next tax year thereby putting pressure on the Bank of England to keep rates at higher levels for longer.” Khalaf said markets are still pricing-in a 0.25 percentage points rate cut from the Bank in November but they do not expect a further cut before Christmas: “We can expect some impact from higher rate expectations in the mortgage and savings market We might start to see mortgages creeping up again just when borrowers thought we were on a firmly downward path.  savings rates can be expected to get a boost from the Budget and the adjustment to interest rate expectations Higher cash rates aren’t exactly going to fund an early retirement but savers can probably sit on their coffers a bit more comfortably Virgin Money has increased the cost of selected residential and buy-to-let fixed rates by up to 0.15 percentage points The move comes before next week’s Bank of England decision on interest rates (due 7 November) and follows a number of other lenders who have pushed rates up in recent days including Halifax and TSB (see stories below) Virgin has increased selected two and five-year fixed rates for home purchase It has also raised rates on selected two and five-year remortgage deals for borrowers with at least 25% equity in their property (75% LTV) Its five-year fixed rate for remortgage will now start from 4.12% (65% LTV) with a £999 fee will be effective from 8pm today (30 October) The bank has also increased selected buy-to-let fixed rates at 60% and 75% loan to value Five-year fixed-rate deals will now start from 3.88% three and five-year fixed rates for product transfer (deals for existing Virgin customers looking to switch) have also increased by up to 0.16 percentage points Among the new deals the bank is offering a fee-free two-year fixed rate at 4.75% (75% LTV) TSB has increased the cost of selected residential and buy-to-let mortgage rates the day before Rachel Reeves delivers her first Budget to the House of Commons Uncertainty around the changes the Chancellor might announce is causing jitters in financial markets which has resulted in a rise in the wholesale rates used by lenders when setting their mortgage fixed rates TSB is increasing its short-term residential fixed rates effective from tomorrow (30 October).  It has hiked the cost of two-year purchase deals for borrowers with between a 10% and a 25% cash deposit (75% up to 90% loan to value) by up to 0.1 percentage points Its two-year fixed rates for remortgage at 60% LTV are up by 0.25 percentage points.  The bank currently offers a two-year deal for remortgage at 4.09% with a £1,495 fee The new rates and deals will be live on the bank’s website from tomorrow TSB is also increasing the cost of two and five-year fixed rate deals for buy-to-let borrowers by up to 0.1 percentage points This will only affect deals for landlords with at least 25% deposit or equity in their property The latest data from the Bank of England on consumer credit and borrowing reveal that net approvals for mortgages for house purchase increased by 700 in September to 65,600 This is the highest level since August 2022 Approvals for remortgage last month also rose The numbers were up to 30,800 in September managing director of specialist lender MT Finance says: “There is some positivity with net mortgage approvals at their highest since August 2022 showing there is consumer confidence from a purchase perspective But we need this to continue for a period of time “Tomorrow’s Budget is hanging over everyone there is a sense of uncertainty among clients and people holding fire until we have some clarity If we end up with a softer Budget than was expected just a month ago combined with the expected reduction in interest rates that will encourage people to go out and transact.” Barclays has slashed the cost of fixed rate residential borrowing by as much as 0.26 percentage points on selected deals less than two weeks after it pushed rates up in volatile market conditions on deals available direct and through brokers will be effective from tomorrow (29 October) The bank’s two-year fix for purchase for borrowers with at least a 40% cash deposit (60% loan to value) has been cut to 3.99% (from 4.1%) The equivalent deal for purchase for borrowers with a 25% cash deposit (75% LTV) is now priced at 4.12% Barclays remortgage deals will now start at 4.03% for a two-year fixed rate (60% LTV) or at 4.28% (75% LTV) both with a £999 fee The bank has also cut selected 10-year fixed rates for purchase and remortgage It is offering a deal at 4.85% over 10 years with a £999 fee in exchange for a 40% deposit for existing Barclays customers looking for a new fixed rate Its two-year deal at 75% LTV is now priced at 4.28% while its 10-year rate at 75% LTV is priced 4.85% The deal cut by the full 0.26% is the lender’s fee-free 2-year fix priced at 4.59% at a 75% LTV MPowered Mortgages has cut selected two-year fixed rate deals The lender’s lowest two-year rate for home purchase falls to 4.11% (60% LTV) with a fee of £999 while the lowest two-year remortgage rate will fall to 4.29% (also at 60% LTV) with a £999 fee NatWest Bank has slashed selected residential fixed rates by up to 0.41 percentage points bringing back sub-4% five-year fixed-rate deals The bank increased its fixed rates last week including raising its five-year deal for home purchase for buyers with at least a 40% cash deposit (60% loan-to-value) from 3.79% to 4.09% NatWest is now offering the same five-year fix for purchase at 3.84% with a £1,495 fee It also has an equivalent two-year deal at 3.99% The market-leading deals for home purchase are currently on offer from Halifax at 3.77% with a £999 fee over five years and at 3.94% with a £999 fee over two years is on its two-year fixed-rate purchase deal at 75% LTV with a £995 fee The fixed rate mortgage market has been volatile in recent weeks with some lenders pushing up the cost of borrowing (see stories below) as inter-bank ‘swap’ interest rates ticked up due to uncertainty around potential tax increases in the Budget on 30 October.  Swap rates are a major factor in the pricing of fixed borrowing rates for mortgage customers Other lenders are cutting rates as competition remains hot MPowered Mortgages has cut selected three-year fixed rate deals by up to 0.3 percentage points with immediate effect.  include a purchase deal at 3.93% with a £999 fee (60% LTV) The equivalent three-year remortgage rates now start from 4.08% But Halifax for Intermediaries is increasing the cost of selected five-year fixed rate deals for home purchase from tomorrow (25 October) The lender is currently offering best-buy rates for purchase over five-years at 3.77% (60% LTV) and 3.87% (75% LTV) But the bank’s 0.08 percentage point hike will lift it out of the market-leading rates most likely as it looks to control its business volumes has also increased selected residential fixed rates by up to 0.25 percentage points and selected buy-to-let deals by up to 0.1 percentage point It is offering a residential two-year broker-exclusive deal for remortgage at 4.42% with a £1,999 fee (65% LTV) and an equivalent five-year deal at 4.14% HSBC is hiking a range of its residential purchase and remortgage rates The move follows rate increases in recent days from Halifax This market volatility is due to uncertainty around potential tax increases and government spending to be announced in the Budget on 30 October Swaps – the rates at which banks lend to each other – have jumped up over the past week Lenders also increase rates when they want to reduce demand in order to maintain service standards HSBC will raise the cost of its two- and five-year fixed rates for residential purchase and remortgage for borrowers with a 40% cash deposit (60% LTV) This includes its current market-leading five-year fixed rate for remortgage at 3.83% with a £999 fee (60% LTV) selected deals at higher loan-to-value ratios will be reduced Full details and the new rates and offers will be unveiled by HSBC tomorrow Nick Mendes at broker John Charcol said: “HSBC’s latest rate changes reflect a strategic and varied approach with a mix of increases and decreases.  “The reductions in its two-year fixed standard products at 80% and 85% LTV suggest a focus on making mid-tier borrowing more attractive particularly for homeowners looking to remortgage point to a more cautious response to recent market volatility and rising funding costs.” Virgin Money is increasing selected residential and buy-to-let fixed rates by up to 0.1 percentage points also from tomorrow (22 October) Among the increases is its residential Fix and Switch remortgage fixed rate which rises by 0.09 percentage points to 4.74% The deal is fee free and requires 25% equity in the property (75% LTV) Fix and Switch is a five-year fixed rate product with the option to switch away penalty-free after two years Virgin’s two-year BTL fixed rate deal for landlords with at least 40% equity is increased by 0.1 percentage points to 4.29% It charges a £2,195 fee.The bank’s product transfer deals have also been hiked by up to 0.1 percentage point with five-year deals now starting from 3.89% (65% LTV) with a £1,495 fee Virgin has also launched a fee-free one-year fixed rate deal for existing customers (product transfer) John Charcol’s Nick Mendes added: “While these repricing changes signal short-term market volatility they don’t necessarily indicate a long-term trend falling inflation has strengthened the Bank of England’s position to consider rate cuts in November and possibly December.  the market remains sensitive to changes in the economic outlook with attention focused on next week’s Budget for further direction.” Halifax for Intermediaries and Barclays Bank are both increasing their fixed mortgage rates from tomorrow (18 October) The rate changes come just a day after government data showed the annual rate of inflation had fallen to 1.7% which presents a stronger case for the Bank of England’s Monetary Policy Committee (MPC) to cut interest rates when it next meets on 7 November But uncertainty around potential tax increases and government spending which will be announced in the Budget on 30 October which are the rates at which banks lend to each other and which help determine fixed mortgage costs to reprice their mortgage deals higher (see stories below) Barclays is currently at the top of the best buy tables across a number of loan-to-value sectors Experts believe today’s hike is likely a move to control business volumes and maintain service standards Barclays has pushed up the rate on its best buy five-year fixed rate for home purchase for borrowers with a 25% cash deposit (75% loan to value) from 3.85% to 4.05% The equivalent five-year fixed rate deal at 60% LTV rises from 3.76% to 3.96% Barclays two-year fixed rate for remortgage (at 60% LTV) is set to rise from 3.99% to 4.19% with a £999 fee Halifax is increasing its two- and five-year residential remortgage fixed rates by up to 0.24 percentage points Its new rates and deals will be unveiled on its website tomorrow Nick Mendes at broker John Charcol said: “Halifax and Barclays rate increases are most likely down to managing business and service levels rather than swap rate movement.  “With Santander and NatWest recently repricing this has pushed Halifax and Barclays further up the rankings “Lenders have done well to hold out and not react quickly to recent swap rate increases but the recent repricing from competitors has put some lenders in a difficult position “These recent price adjustments are a minor setback effectively bringing rates back to where they were four to six weeks ago rather than signalling drastic changes.” He added: “The market reacted favourably to yesterday’s inflation data but I don’t expect many lenders to cut their rates quickly they will likely wait for the upcoming Budget to pass before assessing their fixed rates.” NatWest Bank is the latest major lender to raise the cost of borrowing by increasing selected fixed rates by up to 0.3 percentage points Coventry building society and Co-operative Bank last week Swaps – the rates at which banks lend to each other that influence mortgage rates for customers – have been steadily rising in recent days This has caused more lenders to reprice their fixed deals particularly those at the most competitive end of the market The rise in swap rates is being driven by concerns over potential increases in government borrowing it has hiked its five-year fixed mortgage for purchase at 60% loan-to-value from 3.79% to 4.09% Its two-year fixed-rate purchase deal (also at 60% LTV) has increased from 4.07% to 4.37% while its two-year deal at 90% LTV is up from 5.10% to 5.4% Nick Mendes at broker John Charcol said: “These increases mark a sharp reversal from recent months when rates have been falling But it’s important to note that this does not necessarily signal the long-term direction of mortgage rates over the next 12 months.” Skipton building society has launched a second 100% loan-to-value mortgage deal for first-time buyers The Track Record deal is a five-year fixed rate with no product fee and it does not require a guarantor But it is only available to first-time buyers who have not owned a property in the last three years.  While the standard Track Record product has a rate of 5.29% the new cashback Track Record deal has a rate of 5.44% Borrowers must be 21 or over and be able to show evidence of paying monthly rent for at least 12 consecutive months in the past 18 months to be eligible for a Track Record 100% LTV mortgage First-time buyers can take a loan of up to £600,000 with Track Record although the actual loan amount will be based on Skipton’s strict affordability criteria typically based on the monthly rent the applicant has been paying Skipton’s cashback Track Record product launch follows a month when the mutual saw its highest monthly applications for its 100% LTV deal for the year The lender says it processed £9.6 million-worth of applications in September taking the total value of applications since launch (in 2023) to over £130 million TSB has launched a one-year fixed rate deal for existing customers who are coming to the end of a fixed rate deal but who want certainty of rate while maintaining flexibility.  The bank’s one-year residential product transfer deal has no fee and a rate of 5.95% It is available for customers with at least 25% equity in their home.  One-year fixed rates are rare in the market with only a couple of specialist lenders offering this type of deal.  Brokers say it could suit borrowers who are looking to move in the short term but who don’t want to pay SVR (standard variable rate) First-time buyers and homemovers pinning their hopes on a further interest rate cut in November got a boost today as wage inflation has dropped, meaning average salaries are not rising as quickly.  If the Bank of England believes wage inflation is falling and the economy could be slowing to a greater extent than it would like it is seen as more likely to cut the Bank Rate (currently at 5%) when its Monetary Policy Committee next meets on 7 November Santander is withdrawing a range of its fixed rate mortgage deals from 10pm tonight (11 October) and will increase rates by up to 0.22 percentage points from Tuesday (15 October) as the market appears to be shifting its stance on the extent of further interest rate cuts this year It follows similar withdrawals and repricing of fixed rates this week by Coventry building society and Co-operative Bank (see stories below) which are the interbank lending rates lenders use to price their fixed rate mortgages for customers reflecting the market’s belief that interest rates may not be cut as quickly as previously thought.  This has prompted a number of lenders to increase their rates – particularly keenly priced and market-leading deals where margins are smaller Among the deals being removed from its shelves are Santander’s range of five-year fixed rates for residential home purchase which have been particularly competitive.  This includes a deal priced at 3.68 at 60% LTV and a deal priced at 4.15% at 85% LTV – all with a £999 fee Mortgage broker Nick Mendes commented on Santander’s move: “When a lender announces a temporary withdrawal of a mortgage product it generally means they are pausing the offer due to service levels.  “If a mortgage product is too competitive in the market meaning the lender’s offering is more attractive than others which can strain the lender’s ability to process applications efficiently.  “Another significant factor behind product withdrawals is margins and pricing a previously profitable product may no longer make financial sense.” The Bank of England’s rate setting Monetary Policy Committee (MPC) will next meet to vote on interest rates on 7 November It is also cutting rates on selected residential product transfer deals for existing borrowers Barclays is cutting the cost of selected residential fixed-rate deals has also reduced selected residential fixed rates across its range by up to 0.25 percentage points and selected buy-to-let deals by up to 0.71 percentage points it is offering a two-year fixed rate for purchase at 4.4% with an £899 fee for borrowers with at least a 15% cash deposit Its equivalent five-year deal drops to 4.1% For remortgage borrowers the high street bank is offering a five-year fixed rate deal at 3.85% with a £999 fee Barclays has also cut selected product transfer deals for existing customers looking for a new mortgage rate It is offering a two-year fixed rate at 3.9% with an £899 fee (60% LTV) and a five-year fixed rate deal at 3.96% with no fee (75% LTV) Clydesdale Bank’s new rates and deals will be unveiled tomorrow but its lowest five-year fixed rate residential deal will start from 3.89% (60% LTV) TSB has been hit by a £10.9 million fine by the Financial Conduct Authority over its handling of customers in debt arrears TSB had inadequate processes in place to support customers which it said created “a real risk that repayment plans were not realistic” TSB has paid £100 million in redress to the 232,849 mortgage Coventry building society is increasing selected residential fixed rates from Friday (11 October) as experts predict market volatility could push other lenders to follow suit It follows two months of successive price cuts from lenders across the board since the Bank of England cut the Bank Rate from 5.25% to 5% on 1 August The general market consensus had been that Bank Rate was likely to be cut again in November But experts now believe geopolitical tensions such as the conflict in the Middle East could trigger a rise in inflation – and a potential pause in rate cuts.  which is likely to have prompted Coventry’s rate rise the mutual lender had been highly competitive with its fixed rates commented: “A range of factors has unsettled market expectations leading to a rise in gilt yields and swap rates This is likely to start feeding into the mortgage market especially as lenders adjust to the changing conditions He added: “We expect to see some lenders begin to reprice their products particularly among specialist lenders and smaller building societies.  it’s likely that the lower LTV best mortgage deals which are already slim in margins for lenders will start to reprice with slight adjustment upwards with more widespread repricing if competitors do the same.” Coventry is increasing all fixed rates for purchase and remortgage at 65% and 75% loan to value (LTV) Remortgage fixed rates at 80% LTV will also rise in price.  At the same time the building society is removing the £500 cashback offer on its fixed first-time buyer deals between 65% LTV and 80% LTV.  up to 75% LTV are also set to rise from Friday (11 October) Co-operative Bank for Intermediaries is also withdrawing selected fixed rate residential deals from tomorrow (11 October) including some of its most competitively-priced deals three- and five-year fixed rates for purchase and remortgage up to 75% loan to value said: “The mortgage market has seen rates falling in recent months but that may be coming to an abrupt halt.  Fixed rate pricing depends on what the market anticipates may happen to interest rates and uncertainty over the forthcoming budget mixed messages from the Bank of England and global unrest is pushing costs back up for lenders Borrowers may have been lulled into a false sense of security with round after round of rate improvements but this is a reminder that things can change.” Santander and Barclays have become the latest lenders to slash the cost of fixed rate mortgage deals as HSBC unveils lower rates for low-deposit mortgages announced yesterday Halifax has cut selected residential remortgage rates by up to 0.24 percentage points and selected deals for purchase but brokers expect they could challenge the current best buys Halifax has also reduced selected rates on its product transfer range for existing borrowers looking for a new deal Santander has cut selected residential fixed rates by up to 0.29 percentage points for new and existing customers and buy-to-let (BTL) rates by up to 0.17 percentage points for new borrowers and by up to 0.16 percentage points for existing BTL customers The reductions are effective from tomorrow (4 October) and all deals will be available either direct or through brokers Barclays has reduced selected fixed rates across its residential purchase and remortgage ranges It will offer a five-year fixed rate for purchase at 3.92% with no fee for borrowers with at least a 40% cash deposit (60% loan to value mortgage) Barclays is offering a two-year fixed rate deal at 5.32% for borrowers with at least 15% equity in their property (85% LTV) and a five-year fixed rate priced at 4.93% also at 85% LTV HSBC has unveiled its new lower mortgage rates following its announcement of a rate cut yesterday (see stories below).   The bank is now offering some competitive deals at higher loan to value ratios Its five-year fixed rate for purchase for borrowers with a 10% cash deposit is now priced at 4.54% with a £999 fee (90% LTV) The deal also pays £350 cashback on completion The equivalent purchase deal for borrowers with a 20% deposit is now priced at 4.16% HSBC’s cheapest residential remortgage fixed rate is now its five-year fix at 3.83% (60% LTV) First Direct – which is owned by HSBC – is offering a similar deal at 3.79% available direct from the lender and not through brokers.  HSBC is offering a five-year fixed rate for remortgage at under 4% with a 3.99% deal with a £999 fee HSBC is cutting fixed rates across its residential and buy-to-let deals as the market’s price war shows no sign of slowing The high street banking giant – which already offers some of the most competitive deals on the market – has confirmed it will slash the cost of fixed rates from tomorrow (3 October).  Cuts will apply across purchase and remortgage deals as well as on product transfers for existing customers looking for a new fixed rate including those moving home and wanting to borrow more But brokers are expecting the rates to be highly competitive.  David Hollingworth at broker London & Country Mortgages commented: “HSBC already sits pretty high in the tables based on its rates so this latest cut should see that position improved even more.”  Tomorrow will also see the launch of HSBC’s new high value mortgage range for loans worth more than £2 million Deals will come with a £1,999 booking fee and will be available to home movers first-time buyers and remortgage borrowers who have at least a 25% cash deposit or equity in their home (75% loan to value) Virgin Money is cutting selected residential fixed rate deals for purchase and remortgage at higher loan to value ratios is a five-year fixed rate for purchase at 4.49% with a £995 fee for borrowers with a 10% cash deposit (90% LTV) Virgin already offers a market-leading five-year fix for purchase at 90% LTV at 4.43% with a £995 fee whereas its new rate is available directly from the lender The bank is also offering a five-year deal for remortgage for borrowers with 20% equity in their home (80% LTV) at 4.41% MPowered Mortgages has slashed selected fixed rates by up to 0.3 percentage points a three-year fixed rate deal for home purchase at 3.75% with a £999 fee Other fixed rates have been cut for borrowers with deposits of between 20% and 40% has cut selected buy-to-let rates for new and existing customers by up to 0.55 percentage points Among the new rates it has a two-year fixed rate deal for remortgage at 3.59% with a 3% fee available for borrowers with at least 35% equity in their BTL property (65% LTV) Mr Hollingworth said: “Further drops to Bank of England Bank Rate are priced into fixed rates already so we may see the very lowest fixed rates still edging down rather than diving – but at the moment competition is helping to add further improvements.   He added: “Of course if something changes market expectation we know that will quickly feed through to mortgage rates. Inflation figures out next week and the November Bank Rate decision are all factors that could have a bearing on how quickly rates could head lower.” the Monetary Policy Committee (MPC) will next meet to vote on interest rates First Direct has slashed the cost of its fixed-rate deals by up to 0.25 percentage points and is offering a market-leading five-year fix for residential remortgage Its remortgage best-buy deal requires homeowners to have at least 40% equity in their property (60% loan to value mortgage) It has a standard product fee of £490 across its range which is an online and phone bank owned by HSBC only lends directly to borrowers and doesn’t work with brokers Among its other new rates is a five-year fixed rate for purchase or remortgage at 5.09% (95% LTV) a two-year fixed rate for remortgage at 4.09% (60% LTV) and a five-year fixed rate These deals all have the standard £490 fee The moves follow a spate of rate cuts from lenders in recent weeks (see stories below) with the market beginning to price-in a quarter percentage point (0.25%) cut to the Bank of England Bank Rate in November Coventry and Skipton building societies have reduced their fixed-rate deals across their respective residential mortgage ranges with Coventry now offering a market-leading five-year fixed-rate deal for home purchase at 3.69% These latest cuts follow a busy week of reductions from across the market and growing competition in the five-year fixed rate for home purchases sector (see stories below) Earlier in the week Barlcays reduced its five-year purchase fixed rate to 3.71% Nick Mendes at broker John Charcol said: “Lenders appear to be already pricing in an expected cut to the Bank of England Bank Rate in November Coventry’s table-topping mortgage is for borrowers with at least a 35% cash deposit (65% LTV) towards their home purchase It has cut a range of its other residential rates by up to 0.27 percentage points and it has also cut selected offset mortgage deals by up to 0.53 percentage points Its two-year fixed rate offset mortgage for borrowers with at least 25% equity in their property (75% LTV) is cut to 4.88% Track Record has been cut by 0.15 percentage points to 5.29% Skipton has also cut its exclusive first-time buyer five-year fixed rate deal for borrowers with a 10% deposit (90% LTV) to 4.89% (down from 5.25%) Its fee-free two-year residential purchase rate at 90% LTV is cut to 5.34% (down from 5.46%) Virgin Money has slashed selected fixed-rate deals for new customers by up to 0.15 percentage points and is offering a market-leading five-year fixed rate at 4.99% for home buyers with just a 5% cash deposit which will appeal to cash-strapped first-time buyers has no arrangement fee and is available through brokers from tomorrow (27 September) Previously the best-buy five-year fixed rate for residential home purchase at 95% loan to value was at 5.01% with a £999 fee Virgin’s is also offering a five-year fixed-rate remortgage deal at 3.96% with a £995 fee (60% LTV) which will become part of Nationwide building society later this year has cut selected fixed rate deals for existing customers looking for a new rate (product transfer deals) as well as buy-to-let rates for new customers It has a five-year fixed rate for buy-to-let remortgage at 4.16% with a £2,195 fee for landlords with at least 25% equity in their BTL property Yorkshire building society has slashed the rate on its flagship deal for first-time buyers which only requires a £5,000 cash deposit on loans up to £500,000 The five-year fixed-rate £5,000 deposit deal has no arrangement fee who can use it to purchase a property worth up to £500,000 which effectively means FTBs can potentially borrow up to 99% loan to value It comes as a number of lenders have cut rates and altered lending criteria as a way to enable more first-time buyers to get onto the property ladder Halifax has cut selected fixed rates for home purchase The rate reductions will impact new build and affordable housing deals as well as larger mortgage loans (£2 million or more) both Halifax and Nationwide building society have increased the income-to-mortgage loan ratio they’ll accept for first-time buyers for FTBs taking a five or 10-year fixed rate deal also with specific criteria attached (see stories below) While it is important buyers don’t financially over-extend themselves to get on the property ladder brokers say increased choice and flexibility from lenders is welcome Nick Mendes at broker John Charcol said: “Lenders are driving competition through rate reductions and innovative products which will likely stimulate more activity among first-time buyers particularly those who have been waiting for the right opportunity “While it may take until next year to fully understand the long-term impact of higher income multiples on property prices Proactive support from lenders for first-time buyers is crucial in driving market activity.  we can expect a rise in first-time buyer enquiries as they seek to secure favourable deals before property prices potentially accelerate further.” chief executive at broker SPF Private Clients said: “Higher LTV products are typically taken on a repayment basis which also protects borrowers as they will be chipping away at the original debt take Nationwide’s five-year Helping Hand product pegged at 4.99% – say you borrowed £380,000 on a £400,000 property with 25-year term this gives you 95% LTV on completion but after five years this will be reduced to approximately 85% LTV the debt erosion (without allowing for any house price inflation or additional overpayments) means a 90% LTV is possible after five years.” Barclays has cut the cost of selected residential fixed rate deals for new customers by as much as 0.34 percentage points and is now offering a market-leading five-year fix for purchasers at 3.71% It comes a day after Nationwide building society slashed its fixed rates to offer a similar purchase deal at 3.74% (see stories below) But where Nationwide’s deal has a £1,499 fee and is only available on loans of £300,000 or more Barclays’ deal has a lower £899 fee and is available on loans from as little as £5,000 Homebuyers require a 40% cash deposit for both deals Barclays Premier banking customers can get a preferential rate of 3.70% on the equivalent mortgage deal for purchase all of which are effective from tomorrow (25 September) were on its purchase deals for its Premier banking customers and on its green mortgage range for energy efficient homes with an energy performance rating of A or B) it is offering a five-year fixed rate deal at 4.60% with a £999 fee for Barclays Premier bank customers who have a 10% cash deposit towards their purchase (a 90% loan to value deal) This is likely to appeal to first-time buyers Barclays also has a two-year fix for purchase on a green mortgage at 4.33% but borrowers need a 40% cash deposit (60% LTV) The market has seen an increased focus on first-time buyers with lenders improving deals and terms designed to provide a boost onto the property ladder Nationwide building society confirmed that it will now lend up to six times’ household income for first time buyers even for those with only a 5% cash deposit towards their purchase And earlier this month Halifax lowered its minimum household income requirement to borrow 5.5 times’ income on a mortgage loan from £75,000 to £50,000 borrowers will need a minimum 10% cash deposit to be eligible (see stories below) MPowered Mortgages has cut selected fixed rate deals by up to 0.1 percentage points across all loan to value ratios up to 80% LTV It is offering a three-year fix for home purchase at 3.91% with a £999 fee for borrowers with a 40% deposit chief executive of mortgage broker SPF Private Clients said: “No sooner does one lender offer a sub-3.75% five-year fix with Barclays launching a market-leading 3.71% The clear direction of traffic for mortgage rates is downwards with lenders gently easing pricing as they compete for business “We don’t expect any dramatic reductions going forward but nevertheless subtle improvements in rates will make life easier for borrowers.” Nationwide building society has cut selected residential fixed-rate mortgage deals by up to 0.31 percentage points and is offering a five-year fixed-rate deal for new customers at a market-leading 3.74% While the rate is among the lowest available over five-years it is only for home purchase for borrowers with at least a 40% cash deposit and only for those borrowing at least £300,000 There is also a steep mortgage arrangement fee of £1,499 Nationwide’s equivalent five-year fixed rate for remortgage (for borrowers with at least 40% equity in their property) has fallen to 3.79% and only for mortgage loans of at least £300,000 NatWest is offering the next-best deal in this category at 3.77% with a £1,495 fee (also 60% LTV) but with no minimum loan requirement.  The bank has also slashed selected fixed rates for new customers although its 3.77% deal was not reduced further.  The bank cut its two-year fixed rate for purchase to 4.02% (60% LTV) with a £1,495 fee among other reductions for buyers and remortgage customers has lowered its fixed rates by up to 0.55 percentage points across its residential range It includes a significant cut to its £5k Deposit Mortgage aimed at first-time buyers with a small deposit which launched in March to enable first-time buyers with just a £5,000 deposit to purchase a property valued up to £500,000 is reduced by 0.45 percentage points to 5.79% It is the second cut to this product’s rate in the last month Accord is offering a five-year fixed rate for home purchase at 3.99% with a £1,995 fee for borrowers with at least a 25% cash deposit (75% LTV) The deal has a free valuation and £250 cashback on completion There is also a two-year fixed rate deal for the purchase of a new build property at 5.33% with a £995 fee for borrowers with a 10% cash deposit (90% LTV) Mortgage brokers have welcomed the rate reductions following last week’s freeze in interest rates by the Bank of England The Bank chose to keep the benchmark Bank Rate at 5% The next interest rate decision isn’t until 7 November Among the other highlights of Nationwide’s rate cut include a five-year fixed rate for home buyers with just a 5% deposit (95% LTV) at 4.99% It is the first 95% LTV deal in the market at under 5% in at least six months.   The equivalent deal for buyers with a 10% deposit (90% LTV) is at 4.49% At the same time Nationwide has lowered the cost of its product transfer deals for existing customers looking for a new fixed rate and increased its maximum income to loan ratio offer through its Helping Hand initiative for first-time buyers Nationwide will now lend up to six times household income for buyers taking a five- or 10-year fixed rate deal up to 95% loan to value This is up from a previous maximum of 4.5 times income It means a couple with a total income of £50,000 per year could borrow up to £300,000 Nationwide has also upped its maximum loan size to £750,000 for borrowers with only a 5% deposit (up to 95% LTV) Previously the maximum loan size at this loan to value ratio was £500,000 Nick Mendes at broker John Charcol said: “Nationwide’s latest initiative is a game-changer for first-time buyers delivering a powerful boost to help more people step onto the property ladder This increased borrowing power can make all the difference for aspiring homeowners especially in a challenging market where property prices often feel out of reach.  “By providing this additional financial flexibility Nationwide is turning dreams of homeownership into reality for thousands of people who may have previously struggled to afford their first home.” the buy-to-let (BTL) arm of Yorkshire building society as eyes turn to the Bank of England decision on interest rates due at lunchtime tomorrow Halifax has cut selected fixed rate deals for purchase and home movers by 0.09 percentage points New rates and deals will be unveiled online tomorrow Virgin Money has also reduced selected fixed rates across its residential and buy-to-let ranges by up to 0.2 percentage points Among its new deals is a residential purchase rate at 5.03% with no fee Virgin is also offering a five-year fixed rate for buy-to-let purchase or remortgage at 3.80% with a 3% fee Accord Mortgages has lowered selected BTL deals for purchase and remortgage by up to 0.3 percentage points The mutual has a two-year fixed rate for BTL purchase at 5.09% with a £3,495 fee (80% LTV) and a five-year deal for BTL remortgage at 4.14% with a £995 fee (also 60% LTV) The Bank of England’s Monetary Policy Committee (MPC) will reveal its next decision on the Bank Rate Bank Rate was cut from 5.25% to 5% on 1 August but experts predict there won’t be another cut tomorrow and instead think the next reduction is likely to come in November Nick Mendes, at broker John Charcol, said: “Despite today’s inflation news [prices rose at 2.2% in the year to August which all but confirms the expected Bank Rate hold decision tomorrow “Recent changes in mortgage pricing have been driven by financial markets and lenders’ competitive nature This stability began to take shape after the general election announcement the decline in inflation towards the 2% target and the initial reduction in the Bank Rate (from 5.25% to 5% in August) indicating a shift in MPC voting behaviour.  which lenders use to hedge against interest rate changes This has boosted lenders’ confidence enabling them to reduce pricing quickly and narrow margins to stay competitive without the risk of being caught out by sudden market shifts.” Santander has cut selected residential fixed rate deals for new and existing customers by up to 0.29 percentage points It is offering a five-year fixed rate for home purchase at 3.80% with a £999 fee for borrowers with at least a 40% deposit (60% loan to value mortgage) The two-year equivalent deal is available at 3.99% The current market-leading deal for home purchase is 3.77% with a £1,495 fee Santander has also cut selected deals for existing residential borrowers and it has nudged down buy-to-let fixed rates by up to 0.09 percentage points First Direct has lowered the cost of its fixed rate deals for residential mortgage borrowing by up to 0.35 percentage points with immediate effect The online bank’s new deals – which are only available direct bank and not through brokers – include a five-year fix for home purchase priced at 3.83% with a £490 product fee. Borrowers need at least a 40% deposit to be eligible (60% LTV).  These latest rate cut announcements come as the market prepares for the Bank of England’s next interest rate decision due at 12 noon on Thursday (19 September).  The Bank Rate is currently at 5% after it was cut by the central bank from 5.25% on 1 August A further cut would be welcomed by borrowers particularly those coming to the end of fixed rate deals in the coming months First Direct is also offering a two-year fixed rate for remortgage at 4.27% and a five-year remortgage deal at 3.94% Both rates require 40% equity in the property (60% LTV) and charge the lender’s standard £490 product fee Two-year fixed rates for purchase are now available at 4.64% for borrowers with a 20% deposit (80% LTV) with a £490 fee or 4.2% over five-years (same loan to value and fee) The online bank has also cut selected deals for existing customers which is slashed by 0.75 percentage points to a new starting pay rate of 5.49% (60% LTV) which tracks the Bank of England Bank Rate (now at 0.49 percentage points above Bank Rate) charges the lender’s standard £490 fee Track Record is a fee-free five-year fixed rate for first-time buyers with no deposit but who can show they have paid rent for 12 months consecutively Skipton’s 80% LTV deals include a two-year fixed rate for purchase at 4.35% with a £2,995 fee and a fee-free two-year fixed rate for remortgage at 5.28% NatWest has trimmed the cost of selected fixed rates mortgages at higher loan to value (LTV) ratios giving first-time buyers and those with smaller deposits a bite of the cherry NatWest has reduced rates on a range of two-year fixed rate deals for residential purchase – popular with first-time buyers – and remortgage deals at higher LTVs It is offering a two-year fix at 5.2% for borrowers with a 10% cash deposit (90% LTV) for a £995 fee For buyers with a 5% cash deposit (95% LTV) there is a two-year fixed rate at 5.8% Selected first-time buyer deals come with no fees and £250 cashback on completion The high street bank has also cut selected remortgage rates including a two-year deal at 90% LTV on offer at 5.65% with a £995 fee A fee-free equivalent is available at 5.99% NatWest is offering a remortgage deal at 5.09% (90% LTV) with a  fee-free equivalent deal at 5.19%.  Competitor banking giant HSBC also confirmed the new rate on its 5-year fixed deal for residential purchase at 3.82% which the lender gave notice of yesterday (see story below) is not enough to beat NatWest’s market leader priced at 3.77% over the same term.  Both deals require a 40% deposit and charge fees of £999 and £1,495 respectively They are the latest in a continued wave of cuts although market experts remain divided on whether interest rates will be reduced next week (19 September) when the Bank of England’s Monetary Policy Committee meets A Reuters poll published today found that 100% of the 65 economists surveyed thought that interest rates would be held at 5% in September Nearly 80% (49 of the 65) expected one more cut this year with almost of these (48) saying this would be in November and just one predicting in December There is no interest rate decision in October and MPowered Mortgages are among a cohort of lenders reducing the cost of their fixed rate deals The Bank of England Bank Rate stands at 5% TSB has cut fixed rates by as much as 0.35 percentage points bringing its five-year fixed rate for purchase as low as 3.79% with a £995 fee (60% LTV) It draws close to the market-leader in this category which is NatWest offering a five-year fixed rate for purchase at 3.77% with a £1,495 fee at 60% LTV all effective from tomorrow (13 September) The bank has a two-year residential purchase deal for borrowers with at least a 20% deposit (80% LTV) at 4.58% with an £895 fee HSBC has announced reductions across its fixed rate range when the new rates and deals will be unveiled The high street lender already offers five-year fixed rates for residential purchase and remortgage at below 4% but this latest move could challenge the best-buys Yorkshire building society has cut rates by up to 0.55 percentage points across a range of deals with immediate effect marking the mutual lender’s second rate cut in three weeks.  Among the highlights is a five-year fixed rate deal for remortgage priced at 3.99% for borrowers with at least 25% equity in their home (75% LTV) Yorkshire has also cut two-year rates for purchase and remortgage It is offering a two-year fix for remortgage at 4.24% (60% LTV) with a £1,495 fee and a two-year fix for home purchase at 5.19% for buyers with a 10% deposit MPowered Mortgages has cut selected fixed rates for residential purchase and remortgage by up to 0.27 percentage points effective from tomorrow (13 September).  is offering a five-year fixed rate deal for purchase at 3.87% with a £999 fee Borrowers need at least a 40% (60% LTV) cash deposit to be eligible Three-year deals for purchase now start from 3.99% with a £999 fee (60% LTV)  or 4.17% with no fee are dropped to 4.24% with a £999 fee or 4.44% with no fee chief executive at MPowered Mortgages commented: “We are delighted to be now offering sub-4% rates across three and five-year deals.  “With lenders cutting rates literally daily bringing welcome relief to homeowners who are due to remortgage.” Find out the monthly cost of a mortgage across a range of interest rates with our mortgage calculator Halifax has unveiled details of the new lower rates it announced yesterday (see story below) on a range of broker deals available to both first-time buyers and home movers While the bank’s keenest residential fixed rates (at 60% loan to value) have not been reduced Halifax is now offering a five-year fixed rate for home purchase at 4.64% (down from 4.79%) for borrowers with just a 10% cash deposit (90% LTV) While the rate is competitive and will appeal to first-time buyers it’s not enough to beat the current best-buy at 90% LTV on offer from Virgin Money at 4.54% which carries the same £999 fee Over two years Halifax is offering a deal for purchase priced at 5.13% (also 90% LTV) with a £999 fee The best buy is also available from Virgin Money at 5.09% with a £995 fee Smaller and specialist lenders have also continued to chip away at fixed rate costs today across both residential and buy-to-let sectors Co-operative Bank for Intermediaries announced reductions to residential fixed rates for new and existing customers The lender will cut two and five-year fixed rates for borrowers with at least 40% deposit or equity in their home (60% LTV).  The bank is currently offering a two-year rate at 4.34% and a five-year rate at 3.99% for residential purchase and remortgage for new customers at 60% LTV The new rates will be unveiled and available for borrowers on Friday has nudged down the cost of selected product transfer deals for existing buy-to-let customers.  The rate cut of 0.05 percentage points takes the lender’s best two-year fixed rate down to 3.79% with a 3% fee (65% LTV) The equivalent three-year and five-year rates now start from 3.84%.   The new rates will be unveiled and live tomorrow (12 September) has lowered the rates on selected deals by up to 0.25 percentage points Five-year fixed rates for standard BTL borrowing now start from 4.04% with a 5.5% fee (65% LTV) Halifax has cut selected two and five-year fixed rates for home purchase as it fights to stay at the top of the best buy tables in an increasingly competitive market The high street lending giant will unveil new lower rates across a range of loan to value (LTVs) ratios from tomorrow morning (11 September).  Halifax is currently offering the market-leading two-year fixed rate for home purchase priced at 4.12% with a £999 fee for buyers and home movers with a least 40% deposit (60% LTV) But over five-years NatWest is offering the best fixed rate deal for home purchase at 3.77% with a £1,495 fee (also at 60% LTV) Halifax’s equivalent deal is currently at 3.81% with a £999 fee commented: This latest move from Halifax is a further encouraging sign for the market We can still expect lenders to make some modest reductions ahead of next week’s Bank of England Bank Rate announcement.  I anticipate another 0.25% decrease to Bank Rate in September which should spur further pricing adjustments The last reduction caught some market sectors off guard leading to frantic repricing the following day which in turn encouraged lenders to reduce rates further.” Gen H has bucked the trend for rate cuts by announcing a rate rise of up to 0.29 percentage points across selected fixed rate deals from tomorrow (11 September) The lender says it is increasing fixed rate costs as a way of controlling demand Barclays and TSB have become the latest in a string of major lenders to cut mortgage costs as new data reveals that fixed rates over two and five-years are at their lowest level since spring Barclays has trimmed the cost of selected fixed rates for new and existing borrowers including for buy-to-let (BTL) The bank has cut its two and five-year BTL purchase deals to 5.28% and 4.32% respectively Both deals charge a £1,295 product fee and require a 25% cash deposit Barclays is offering a two-year fee-free deal at 5.4% and a five-year equivalent deal at 4.52% Barclays has also reduced rates on its larger loans range for residential mortgages of between £2 million and £10 million TSB has reduced rates across its residential and buy-to-let deals by up to 0.4 percentage points also effective from tomorrow (10 September) Fee-free two-year shared ownership deals currently start from 5.19% The lender’s five-year fixed rates for residential remortgage currently starting at 4.34% with a £995 fee are also reduced by 0.3 percentage points.  The lender’s two and five-year fixed rate BTL remortgage deals have been cut for borrowers with at least 20% to 25% equity in their property The latest cuts come as data from Moneyfacts shows the average residential two-year fixed rate was cut by 0.21 percentage points in the past month alone Five-year rates were cut by 0.18 percentage points Two-year fixes are now at their lowest level since February with rates averaging 5.56% Jonathan Bone, lead mortgage advisor at online mortgage broker Better commented: “The recent drop in fixed mortgage rates is encouraging especially for first-time buyers who have been waiting for a more favourable market.  With rates at their lowest levels since early 2024 now could be a good time to explore your options.”  he added that it’s ‘essential’ to remain cautious and prepared: “First-time buyers should focus on improving their credit score and saving as much as possible for a deposit as the availability of certain deals has tightened.” Coventry building society and MPowered Mortgages are the latest lenders to reduce the cost of fixed-rate deals as competition in the market shows no signs of slowing Mutual lender Coventry has cut selected fixed rates for residential borrowers by up to 0.19 percentage points as well as lowering rates for BTL customers by up to 0.45 percentage points effective today MPowered Mortgages has reduced rates across its range by up to 0.5 percentage points It follows chunky rate cuts by major lenders over the past week (see stories below) with markets expecting interest rates to fall further before the end of the year The Bank of England’s next decision on its key Bank Rate (currently at 5% reduced from 5.25% in August) is on 19 September Coventry has reduced rates on all its fixed-rate residential deals at 75% loan-to-value (LTV) It is offering a two-year fixed rate for purchase at 5.15% with a £999 fee for borrowers with a 10% cash deposit (90% LTV) Coventry is offering a five-year fixed rate for remortgage at 4.52% with a £1,999 fee at 75% LTV will be available to view on its website from tomorrow The Bank of England’s upcoming decision is likely to be influenced by the decision of the US Federal Reserve on its interest rates on 18 September Worse-than-expected jobs data in the US, out today, has prompted experts to predict the Fed could cut US interest rates by half a percentage point from the current range of 5.25-5.5% head of fixed interest research at Quilter Cheviot said: “Today’s US jobs data is expected to determine the size and pace of the highly anticipated Federal Reserve rate cuts We will no doubt see increased speculation that the Fed will take decisive action with a 50 basis points cut on 18 September “Markets have been pricing in significant cuts before the end of the year and today’s labour market data could exacerbate this further this data release has proven notably weaker than had been hoped suggesting the economy may be weakening more than is consistent with the Fed’s aim of a soft landing.” Santander has cut the cost of selected fixed rates for new customers by up to 0.27 percentage points apply across the bank’s residential and buy-to-let (BTL) ranges and include cuts to the cost of deals for new-build homes and larger mortgage loans of £2 million and over the bank’s product transfer deals have been slashed by up to 0.32 percentage points while buy-to-let fixed rates will decrease by up to 0.23 percentage points Santander will unveil details of its new rates tomorrow Virgin Money has cut the cost of its residential and BLT ‘fix and switch’ product ranges which offer a five-year fixed rate with the option to switch away penalty-free after two years Among the new deals Virgin is offering a five-year residential ‘fix and switch’ at 4.93% with no fee up to 80% LTV and an equivalent deal at 5.44% at 90% LTV Leeds building society has lowered selected residential mortgage deals by up to 0.16 percentage points and selected BTL deals by up to 0.2 percentage points Other smaller mutual lenders including Suffolk building society and Market Harborough building society have also announced fixed rate mortgage price cuts Bank of Ireland has cut selected fixed rates at between 75% loan to value (LTV) ratios up to 90% LTV The lender is offering a two-year fixed rate deal at 4.93% with a £1,495 fee for borrowers with at least a 20% deposit Yorkshire building society has increased the loan to value ratio it will lend to for purchasers of new-build homes from 85% up to 90% LTV The mutual lender has also lowered the minimum household income requirement for borrowing of up to five times’ income Borrowers will require at least a 10% cash deposit Last week Halifax and Lloyds Bank (who are part of the same banking group) also lowered their minimum household income requirement to borrow 5.5 times’ income on a mortgage loan from £75,000 to £50,000 Borrowers need a minimum 10% cash deposit to be eligible (see stories below) HSBC and NatWest are the latest lenders to cut the cost of their fixed-rate mortgage deals as competition in the market shows no sign of cooling NatWest was first out the gates announcing rate cuts of up to 0.19 percentage points across its range including a five-year fixed rate for home purchase at 3.77% (previously at 3.89%) This market-leading deal is available to buyers with a 40% cash deposit and has a £1,499 fee The bank has cut other selected two- and five-year residential fixed rates for purchase and remortgage It is offering a two-year fee-free fixed rate for remortgage at 4.65% (60% LTV) and a five-year remortgage deal at 3.92% with a £1,495 fee (60% LTV) Barclays has cut selected two and five-year fixed residential rates The cuts are predominantly focused on higher loan to value ratio deals.  It is offering a fee-free two-year fixed rate for purchase at 4.75% for borrowers with a 15% cash deposit (85% LTV) and a five-year deal for remortgage at 4.07% (75% LTV) with a £999 fee The bank has also reduced selected deals for existing customers looking for a new fixed rate Highlights include a five-year fixed rate at 3.88% with a £999 fee (60% LTV) HSBC has also lowered the cost of residential and buy-to-let fixed rate deals across its range by up to 0.35 percentage points will be unveiled tomorrow and are expected to be highly competitive Among the highlights is a two-year fixed rate for remortgage at 4.34% with a £999 fee (60% LTV) and a five-year remortgage rate at 4.17% at 75% LTV The bank’s lowest rate is still its 60% LTV five-year residential purchase mortgage at 3.84% (this was unchanged in the latest round of cuts) but HSBC is now also offering a purchase rate of 3.99% at 75% LTV competition among lenders had shown signs of easing slightly as they looked to manage their pipelines and strike a balance between winning business and maintaining service levels But Monday started off positively with HSBC and Barclays all announcing rate reductions decreasing its purchase deals to a table-topping 3.77% “The Bank of England is likely to hold rates later this month even as the Federal Reserve is expected to make a reduction With inflation expected to remain slightly above their comfort level the monetary policy committee will likely adopt a wait-and-see approach recognising that the impact of the previous reduction on inflation will not be immediate.  “While rates are projected to fall later this year to around 4.75% a more significant reduction to 4% may not occur until 2025.” TSB has cut selected mortgage rates for new customers by up to 0.45 percentage points The lender is hot on the heels of a string of other major lenders to reduce costs this week The lender has reduced two- and three-year residential remortgage fixed rates and also cut selected buy-to-let fixed rates by up to 0.15 percentage points.  At the same time it has reduced a range of its residential product transfer fixed rate deals All new rates and deals will be live on TSB’s website and available through brokers from tomorrow (30 August) has cut selected two and five-year fixed rate deals by up to 0.46 percentage points The lender is offering a five-year fixed rate for remortgage for borrowers with at least 35% equity in their property (65% LTV).  the specialist lender who can help non-standard borrowers (such as those with bad credit or irregular income) has relaunched its residential loan range and slashed the cost of deals by up to 1.05 percentage points.  Five-year residential fixed rates up to 75% loan to value start from 5.19% with a 1% fee Precise has also cut BTL fixed rates by up to 0.25 percentage points.  have launched a new ‘first-time buyer boost’ which allows buyers with lower household incomes and smaller deposits to borrow up to 5.5 times gross annual income To qualify for the maximum income multiple borrowers need to apply for a first-time buyer mortgage with Lloyds or Halifax have a total household income of at least £50,000 plus a cash deposit of at least 10% of the purchase price (90% loan to value) Previously the banks would only lend 5.5 times income when households earned a gross £75,000 and only up to a maximum of 75% of the property value Broker Nick Mendes at John Charcol said: “Halifax’s lower income threshold of £50,000 along with its competitive criteria and rates demonstrates how lenders are continually adapting to attract borrowers making it a strong choice for many first-time buyers.” The ‘boost’ offer isn’t available on shared ownership or shared equity mortgage loans Virgin Money has cut selected fixed rate deals by up to 0.28 percentage points MPowered Mortgages has also reduced a range of its fixed rate mortgage deals It marks its fourth rate cut this month and takes the lenders total reductions in August to 0.36 percentage points Competition in the fixed rate mortgage market has intensified over the past week as lenders have made significant cuts to the cost of borrowing including pushing five-year fixed rates under 4% for the first time in at least six months (see stories below) Virgin’s latest cuts predominantly effect purchase deals It is offering a two-year fixed rate at 4.74% with a £999 fee for borrowers with a 15% cash deposit (85% LTV) and a five-year purchase deal at 4.32% with a £999 fee at 80% LTV Other highlights include a five-year deal for purchase at 5.14% for borrowers with just a 5% deposit (95% LTV) This deal has no product fee and includes £300 cashback on completion The lender has also cut some selected buy-to-let (BTL) rates by up to 0.14 percentage points and BTL and residential product transfer deals by up to 0.15 percentage points The lender is offering a five-year fixed BTL deal for purchase (60% LTV) at 3.88% with a 3% fee MPowered Mortgages has focused its reductions on a number of core residential borrowing deals for two three and five-year fixed rates between 60% loan to value and 80% LTV is a two-year fixed rate for purchase at 4.57% with a £999 fee and a fee-free five-year fixed rate for remortgage at 4.30% However, despite continued cuts to fixed rates across the market, experts predict the Bank of England’s Monetary Policy Committee won’t reduce interest rates at its next meeting on 19 September having cut Bank Rate from 5.25% to 5% on 1 August.  This is largely due to a small rise in inflation this month which was recorded at 2.2% in the year to July chief executive at MPowered Mortgages said: “Looking ahead we don’t expect any significant changes in mortgage rates in the short term given that a September cut in the Bank of England Bank Rate now seems unlikely and future potential cuts are already priced in.” Yorkshire building society has cut selected fixed rate deals by up to 0.2 percentage points following the lead of other major lenders who have slashed rates this week Halifax for Intermediaries has also reduced the cost of selected residential remortgage deals The new rates include a five-year fixed rate at 4.02% and a two-year equivalent deal at 4.37% Both deals have a £999 product fee and require borrowers to have 40% equity in their home (60% loan to value) Among Yorkshire’s reductions is a cut to the cost of its £5,000 deposit mortgage for first-time buyers from 6.39% to 6.24% The five-year fixed rate deal has no fee and is available for FTB buying a property worth up to £500,000 with a minimum £5,000 cash deposit Other highlights include a two-year fixed rate for remortgage at 4.39% with a £1,495 fee for homeowners with 25% equity in their property An equivalent three-year deal is available at 4.34% (also 75% LTV) There is also a five-year fixed rate for home purchase for buyers with a 10% cash deposit at 5.24% There is no product fee and buyers will get £2,000 back on completion has cut residential fixed rates by up to 0.35 percentage points It has a five-year fixed rate for home purchase at 4.3% with a £1,999 fee available to borrowers with at least a 25% cash deposit plus a a three-year purchase deal at 4.92% with a £999 fee for borrowers with at 20% deposit Leeds building society has reduced fixed rates for new and existing customers by up to 0.35 percentage points Among the highlights is a five-year fixed rate deal for residential purchase or remortgage at 4.09% for new customers with at least a 25% deposit or equity (75% LTV) Furness building society has cut residential and BTL fixed rates by up to 0.35 percentage points It is offering a five-year fix for residential purchase and remortgage at 4.54% with a £999 fee (80% LTV) and a two-year deal at 5.99% at 95% LTV Nationwide building society has announced further reductions to its fixed rate mortgages to offer a market-leading five-year fixed rate priced at 3.78% has a £1,499 fee and is only available to home buyers with a 40% cash deposit (60% loan to value) who are borrowing a minimum loan amount of £300,000 It marks a reduction of 0.26 percentage points on its previous equivalent deal Brokers are waiting to find out if lenders – in particular Barclays HSBC and NatWest – respond by also reducing fixed rates further The high street lenders have been battling it out at the top of the five-year fixed rate best buy tables for the past week Nationwide has also reduced remortgage rates to offer the first sub-4% deal since February this year The five-year fix at 3.99% (60% LTV) comes with a £999 fee and is market-leading lenders have been targeting home movers with sub-4% rates but competition among the ‘big six’ lenders is driving rates lower and now those remortgaging are also seeing the benefit we could see a 3.5% five-year fix by Christmas which will be a massive psychological boost for the market.” Among its other new deals Nationwide is offering a two-year fixed rate for purchase at 4.15% with a £999 fee at 60% LTV There is also a five-year rate at 4.09% for house purchase Nationwide has cut product transfer deals for existing customers by up to 0.25 percentage points and deals for existing customers looking to move home by up to 0.26 percentage points broker at John Charcol commented: “Nationwide has pulled out all the stops with their latest rate cuts making a bold statement in the mortgage market by slashing rates This positions them as a strong competitor particularly with their lowest rate now at an impressive 3.78%.  “Whether you’re a new or existing customer Nationwide is offering competitive rates across the board.” Earlier in the day HSBC unveiled its latest fixed rate mortgage deals after announcing rate cuts yesterday (see stories below) The lender is offering a five-year fixed rate for residential purchase priced at 3.81% with a £1,499 fee the deal is only available to HSBC Premier banking customers who have at least a 40% deposit (60% LTV) The bank’s equivalent five-year fixed rate for purchase But this is now trumped by Nationwide’s five-year fix at 3.83% with a £999 fee NatWest is offering a deal for home purchase at 3.83% with a £1,495 fee which will come into effect from tomorrow (22 August) Among the new deals is a five-year fixed rate for remortgage at 4% with a £1,495 fee (60% LTV) and a fee-free two-year fixed rate for remortgage at 4.75% (60% LTV) with £250 cashback on completion.  But at the same time the bank has increased the cost of selected deals across higher loan to value ratios its two-year fixed rate for home purchase at 90% LTV has been pushed up from 5.23% to 5.35% The bank’s five-year fee-free fixed rate for remortgage HSBC and TSB have all announced fixed rate cuts as competition in the mortgage market intensifies HSBC said it will make rate cuts across a broad range of fixed rate deals The extent of the reductions as well as the new deals will be unveiled tomorrow when they will also take effect but brokers expect them to be highly competitive HSBC is already offering a five-year fixed rate for home purchase at 3.95% with a £999 fee at 60% LTV both Nationwide building society and NatWest have cut their equivalent deals to 3.83% (see stories below) which may have prompted this latest repricing by HSBC to move closer to the best buys a mortgage broker at John Charcol said: “HSBC’s recent repricing move comes as no surprise following similar actions from other major high street lenders Given the competitive nature of the mortgage market it was only a matter of time before HSBC adjusted its rates in response to the broader market trends “This move is strategically aligned with the bank’s efforts to remain competitive and potentially position itself as a new best-buy.” TSB has made further rate cuts of up to 0.25 percentage points across its residential borrowing range It follows its announcement of cuts across standard residential mortgages available through brokers of up to 0.2 percentage points But while many lenders are battling for the lowest rates in the 60% loan to value ratio bracket TSB has focused its efforts in being more competitive at higher LTVs.  its five-year fixed rate for first-time buyers and home movers with a 20% cash deposit is currently at 5.04% with a £995 fee But this could fall to 4.79% if the deal receives the full 0.25 percentage point cut tomorrow TSB will unveil its latest rates and deals online tomorrow (21 August).  Barclays has cut selected residential fixed rate deals by up to 0.15 percentage points for existing borrowers with at least a 15% equity (85% loan to value) It is offering a product transfer five-year fixed rate deal at 4.79% with a £999 fee has cut selected buy-to-let fixed rates by up to 0.1 percentage points effective from 21 August It is offering a one-year fixed rate for standard BTL purchase or remortgage at 3.49% with a 2% fee for landlords with at least 25% equity in their investment property (75% LTV) It also has a five-year fixed rate at 4.29% (also at 75% LTV) with a £1,495 fee or a two-year equivalent deal at 4.64% NatWest has reduced the rate on its five-year fixed rate for home purchase from 3.89% to 3.83% to rival the same market-leading deal offered by Nationwide Building Society Both deals are available to home buyers and movers with at least a 40% deposit But NatWest’s offering must be applied for and managed exclusively through the lender’s website and is not available through mortgage brokers It comes with a £1,495 arrangement fee.  Nationwide’s 3.83% five-year fixed rate for home purchase has a £1,499 fee and minimum lending requirement of £300,000 It is available both direct and through brokers TSB has cut the cost of its fixed rate deals by up to 0.35 percentage points on its affordable housing mortgage ranges and by up to 0.2 percentage points across residential purchase and remortgage deals The bank is offering a five-year fixed rate for remortgage at 4.89% (with a 25% deposit) with a £995 fee and a two-year equivalent deal at 5.34% TSB’s three-year fixed remortgage rates now start at 4.58% with a £999 fee or 4.78% with no fee (both deals at 60% LTV) Virgin Money has lowered selected buy-to-let fixed rates It is offering a five-year fixed rate for BTL remortgage at 4.31% for borrowers with at least 40% deposit (60% LTV) with a £2,195 fee The bank is also offering a similar five-year fix for BTL purchase or remortgage The lender has also cut BTL product transfer rates for existing customers looking for a new deal Five-year fixed rate deals with a £995 fee (at 60% LTV) start from 4.17% Halifax has cut its product transfer rates for existing customers will be unveiled and effective from 20 August are the latest lenders to cut fixed rate deals as the latest housing market and inflation data reveals an increasingly positive outlook the lender is offering a five-year fixed rate for home purchase at 4.01% with a £999 fee for borrowers with at least a 40% cash deposit The lender’s two-year fixed rates for remortgage start from 4.6% with a £999 fee (at 60% LTV) It has also cut its standard variable rate the rate all customers revert to after their fixed rate period ends unless they switch to a new deal Clydesdale Bank has cut selected two and five-year fixed rates It is offering five-year fixed rate deals for home purchase from 4.11% with a £999 fee (65% LTV) Broker exclusive remortgage deals start from 4.37% for a five-year fixed rate The reductions are the latest of several made by major lenders in the past few days and weeks as signs point towards a stabilising market Data published today by the Office for National Statistics (ONS) showed that annual inflation in July climbed less than many expected to 2.2% (from its target 2% in June) while house prices rose by 2.7% – the fourth consecutive annual rise The Bank of England cut interest rates on 1 August from 5.25% down to 5% Peter Stimson at MPowered Mortgages commented: “The current lending environment is nothing short of cut-throat Competition between lenders is the most intense I have seen in the last 30 years.” Nationwide building society has trimmed the cost of its fixed rate mortgage deals by up to 0.2 percentage points creating a new five-year fixed deal for home movers priced at leading 3.83% available from tomorrow (Wednesday,14 August) and five-year fixed rates for residential borrowing It follows significant rate cuts by major lenders in recent days first direct and Virgin Money (see stories below).  the lowest five-year rate for home purchase had been cut to 3.84% (or 3.83% for Premier current account customers) for borrowers with at least a 40% cash deposit for a £899 fee But Nationwide has pushed its way to the top of the rate tables with the new deal which is available to new and existing customers moving home with a 40% deposit the 3.83% rate must be set against a higher fee of £1,499 and a minimum lending requirement of £300,000.  Virgin is still offering the most competitive five-year fix for smaller deposits with its 4.99% deal available at a 75% loan-to-value and a £995 fee Nationwide is offering a five-year fixed rate for remortgage at 4.2% and an equivalent two-year deal at 4.57% both of which charge a £999 fee and require a 40% deposit Co-operative Bank for Intermediaries has cut two and five-year fixed rates for residential purchase and remortgage effective from Thursday (15 August).  The bank is currently offering (before its rate cut) a five-year fixed rate for purchase or remortgage at 4.32% with a £999 fee (60% loan to value) and a two-year equivalent deal at 4.74% The bank’s new rates and deals will be unveiled on Thursday Aldermore has cut its fixed rates by up to 0.5 percentage points on its residential deals and by up to 0.2 percentage points for buy-to-let (BTL) borrowers.  It is also launching two and three-year fixed rate limited edition residential deals with a one percentage point discount off its reversionary rate (currently at 6.23% up to 80% LTV and 6.98% up to 90% LTV) Among its other residential deals Aldermore is offering a fee-free five-year fixed rate deal for home purchase or remortgage for borrowers with at least a 25% cash deposit (75% LTV ) at 5.34% For BTL landlords with single residential investment properties Aldermore has a two-year fixed rate deal for purchase and remortgage at 5.09% (75% LTV) with a 3% product fee Home purchasers looking to fix their rate for the next five years will have a greater choice of sub-4% deals from tomorrow NatWest and Virgin are entering the frame with competitive deals following moves by HSBC and its subsidiary first direct to breach the 4% barrier last week (see stories below) Virgin will peg down five-year fixed-rate cost by 0.21 basis points to create a 3.99% deal with a £995 fee The deal requires a minimum deposit of 25% NatWest has decreased the cost of its five-year fix (via brokers) by 14 basis points to a cheaper 3.89% but with a higher fee of £1,495 Last week it launched a non-broker 5-year deal at 3.97% Nicholas Mendes at broker John Charcol commented: “Virgin’s launch of a 3.99% mortgage at 75% loan to value marks a significant moment in the current mortgage market When lenders feel secure about the economic landscape they can price their mortgages more competitively “This move by Virgin could trigger a chain reaction among other high street lenders not just in terms of rates but also in lending criteria which could become the next area of competition.” Virgin is also pegging down the cost of selected remortgage fixed rates by up to 0.20 percentage points It means that two-year fixed rates will start from 4.40% (for a £995 fee) while the fee-saver equivalent will be reduced by 0.18 basis points Santander has also confirmed it will peg down costs of selected residential fixed rate mortgages for new customers from tomorrow For existing customers looking to transfer to a new deal Buy-to-let mortgage costs will be cut by up to 0.15% for both new and existing customers while the cost of more specialist new-build mortgage deals for new customers will also be slightly trimmed by up to 0.07% The final costs of the respective deals will be confirmed tomorrow when Santander will also introduce a new 10-year fixed deal available for both purchase and remortgage NatWest announced a raft of other cuts to its new business range They include 20 basis points off the cost of its two-year fixed rate for purchases down to 4.28% The deal requires a 40% deposit and comes with a £1,495 fee The three banks are the latest in a line of lenders to reduce rates and introduce new cheaper deals following the cut in interest rates from 5.25% to 5% on 1 August.  has launched a sub-4% deal in response to similar moves by NatWest and Nationwide last week HSBC’s five-year fixed-rate offer is among the cheapest currently available (see first direct offer later in this story) prompting speculation that other lenders will follow suit in the wake of the cut to the Bank of England Bank Rate – from 5.25% to 5% – at the beginning of this month Nicholas Mendes at broker John Charcol said: “This puts HSBC in a prime position in the market August has started with strong competitive momentum.” The HSBC deal requires a substantial deposit along with a booking fee although cashback is also available on completion for some categories of borrower first-time buyers with 40% deposit (60% LTV) must pay a £999 fee First-time buyers able to access HSBC’s Energy Efficient Homes (EEH) mortgage range who have the same deposit and pay the same fee qualify for £1,600 cashback the fee is £999 but there is no cashback payable on standard mortgages but EEH deals on these terms attract cashback of £1,250 Existing customers borrowing more or switching loan with 60% deposit will pay £999 but receive no cashback HSBC subsidiary first direct has announced mortgage rate reductions of up to 0.30 percentage points reducing interest rates across its entire range of two three and five-year fixed rate mortgages and launching three products priced at 3.89% The 3.89% rate is available on the 60% LTV 5-Year Fixed Standard across three buyer categories: first-time buyers home movers and existing customers looking to switch Rate cuts have been applied to over 100 products the range starts at 4.29% on the 60% LTV 5-Year Fixed Standard which is also available as a three-year fix The biggest rate reduction is on the 3-Year Fixed Standard available to first-time buyers NatWest has launched a sub-4% fix for customers who bypass mortgage brokers and go direct to the bank instead to borrowers with at least a 40% deposit (60% LTV) willing to lock in for five years and comes with a fee of £1,495 – though NatWest does pay the valuation fee for you Getting out of the deal early will cost borrowers an early repayment charge of 4.5% in the first year 2.5% in year four and 1% in the final year those who don’t remortgage will fall onto NatWest’s standard variable rate of 8.24% Yorkshire building society has cut fixed rate residential mortgage deals across its range by up to 0.25 percentage points coinciding with the first cut to Bank Rate in more than four years Yorkshire is offering a competitive two-year fixed rate for home purchase at 4.74% with a £495 fee and £250 cashback for buyers with at least a 25% cash deposit The mutual lender has an equivalent two-year deal for remortgage borrowers with 25% equity in their property at 4.79% The rate reductions come as the Bank of England reduced the Bank Rate today from 5.25% to 5% in welcome news for borrowers Bank Rate had been at a 16-year high of 5.25% since August last year.  the specialist lending arm of Yorkshire building society has also nudged down its selected residential fixed rates by up to 0.25 percentage points It is offering a fee-free five-year fixed rate deal for home purchase at 5.07% (down from 5.27%) for borrowers with a 10% cash deposit (90% LTV) MPowered Mortgages has cut selected residential two- three- and five-year fixed rates for borrowers with between 40% and 20% equity or cash deposit (60% LTV to 80% LTV) Among its new deals is a five-year fixed rate for purchase at 4.14% with a £999 fee (at 60% LTV) associate director at broker L&C Mortgages said: “Fixed rates have been edging down recently with small but frequent cuts helping to nudge five-year deals close to and even under 4%.  “Today’s Bank of England interest rate decision to cut a little sooner than many had previously anticipated should only help to add further weight to those reductions.  “We can therefore expect to see further pricing improvements in fixed rates as lenders continue to fight hard to gain a share in a very competitive market.” Halifax has cut selected remortgage fixed rates by up to 0.33 percentage points The bank’s two and five-year fee-free fixed rates have seen the biggest reductions It is offering a fee-free five-year deal at 4.55% for borrowers with at least 25% equity in their home (75% LTV) It is offering a fee-free two-year rate at 5% for borrowers with 40% equity (60% LTV) The fee-free five-year fixed rate for borrowers with 20% equity in their property (80% LTV) has been cut by the full 0.33 percentage points from 5.26% to 4.93% NatWest is cutting selected fixed rates for new customers by up to 0.15 percentage points It comes as lenders look ahead to the Bank of England’s decision on interest rates which is due at midday tomorrow (1 August).  While some experts believe the Bank will cut the benchmark Bank Rate (which has been at 5.25% since August 2023) by a quarter percentage point to 5% tomorrow other pundits predict the first rate cut won’t come until September NatWest has lowered the cost of its two and five-year fixed rates for residential purchase and remortgage It is offering two-year fixed rates for purchase from 4.48% with a £1,495 fee (at 60% loan to value) The five-year equivalent purchase rate is now 4.03% NatWest is offering two-year fixed rates from 4.54% with a £1,495 fee Both deals require borrowers to have at least 40% equity in the property (60% LTV) The bank has deals at slightly higher rates with a lower fee the five-year fixed rate for remortgage is at 4.29% with a £995 fee (60% LTV).Accord has reduced selected residential fixed rates for its existing customers including product transfer deals and rates for additional borrowing will be live on its website from tomorrow (1 August) Santander has slashed its fixed-rate mortgage deals for residential borrowers by up to 0.2 percentage points while buy-to-let rates have been lowered by up to 0.13 percentage points include a five-year fixed rate for home purchase at 4.13% (60% loan to value) with a £999 fee The equivalent deal for remortgage customers is now at 4.32% The bank’s two-year fixed rates now start from 4.51% for purchase and 4.67% for remortgage Both deals require either a 40% cash deposit or equity and have a £999 product fee Santander is now offering a five-year fixed rate for purchase at 4.38% (60% LTV) with a £1,749 fee The equivalent two-year fixed rate deals start from 4.62% (purchase) and 4.70% (remortgage) respectively which is in the process of being acquired by Nationwide in a £2.9bn deal, has cut selected fixed rates for new residential and buy-to-let borrowers by up to 0.31 percentage points effective from 31 July It has also launched a range of broker exclusive deals including a five-year fixed rate for remortgage at 4.25% with a £995 fee (60% LTV) The bank is offering a five-year fixed rate BTL remortgage deal at 4.37% with a £2,195 fee (60% LTV) Selected fixed rate product transfer deals for existing residential and BTL customers have also been reduced by up to 0.1 percentage point with residential five-year deals starting at 4.27% and BTL deals starting at 4.49% (both at 60% LTV) has also cut selected two and five-year residential fixed rates by 0.12 percentage points Its lowest five-year fixed rate deals now start from 4.34% for home purchase and 4.44% for remortgage (60% LTV) The lender’s professional mortgage range (deals for newly qualified professionals in a range of occupations vets and pharmacists) has been slashed by up to 0.32 percentage points and fee-free five-year rates for purchase now start from 4.57% (75% loan to value) has cut two-year fixed rate buy-to-let deals self-contained investment properties with an A to C energy performance certificate (EPC) Rates for properties with an EPC of D or E start from 3.94% Both deals are available at 70% loan to value and have a 5% fee The Bank of England’s monetary policy committee will meet on Thursday this week (1 August) to vote on whether or not to reduce the Bank Rate The Bank published figures this week showing net mortgage borrowing rose to £2.7bn in June suggesting a rebound in confidence in the housing market Mortgage approvals for home purchase were stable at 60,000 in June the figure was the same in May and 60,800 in April Remortgage activity fell marginally from 29.300 in May to 27,500 in June This is a measure of borrowers remortgaging to a different lender not product transfer deals where borrowers switch to a new deal with their existing lender Barclays and TSB are the latest lenders to cut fixed-rate mortgage deals as the summer price war intensifies ahead of the Bank Rate announcement on Thursday 1 August The news comes as research reveals 320,000 borrowers have been pushed into poverty due to higher mortgage rates over the past two years Barclays has announced cuts of up to 0.1 percentage points to a broad range of its residential purchase and remortgage deals Selected product transfer deals (for existing customers looking for a new rate) have also been cut by up to 0.1 percentage points It is offering a five-year fixed rate for home purchase at 4.04% with an £899 fee for borrowers with at least a 40% cash deposit (60% loan to value) Barclays Premier Banking customers can get the same deal at 4.03% two-year fixed rates now start from 4.6% with a £999 fee (60% LTV) Product transfer deals start from 4.57% (two-year fix) or 4.21% (five-year fix) at 60% LTV with a £999 fee TSB has also lowered selected fixed rates for new and existing customers by up to 0.2 percentage points The lender is offering a two-year fixed rate for home purchase from 4.54% with a £995 fee Its remortgage rates now start from 4.74% over two years or 4.34% over five-years These deals all require at least 40% cash deposit or equity in the property (60% LTV) Barclays and TSB follow a number of other lenders in reducing borrowing rates this week which cut its best five-year fixed rate for home purchase to just 3.99% (see stories below) said: “The rate reductions we’ve seen this week are great news for borrowers and reflect strong market competition and confidence that there will soon be a reduction to the Bank of England Bank Rate.  “These latest reductions will provide significant savings for those looking to secure a mortgage or remortgage making it an opportune time to consider locking in a fixed rate.” A report published today by the Institute for Fiscal Studies (IFS) says 320,000 households have been pushed into poverty due to significantly higher mortgage rates.  The data shows borrowers who have remortgaged or taken out new mortgages since 2022 have experienced sharp falls in their disposable income as higher interest rates have pushed up housing costs The Bank of England Bank Rate (the benchmark interest rate) rose from 0.1% in December 2021 to a high of 5.25% in August 2023 said: “Rising mortgage rates have played and are likely to continue to play an important role in many households’ living standards.  they are not measured properly in the official income data This has led to the headline statistics understating the number of people in poverty something set to get worse in next year’s data.” The next Bank of England Monetary Policy Committee (MPC) decision on interest rates is on 1 August Skipton building society is cutting selected two-year fixed and tracker rate mortgage deals by up to 0.2 percentage points The lender is one of a growing number to have trimmed the cost of fixed rate borrowing over the past fortnight Nationwide building society reduced its five-year fixed rate for purchase to 3.99% (see story below) It’s the first time fixed rates have dropped below 4% since April Skipton will offer a two-year residential fixed rate for purchase and remortgage priced at 4.75% with a £495 fee The deal is reserved for borrowers with at least 40% equity or cash deposit (60% loan to value) It is also offering a two-year fixed rate for borrowers with 25% deposit or equity (75% LTV) priced at a slightly higher 4.85% with a £495 fee The mutual lender also has a two-year tracker rate at 0.4 percentage points above Bank of England Bank Rate (currently at 5.25%) giving a starting pay rate of 5.65% The deal comes with a £995 fee and is available at 75% LTV This represents a 0.2 percentage point rate cut from the previous equivalent tracker deal three and five-year residential fixed rates by up to 0.45 percentage points The biggest cuts are for deals at 80% loan to value The lender is offering a three-year fixed rate for purchase at 4.75% with a £999 fee (80% LTV) The equivalent three-year fixed rate for remortgage is now at 4.98% has reduced residential fixed rates on its prime mortgage range (for borrowers with good credit scores) by up to 0.15 percentage points and rate on its near prime range by up to 0.2 percentage points.  Its prime two-year fixed rates now start from 5.39% three-year rates start from 5.19% and five-year deals start from 4.94% Deals at these rates all charge a £900 product fee and are available up to 85% LTV Bank of Ireland has lowered selected product transfer deals for existing borrowers It is offering a two-year fixed rate at 4.82% with a £1,495 fee and a five-year product switch deal priced at 4.74% (down from 4.84%) with a £999 fee Both deals require customers to have at least 40% equity in their property (60% LTV).  Reductions at Atom Bank and Bank of Ireland are effective immediately Nationwide building society is cutting fixed rates across its mortgage range by up to 0.25 percentage points to offer a five-year deal at under 4% The building society follows in the footsteps of HSBC all of which have reduced the cost of fixed rates for borrowers in recent days for home purchases.  But while their five-year fixed-rate deals are marginally above 4% Nationwide’s 3.99% deal will be the current market leader It is four months since lenders were last offering five-year fixed rates at 4% Nationwide’s rate cut will be effective from tomorrow (24 July) The lender will offer a five-year fix for purchase at table-topping 3.99% – a 0.19 percentage point cut on the previous deal at 4.18% The deal comes with a £1,499 fee and requires a 40% deposit It also only applies to loans of £300,000 or more Nationwide will also offer a five-year fixed rate for home purchase at 4.04% with a £999 fee – also for borrowers with a 40% deposit Nationwide is offering five-year fixed rates from 4.27% with a £1,499 fee at a 60% loan to value (LTV) three and five-year fixed rates for existing customers by 0.25 percentage points including deals for those with just 5% equity in their property (95% LTV) Five-year fixed rates for product transfer will start from 4.24% said: “Nationwide is the first lender to breach the 4% rate benchmark following recent weeks of downward repricing This is fantastic news for borrowers and signifies a significant change in the mortgage landscape after recent months of increased rates However he added: “This rate is for purchases only Those remortgaging will need to wait a bit longer before we see rates below 4% as well I expect the biggest future reductions will be in remortgage rates Aldermore has reduced fixed rates across its buy-to-let range Company landlords with multiple properties can get a two-year fixed rate at 4.99% (75% LTV) with a 3% fee Rates for landlords on single residential investment properties are at 5.09% (75% LTV) with a 3% fee.Gen H has cut selected fixed rates by up to 0.3 percentage points will be live from tomorrow morning (24 July) HSBC has cut fixed rates across a broad range of its residential and buy-to-let mortgage deals which offers deals direct and through brokers has been offering highly competitive rates in recent months so this latest cut is expected to take it close to the top of the best buy tables HSBC’s new rates and deals will be live online from tomorrow morning (23 July) the lender is offering a five-year fixed rate for residential remortgage at 4.36% with a £1,499 fee for borrowers with at least 40% deposit.  Virgin Money has cut selected high loan to value fixed rates by up to 0.15 percentage points, effective from today (22 July) at 8pm. Two and five-year fixed rates for purchase and remortgage for borrowers with at least a 20% cash deposit or equity (80% LTV) Among the new rates offered by Virgin will be a five-year fixed rate for remortgage at 80% LTV at 4.8% with an £895 fee Virgin has also nudged down rates on selected buy-to-let and residential product transfer deals for existing customers by up to 0.1 percentage points for both types of deal Five-year product switcher deals for existing customers will start from 4.3% The latest cuts follow a slew of lenders that have taken the knife to the cost of fixed mortgage rates in recent weeks The market is expecting the Bank of England to cut interest rates (Bank Rate is currently at 5.25%) on either 1 August when it next makes a decision on interest rates Skipton building society has launched a home affordability index and interactive tool to help with greater information for potential first-time home buyers.  which in partnership with Oxford Economics analyses the affordability of buying a home in different regions of the country found that only one-in-eight first-time buyers can afford to purchase the average property in their local area The figure plummets to just one-in-100 for those on salaries of £22,850 a year or less The least affordable areas of the country are London plus information from the Office for National Statistics (ONS) to calculate the affordability of home ownership based on a range of factors including earnings It reveals that almost 80% of first-time buyers don’t have enough savings for a deposit to buy the average home and 40% of those in rented housing spend at least 45% or more of their income on rent which is a major barrier to saving towards a deposit has cut selected two and five-year fixed rates for purchase and remortgage by up to 0.22 percentage points Among the new rates the bank will offer is a market-leading five-year fixed rate for purchase at 4.05% with a £999 fee Halifax has a five-year fixed rate at 4.43% with a £999 fee (75% loan to value) and a three-year fix at 4.52% with the same fee (60% LTV) Its two-year remortgage fixed rate falls to 4.67% (60% LTV) with a £999 fee NatWest Bank has cut residential fixed rates by up to 0.23 percentage points and buy-to-let rates by as much as 0.16 percentage points A swathe of lenders have trimmed fixed rates in recent weeks in anticipation of a cut to the Bank Rate (currently at 5.25%) by the Bank of England either in August or September (see stories below) Hopes of a rate cut were raised earlier this week following figures that showed annual inflation remained at its target 2% in June NatWest has reduced selected two and five-year fixed rates for residential purchase by up to 0.23 percentage points The lender is offering a two-year fix for purchase at 4.58% (previously 4.72%) with a £1,495 fee The equivalent five-year fixed rate has fallen to 4.14% (previously 4.29%) The bank’s residential remortgage rates have been cut by up to 0.18 percentage points Five-year fixed rates now start from 4.3% with a £1,495 fee (60% loan to value) NatWest has also cut selected five-year buy-to-let fixed rates for remortgage It is offering a five-year deal at 4.5% with a £3,499 fee TSB has cut selected fixed rate deals for purchase and remortgage by up to 0.15 percentage points It is the bank’s second rate reduction in less than a week after it trimmed deals by up to 0.2 percentage points on Monday (15 July) The lender’s rates for existing borrowers looking for a new deal (product transfer and additional borrowing) have been cut by up to 0.1 percentage points All new rates and deals will be on TSB’s website tomorrow has cut selected two and five-year residential fixed rates by up to 0.28 percentage points effective from 19 July.  Its new rates and deals will be live on its website from tomorrow three and five-year fixed rates for existing borrowers (product transfer deals) by up to 0.13 percentage points and two-year fixed rates for new customers by up to 0.11 percentage points has cut selected residential fixed rates for the third time in two weeks of up to 0.2 percentage points across deals up to 90% loan to value will see the lender offering a five-year deal for home purchase at 4.67% with a £995 fee for borrowers with at least a 25% deposit The mutual lender is also offering a two-year fixed rate for remortgage at 5.77% (90% LTV) with a £995 fee Co-operative Bank and Virgin Money are the latest in a string of lenders to slash mortgage rates as the clamour for business intensifies Co-op Bank for Intermediaries has cut selected two and five-year fixed rates across its residential ranges for new business and product transfer deals (for existing customers) by up to 0.32 percentage points a cut of just 0.05 percentage points has been applied to the lender’s buy-to-let deals The bank is offering two-year fixed rates for residential purchase or remortgage from 4.85% with a £999 fee (60% loan to value) and five-year fixed equivalent deals from 4.38% Buy-to-let deals at the lender now start from 4.84% for a two-year fix Both deals come with a £1,999 fee and are available for purchase or remortgage at 60% LTV Virgin Money has also cut selected residential and buy-to-let rates Product transfer deals for existing borrowers are cut by up to 0.18 percentage points which is in the process of being taken over by Nationwide building society is now offering a fee-free five-year fixed rate for residential remortgage at 4.65% for borrowers with at least 25% equity.  It also has a fee-free five-year fix for home purchase for borrowers with just a 5% cash deposit (95% LTV) at 5.34% has cut fixed rates across its buy-to-let range for the second time this month Cuts of up to 0.25 percentage points will be applied to deals with LTVs of up to 75% The mutual lender now offers a three-year remortgage fixed rate at 4.39% (60% LTV) and a five-year deal priced at 4.64% (75% LTV) The Mortgage Works, the specialist lending arm of Nationwide building society has cut selected buy-to-let ‘switcher’ fixed rates although this rate applies to deals with a 3% fee To qualify borrower must also have at least 35% equity in their BTL property (65% LTV) MPowered Mortgages has cut selected two-and three-year fixed rates It is offering two-year fixed rates for residential purchase from 4.58% with a £999 (at 60% LTV) Equivalent deals with no fee now start from 4.79% Its three-year fixed rate for residential remortgage starts from 4.45% with a £999 fee (60% LTV) The next Bank of England interest rate decision is on 1 August The Bank Rate is currently at 5.25% and has been at this level since August 2023 TSB and Yorkshire building society are the latest lenders to cut selected mortgage rates as costs continue to edge downwards in expectation of a rate cut by the Bank of England Santander has cut fixed rates for purchase and remortgage by up to 0.14 percentage points As part of its rate review it is cutting all fixed rates and two-year tracker rates in its large loan range (for mortgages of £250,000 to £5 million) Tracker deals in this range will be cut by 0.15 percentage points TSB is cutting a small number of its residential fixed rate deals by up to 0.2 percentage points.  Selected BTL deals are being cut by 0.15 percentage points Among the bank’s new deals is a three-year fix for purchase or remortgage at 4.75% with a £495 fee (60% loan to value) Yorkshire building society has cut selected fixed rates by 0.25 percentage points with immediate effect It is the mutual lender’s second rate cut in two weeks It is offering a two-year fixed rate for residential purchase at 4.69% with a £1,495 fee (75% loan to value) and a fee-free three-year fix at 5.04% for purchase or remortgage at 80% LTV Over five-years it has a fixed rate at 4.49% for remortgage borrowers with at least 25% equity in their home (75% LTV) with a £1,495 fee.  Barclays is cutting selected fixed rates for residential purchase and remortgage by up to 0.33 percentage points laying the gauntlet down to other lenders with its table-topping rates The latest reductions will push Barclays five-year purchase fixed-rate to the top of the best buy tables with a rate of 4.09% (60% loan to value) with an £899 fee Barclays Premier banking customers can secure the same deal at a rate of 4.08% Barclays has also slashed remortgage rates and is offering two-year fixed rates from 4.70% (4.67% for Premier banking customers) with a £999 fee (60% LTV) and equivalent five-year rates from 4.36% (4.31% for Premier customers) Coventry for Intermediaries has cut selected residential fixed rates by up to 0.18 percentage points and deals across its buy-to-let range by up to 0.15 percentage points include a five-year fixed rate for residential remortgage at 4.34% with a £999 fee (65% LTV) or at 4.45% (75% LTV) Its buy-to-let deals start from 4.72% for a five-year fixed rate This deal has a £1,999 fee and is available at 65% LTV There is an equivalent five-year deal at 4.77% with no fee has cut selected residential fixed rates by up to 0.25 percentage points The largest reductions are on deals for borrowers with a 10% deposit (90% loan to value) The lender is offering a five-year fixed rate for home purchase at 90% LTV at 5.14% with a £995 fee three and five-year fixed rate deals for purchase by up to 0.17 percentage points The direct-only lender is offering a five-year fixed rate for home purchase at 4.31% with a £490 fee This is for borrowers with at least a 40% cash deposit towards their property purchase (60% LTV) Two-year equivalent fixed rates for purchase at 60% LTV now start from 4.73% The biggest rate reduction has been made on the lender’s two-year fixed rate for purchase at 85% LTV which has been reduced by the full 0.17 percentage points from 5.16% to 4.99% MPowered Mortgages has cut its two-year fixed rate mortgage deals for residential purchase by up to 0.15 percentage points It is offering rates from 4.63% with a £999 fee (60% LTV) Virgin Money (including Clydesdale Bank) has cut its standard variable rate (the interest rate borrowers revert to after a fixed or tracker deal comes to an end unless they switch to a new deal) from 9.49% to 9.24% It is one of the highest SVRs on the market The Nationwide and Skipton building societies have each slashed the cost of their respective fixed-rate mortgage deals It follows similar moves by a swathe of lenders over the past two weeks Nationwide has made cuts of up to 0.3 percentage points across its residential range for purchase and remortgage It is offering a market-leading five-year fixed purchase rate of 4.18% for borrowers with a 40% cash deposit It also has a five-year fixed rate for remortgage at 4.94% (at 80% loan to value) with the same fee which is in the process of buying Virgin Money has also reduced rates by up to 0.2 percentage points on its product transfer rates for existing customers looking for a new deal Skipton has cut residential purchase and remortgage rates by up to 0.33 percentage points It has a fee-free two-year fixed rate for purchase at 4.99% for borrowers with a 40% deposit (60% LTV) and a five-year fixed rate for remortgage at 4.59% (at 75% LTV) with a £1,295 fee Virgin Money has reduced selected residential and buy-to-let mortgage rates by up to 0.22 percentage points.  is a five-year fixed rate for remortgage at 4.54% with an £895 fee (65% LTV) It also has a five-year purchase and remortgage buy-to-let deal at 4.52% (60% LTV) with a £2,195 fee HSBC has unveiled its new residential fixed rate mortgage deals including market-leading deals for homebuyers and lower rates across its range for first-time buyers and remortgage borrowers It comes as some experts say the election of a new Labour government today could now lead to a mortgage and property market bounce which has cut deals across its fixed rate range by up to 0.14 percentage points,  is offering a five-year fixed rate deal for purchase at 4.22% with a £999 fee for borrowers with at least a 40% cash deposit Other highlights include a three-year fixed rate for home purchase at 4.89% for borrowers with a 15% cash deposit (85% loan to value) with a £999 fee and £350 cashback on completion and a five-year fixed rate for remortgage at 4.39% with a £999 fee (at 60% LTV) Most major lenders have cut their fixed mortgage rates over the past week in part due to increasing competition for new business and also in expectation of an interest rate cut by the Bank of England as early as 1 August (see stories below).  said: “The certainty of having the next government in place will be good for the market and we can see in our data that in previous election years there has been a bounce in homemover activity after an election – so the same could happen this year in the short term particularly against a background of a potential Bank of England rate cut on the horizon “It’s encouraging to see that Labour’s manifesto focused on building more homes (it has pledged to build 1.5 million homes over five years) and planning reform Creating more homes for sale and for rent quickly to ensure there are more homes to meet the demand.” Nick Mendes at broker John Charcol said: “With a newly-elected Labour government potential changes to mortgage rates are a topic of interest and this election has been a one-horse race from the start meaning we haven’t seen the usual volatility when forecasting the impact of impending fiscal policies on the economy.  and today’s decision is unlikely to deter the current downward pricing trend in the mortgage market said: “Optimism for some is supported by our research which found that nearly a third of respondents believe a Labour government will make home ownership more accessible For house buyers and sellers in the short term the market is likely to remain on the same trajectory as the first half of 2024 The knowledge that a change of government was coming has avoided a cliff edge.  “The property market can also take comfort in its resilience having navigated changing governments and policy changes time and time again.” product manager at lender MPowered Mortgages said: “We are encouraged by Labour’s plans for building a new generation of new towns fast tracking the approval of brownfield sites and releasing some ‘low quality’ green belts for new developments.  then this will have a positive impact by helping more people on the ladder Labour has a proven track record of success with housing building so let’s hope they can live up to this and deliver on their promises.” Barclays and Yorkshire building society have announced reductions to the cost of fixed-rate borrowing in the footsteps of other major lenders including Halifax NatWest and Santander as expectations grow that interest rates will be cut by the Bank of England next month The next meeting to determine the Bank Rate three and five-year residential fixed rates across a broad range of its deals as well as selected deals for product transfer (for existing customers looking for a new deal) Barclays has cut selected product transfer deals for existing residential and buy-to-let customers looking for a new fixed rate deal Its fee-free five-year product transfer fixed rate for residential borrowers is cut to 4.68% (from 4.95%) This is for borrowers with at least 25% equity in their home (75% LTV).  Yorkshire building society has cut fixed rates for residential purchase and remortgage by up to 0.2 percentage points The mutual lender is now offering a five-year fixed rate for remortgage at 4.69% (down from 4.89%) with a £495 fee for borrowers with 25% equity in their home (75% LTV) Over two-years it now has a deal for purchase at 4.89% (down from 4.99%) with a £1,495 fee for customers with a 25% cash deposit (75% LTV) chief executive of broker SPF Private Clients said: ‘With the big five lenders – Barclays Halifax and NatWest – reducing their mortgage rates this week lenders continue to jostle for business as they ramp up the summer sales Those lenders who haven’t yet repriced are likely to follow suit which underpin the pricing of fixed-rate mortgages are not showing a consistent downwards trend the need to generate more business seems to be motivating lenders to tweak their rates.” Santander has cut selected fixed rates for first-time buyers and home purchase by up to 0.16 percentage points The new rates and deals will be unveiled and available from tomorrow (4 July) But Santander has been consistently among the best buys in recent months and brokers are hopeful its reduced rates will be a boost for home buyers The Spanish-owned bank currently offers a five-year fixed rate for purchase at 4.28% for borrowers with a 40% cash deposit The equivalent two-year rate is 4.8%.  For borrowers with a 10% cash deposit the current rate is 5.10% for a five-year fix or 5.62% over two years Nick Mendes at broker John Charcol said: “Santander is the latest lender to make its mark during a week of significant repricing by high street lenders (see stories below).  “The recent flurry of activity has motivated prospective buyers to reassess their options any hopes of last-minute incentives for first-time buyers are fading Now is the time to act swiftly to stay ahead of the competition.” NatWest has cut selected fixed rate mortgage deals It follows cuts of up to 0.17 percentage points to fixed rate deals by the bank less than two weeks ago Halifax has also announced it will cut selected fixed rate deals for first-time buyers and home movers by up to 0.19 percentage points Among NatWest’s newly-priced deals is a five-year fixed rate for purchase at 4.34% These deals are all available at 60% loan to value and come with a £995 product fee NatWest has also cut rates on its product transfer deals (those for existing borrowers looking for a new rate) For these customers the bank is offering a five-year fixed rate at 4.46% or a two-year rate at 4.86% Both deals are at 60% LTV and charge a £995 fee Selected buy-to-let (BTL) deals at NatWest have been cut by up to 0.18 percentage points Deals for BTL remortgage start from 4.81% fixed over two years These deals are available at a 60% loan to value and come with a £3,499 fee BTL deals with a lower product fee are available at higher rates Virgin Money has cut selected residential fixed rates including reductions of up to 0.1 percentage points for new business purchase deals and up to 0.15 percentage points on selected product transfer deals (for existing customers looking for a new rate) The bank is offering a five-year fixed rate for purchase at 4.5% for borrowers with a 25% cash deposit will also cut selected fixed rate residential mortgage deals by up to 0.38 percentage points Buy-to-let deals have been slashed by up to 0.73 percentage points Residential remortgage fixed rates will be reduced by up to 0.15 percentage points to start from 4.52% while purchase deals will be reduced by up to 0.18 percentage points Both rates apply to five-year fixes at a 65% LTV Selected professional and newly qualified professional mortgages for borrowers working in certain professions will be reduced by up to 0.38 percentage points is cutting selected fixed rates for buy-to-let borrowers by up to 0.3 percentage points The rate reductions will benefit new and existing customers Among its new rates is a five-year fixed rate for standard BTL purchase or remortgage at 4.04% with a 3% fee (65% loan to value) has cut a range of fixed rate buy-to-let mortgage deals by up to 0.4 percentage points plus rates on its residential deals (at higher loan to values of between 75% and 85% LTV) by up to 0.1 percentage point The lender is offering a five-year residential fixed rate for purchase at 4.95% (down from 5.05%) with a £1,995 fee for borrowers with a 25% cash deposit (75% LTV) Skipton building society is launching a number of additional two and five-year fixed rate deals for new customers with 40% cash deposit or equity (60% LTV) or at least 25% deposit or equity (75% LTV) It includes a five-year fixed rate for home purchase at 4.41% with a £1,495 fee (60% LTV) It will also introduce new base rate tracker deals for purchase or remortgage at 0.52 percentage points above the Bank of England Bank Rate (currently 5.25%) is available at 60% loan to value and comes with a £995 fee But mortgages themselves are getting harder to come by according to the latest Bank of England data It showed that mortgage approvals (for home purchase) fell by 1.3% Approvals for remortgage (switching to a deal with a new lender) also dipped slightly from 29,900 to 29,600 over the same period Overall individual net borrowing of mortgage debt fell to £1.2 billion in May personal finance analyst at online investment platform Bestinvest (part of Evelyn Partners) said: “Mortgage approvals – an indicator of future borrowing – dipped in May as lingering affordability concerns caused borrowers to approach the market with caution.  “Interest rates have remained on pause at a 16-year high of 5.25% since August last year something also impacting net mortgage lending which fell in May amid wavering consumer confidence.    but persistently high borrowing costs are still making it hard for buyers to secure the homes they want All eyes are on the next rate decision at the start of August when buyers and those looking to refinance are hoping for some respite.  More than three million borrowers could face shock increases in their mortgage payments over the next two years According to the latest Bank of England data these households are currently paying mortgage rates at under 3% but are due to remortgage onto what will inevitably be more expensive deals between now and the end of 2026 Around 400,000 households will see a significant increase in their monthly mortgage payments of 50% or more For the average mortgage holder rolling off a low fixed rate between now and the end of 2026 the Bank of England says the average jump in monthly repayments will be around £180 – a 28% rise on a typical £650 repayment the Bank is confident the overall risks in the market are unchanged and that households have been broadly resilient in the face of rising rates.  It also pointed to the potential for lower mortgage rates in the coming months to ease pressure on borrowers saying “market participants expect Bank Rate to start falling in the second half of 2024.” Coventry building society has followed other lenders in cutting selected fixed rate mortgage deals for residential borrowers by up to 0.21 percentage points.  NatWest and Skipton building society have all trimmed their fixed rates down in recent days (see stories below) Coventry has also cut selected buy-to-let borrowing rates by up to 0.15 percentage points The mutual lender is offering a two-year fixed-rate deal for first-time buyers with a 15% cash deposit (85% loan to value) at 5.34% There is no fee and the deal pays £500 cashback on completion Five-year fixed rates for remortgage now start from 4.43% (65% LTV) with a £999 product fee Equivalent two-year remortgage deals start from 4.86% Coventry has two-year fixed rates from 5.43% (65% LTV) with a £1,999 fee or equivalent five-year rates from 4.87%.  HSBC and Skipton building society are the latest lenders to cut selected fixed-rate mortgage rates in expectation of a summer interest rate cut by the Bank of England HSBC has reduced the cost of a range of two three and five-year rates across its residential and buy-to-let rates Its two-year fixed rate for residential remortgage at 60% loan to value now starts from 4.88% with a £999 fee (the fee-free option starts from 5.18%) and the equivalent five-year fixed rate is now at 4.44% with a £999 fee (or 4.64% with no fee) For borrowers with 20% equity in their property (80% LTV) rates for remortgage start at 5.64% for a two-year fix with a £999 fee or from 5.04% for a five-year fixed rate Skipton has also cut selected residential and BTL deals For home purchase its two-year fixed rates start from 5.18% with a £495 fee or five-year rates start at 4.64% with a £1,295 fee Both deals are available for borrowers with at least a 40% cash deposit Its two-year fixed rate for residential remortgage is 5.19% with a £495 fee (at 60% loan to value) The equivalent five-year fixed rate deal is at 4.65% with a £1,295 fee The mutual’s 100% loan to value Track Record five-year fixed-rate mortgage for first time buyers remains at 5.79% Skipton’s buy-to-let fixed rates now start from 5.47% for a two-year fixed rate with a £995 fee (60% LTV) and from 4.88% for a five-year fixed rate with a £2,995 fee (also 60% LTV) Nick Mendes at broker John Charcol said: “Following last week’s Monetary Policy Committee (MPC) decision (rates were kept on hold at 5.25%) and with important wage data and general election results on the horizon markets are anticipating reductions in interest rates very soon.  “Given that until recently most lender repricing has involved increases there is now potential for bigger reductions We’ve seen some movement but this latest reprice from HSBC is certainly going to spur on the market.” The number of mortgage borrowers with interest-only home loans has dropped by 5.4% in the past year according to new data published by the financial trade body UK Finance.  It shows there were 664,000 interest-only mortgages outstanding at the end of 2023 Added to this there were 200,000 partial interest-only homeowner mortgages (mortgages that are part interest-only and part capital repayment) This was 9.9% fewer than at the close of 2022 Barclays is cutting the cost of selected fixed-rate residential deals for home purchase by up to 0.31 percentage points MPowered Mortgages has also announced cuts of up to 0.15 percentage points across its fixed-rate range for purchase and remortgage These latest price cuts follow NatWest and Coventry and Suffolk building societies which lowered their fixed rates at the end of last week.  More lenders are expected to nudge their fixed rates down in the coming weeks as expectation grows that the Bank of England will cut interest rates at the next Monetary Policy Committee meeting on 1 August Barclays has reduced its two-year fixed-rate deal for purchase from 4.99% to 4.68% for borrowers with at least a 40% cash deposit (60% LTV) The equivalent deal for borrowers with a 15% cash deposit (85% LTV) is cut from 5.14% to 4.93% (£899 fee) and the fee-free option is down to 5.15% from 5.33%.  Barclays has lowered its rates from 4.41% to 4.23% on purchase deals at 60% loan to value with an £899 fee The same deal at 75% LTV is cut from 4.53% to 4.38%.  MPowered has reduced all two-year fixed rates for residential purchase and remortgage It is offering two-year deals from 4.76% (60% LTV) Fee-free two-year deals now start from 4.99% (down from 5.09%) The lender’s five-year fixed rate for home purchase at 65% LTV drops from 4.53% to 4.47% with a £999 fee While the fee-free equivalent rate is cut from 4.63% to 4.55% said: “Borrowers will be encouraged by a big lender such as Barclays cutting its rates and others could well follow suit We expect lots of change over the coming weeks there will be pressure on the Bank of England to start reducing interest rates at its next meeting in August but lenders could already have reduced their mortgage rates further by then which will be welcome news for hard-pressed borrowers.” NatWest has cut the cost of fixed-rate mortgage deals by up to 0.17 percentage points ahead of today’s Bank of England Bank Rate announcement Other lenders could follow NatWest in trimming down their mortgage rates in the coming weeks even though the Bank of Enlgand held the influential Bank Rate at 5.25% today The expectation is that the rate will be cut by the Bank of England at its next meeting on 1 August NatWest has agreed to acquire the retail banking arm of Sainsbury’s (Sainsbury’s Bank) Sainsbury’s will pay NatWest £125 million for taking it off its hands NatWest will gain around one million Sainsbury’s Bank customer accounts as part of the deal which is expected to be finalised next year NatWest has cut selected rates for residential purchase and remortgage shared equity and help-to-buy deals.  The bank’s five-year fixed rates for remortgage now start from 4.26% which must be applied for and managed solely online It has a £1,495 fee and borrowers must have at least 40% equity in their property (60% loan to value).  Its equivalent two-year online only deal starts from 4.82% Standard five-year fixed rates for home purchase start from 4.40% with a £995 fee (60% LTV) Online and green mortgage deals (for homes with an energy performance certificate rating A to C) start from 4.35% (five years) or 4.78% (two years) Virgin Money is making some changes to selected fixed rate mortgage deals It is slightly increasing the rate on its five-year fee-free purchase deal for borrowers with a 25% cash deposit (75% loan to value) from 4.66% to 4.67% the bank’s five-year fee-free fixed rates for purchase at higher LTVs are being cut For buyers with a 10% cash deposit (90% LTV) the rate is cut from 5.09% to 5% and for borrowers with a 5% deposit (95% LTV) the same deal will see its rate shaved down from 5.4% to 5.35% Virgin’s buy-to-let mortgage deals are getting a more significant rate cut of up to 0.31 percentage points on selected rates Standard BTL five-year rates with a £995 fee will start from 4.78% Suffolk building society has cut a number of its buy-to-let mortgage deals by up to 0.3 percentage points including rates for ex-pat buy-to-let and holiday homes (for UK nationals living overseas but wanting a property in the UK).  Among the mutual lender’s reduced price deals is a two-year standard buy-to-let deal at 80% loan to value at 5.69% There is a £199 application fee and a £999 product fee on the deal TSB has hiked the cost of selected fixed rate deals by up to 0.35 percentage points across residential and buy-to-let borrowing with rates for borrowers with smaller deposits or equity in their home seeing the most increases which yesterday announced rate rises across its mortgage ranges predominantly featuring cost increases for loans at a high loan-to-value ratio (see story below) Among the changes TSB is raising rates on its fee-free two-year residential remortgage fixed rates at 85% LTV and 90% LTV by 0.15 percentage points Two-year remortgage fixed rates at 80% and 85% LTV are also increased by 0.05 percentage points Five-year remortgage fixed rates with no fee up to 75% LTV have been hiked by 0.1 percentage points to 4.99% and the bank’s three-year fixed-rate range for residential borrowing The rate reductions will benefit new and existing borrowers looking for a new fixed rate including those with just a 5% cash deposit or equity in their home The mutual lender is now offering a five-year fixed rate for purchase at 4.8% (85% LTV) with a £999 fee It is offering a five-year fixed rate for remortgage at 4.82% with no fee (85% LTV) is increasing the cost of selected fixed-rate mortgage deals including those for people with a small cash deposit or equity in their home.  Other fixed rates for residential purchase and remortgage will be cut include increases of 0.2 percentage points on five-year fixed rate deals at 95% loan to value (for borrowers with a 5% deposit or home equity) for residential purchase and remortgage Rates will now start from 5.54% with a £999 fee The lender’s broker-exclusive two-year fixed rate for residential purchase at 90% loan to value is going up by 0.15 percentage points to 5.34% with a £1,499 fee.  But there will also be cuts of up to 0.1 percentage point for residential purchase and remortgage deals for borrowers with at least 25% cash deposit or equity (75% LTV and 65% LTV deals) Clydesdale currently offers a broker exclusive five-year fixed rate at 4.77% with a £1,999 fee at 65% LTV Products for existing Clydesdale borrowers looking to switch to a new fixed rate will also be lowered by up to 0.1 percentage point from tomorrow (14 June) More than 1.1 million borrowers have benefited from the government’s emergency Mortgage Charter scheme set up in June 2023 according to figures released by the financial regulator the Financial Conduct Authority.  to help borrowers who were struggling to afford their monthly payments in the wake of significant interest rate rises and much higher fixed rate deals when they came to remortgage.  FCA data shows 159,000 mortgage holders temporarily reduced their monthly payments under the rules of the Charter although only 263 term extensions were changed suggesting most borrowers opted for a period of time on interest-only.  The majority of mortgage holders benefited from the scheme in locking into a new mortgage deal up to six months in advance of their remortgage date (while retaining the option to take a different deal at the time Santander has cut selected fixed rates for residential purchase and remortgage in welcome news for borrowers looking for a new home loan.  has cut its five-year fixed rate with a £999 fee for home purchase from 4.38% to 4.28% for buyers with at least a 40% cash deposit (60% loan to value).  Its two-year fixed rate for purchase with a £999 fee has been cut from 5.18% to 5.11% (85% LTV) The bank’s purchase deals for new build properties have also been reduced it is now offering a deal at 95% loan to value at 5.87% The deal has no fee and pays £250 cashback on completion.  the 95% LTV three-year new build fixed rate with no product fee and £250 cashback is 5.87% The rate cuts come as other lenders have been increasing their fixed rates (see stories below) This is because the market increasingly feels the Bank of England won’t cut interest rates when its Monetary Policy Committee (MPC) meets on 20 June.  But it now appears rates could be higher for longer with the market suggesting the rate cut might come at the next MPC meeting in August Bank of England mortgage lending statistics for the first quarter of 2024 show potentially growing confidence in the housing market The value of new mortgage commitments (lending agreed to be advanced in the coming months) increased by 30.8% from the previous quarter (Q4 2023) to £60.1 billion This was also 31.2% greater than a year earlier the data also shows the amount of mortgage arrears is growing While the number of new arrears cases fell by 11.4% in the first three months of the year the value of total outstanding mortgage balances with arrears increased by 4.2% on the previous quarter to £21.3 billion – 44.5% higher than the same period a year ago The Bank of England Monetary Policy Committee is next due to meet on 20 June Barclays has increased the cost of selected fixed rate deals by up to 0.2 percentage points across its residential purchase and remortgage ranges as lenders continue to adjust their rates to reflect changing sentiment in the market Halifax has also announced it will tweak first-time buyer and home mover rates upwards by 0.05 percentage points on selected two and five-year fixed rates from Thursday (13 June) The increases will be applied across standard deals as well as the bank’s Green mortgages New rates and deals will be live on the bank’s website on Thursday Lenders are increasing rates following increases in swap rates the fixed interest rates banks use to lend to each other in the wholesale market which dictate the mortgage rates that are offered to customers (see stories below) Rates have edged up as the market now believes the Bank of England won’t cut interest rates until its August Monetary Policy Committee meeting at the earliest Previously it had been hoped a rate cut could come at the next meeting on 20 June Among Barclays rate lifts is its five-year fixed rate deal for remortgage at 75% loan to value (for those with at least 25% equity in their property) which has gone up from 4.45% to 4.65% The bank’s two-year fixed rate for purchase at 85% loan to value has risen from 5.18% to 5.28% But while a range of deals will see a rate rise from tomorrow Barclays has also cut the rates on two of its five-year fixed rate purchase deals at 85% loan to value The deal with a £999 product fee falls from 4.78% to 4.73% while the fee-free equivalent deal has been cut from 4.95% to 4.9% NatWest has also cut selected fixed rate deals for buy-to-let (BTL) purchase and remortgage by up to 0.2 percentage points in a mixed move similar to that of Barclays The bank’s rate changes include cuts and increases to Green BTL mortgage deals NatWest has dropped the rate on its two-year fee-free fixed rate for remortgage at 60% loan to value from 5.38% to 5.28% its five-year fixed rate for home purchase at 60% LTV has been pushed up from 4.43% to 4.63% TSB is increasing selected residential purchase rates by up to 0.2 percentage points from tomorrow (Friday) as growing numbers of lenders push up borrowing costs as hopes fade for a cut in the Bank of England Bank Rate on 20 June The bank has given notice to brokers that its two and five-year fixed rates for first-time buyers and home movers (at 75% loan-to-value up to 95% for two-year deals and 75% LTV up to 90% on five-year deals) will rise.  Its two-year rate for purchase will rise to 5.19% (75% LTV) with a £995 fee (up from 4.99%) while the five-year equivalent deal will be at 4.79% (up from 4.64%) the fixed rates at which banks lend to each other in the wholesale markets and which influence mortgage rates This is because the market now expects the Bank of England to cut interest rates in August at the earliest There has also been discussion about whether a cut in the Bank Rate two weeks prior to the General Election on 4 July might be interpreted as a political move Skipton building society has announced increases to selected five-year fixed rate mortgage deals from tomorrow (Friday) including an increase to its 100% LTV Track Record mortgage a fee-free five-year fixed rate deal for first time buyers which will rise from 5.55% to 5.79%.  At the same time the lender will cut selected two-year fixed rates for residential purchase and remortgage Skipton’s deals for buy-to-let borrowers and product transfer deals (available to existing Skipton customers) are also set to rise.  Virgin Money has increased the cost of selected fix and switch purchase deals by 0.1 percentage points.  which offers the opportunity to switch penalty-free after two years now starts from 5.34% (90% LTV) with a £1,495 fee The bank’s two-year fixed rate for home purchase at 90% LTV has also risen Selected buy-to-let rates have been cut marginally Deals for BTL with a 3% fee now start from 4.03% has bucked the trend and cut selected rates across its residential and BTL deals by up to 0.35 percentage points start from 4.94% with a 6% fee (75% loan to value) on its standard five-year fixed rate buy-to-let product HSBC has increased the cost of selected fixed-rate mortgage deals across its residential and buy-to-let ranges start from 4.99% for a two-year fixed rate (60% LTV) with a £999 fee and 4.54% over five-years A number of the bank’s product transfer deals (rates available to existing HSBC customers looking to switch) Brokers are braced for more lenders to increase rates this week as hopes fade for a cut to the Bank of England Bank Rate in June The reduction – from the current rate of 5.25% probably to 5% – is now expected in August have withdrawn selected mortgage deals at higher loan-to-value ratios David Hollingworth at broker London & Country Mortgages does not consider this will become a wider trend: “These deals may be another casualty of higher swap rates but the overall product withdrawal numbers are tiny so it is nothing to get too spooked about.   “The smaller mutual building societies tend to focus more on higher loan-to-value deals as they can’t compete at the lower LTV end of the market They may have taken enough business or need to review their rates if funding costs are shifting.” UK Finance has published figures showing that while the number of borrowers taking out long-term mortgages dipped slightly in the first three months of the year the overall number remains at a historically high level The trend for mortgages at 35 years has grown as a way of making monthly mortgage payments more affordable.  The trade body’s figures show 21% of first-time buyers took a mortgage at 35 years in quarter one of 2024 This compares to less than 10% in 2022 (see graph – source: UK Finance) Bank of Ireland is increasing rates across its full range of fixed rate residential mortgage products up to 95% loan to value Among the new rates for purchase and remortgage is a five-year fixed rate at 4.95% (75% LTV) with a £995 fee It is offering a five-year fixed rate at 5.05% (85% LTV) with the same fee Coventry building society is cutting selected fixed rates for residential purchase and remortgage by up to 0.28 percentage points continuing the trend set by other major lenders in recent days The mutual lender has reduced the cost of deals for new customers and existing borrowers looking for a new rate.  It is offering a two-year fixed-rate deal at 5.05% (65% LTV) with a £999 fee Also new from Coventry is a fee-free first-time buyer product for those with at least 20% deposit at 5.38% with £500 cashback on completion Coventry today confirmed it will buy Co-operative Bank by signing a £780 million purchase agreement which is expected to complete in early 2025 will create a financial group with combined assets of £89 billion which means it is owned by its ‘member’ customers The news comes as fellow mutual Nationwide building society has moved a step closer to securing its takeover deal with Virgin Money Virgin’s shareholders voted on Wednesday this week to accept the deal Neither Coventry’s or Nationwide’s members will be given a vote on their respective deals Mark Harris at mortgage broker SPF Private Clients said: “Some momentum has emerged over the past couple of weeks with a number of big lenders reducing their fixed-rate mortgages on the back of the decline in [wholesale] ‘swap’ rates.  “More recently the markets have pushed back expectations of a rate cut [in June] so we will see whether this trend continues in the short term and what impact that has on mortgage rates.” TSB is cutting fixed rate mortgage deals by up to 0.4 percentage points The bank will reduce rates on two and five-year fixed rates for home purchase and remortgage The new rates will be live on the lender’s website tomorrow morning which both slashed fixed rates yesterday (see below) Halifax will unveil its new rates tomorrow start from 4.82% with a £999 fee for a two-year fixed rate remortgage deal This is for borrowers with at least 40% equity in their property Equivalent two-year deals for home purchase start from 4.8%.  Over five-years Santander is offering a remortgage deal at 4.42% (60% loan to value) with a £999 fee The same deal for purchase is at 4.38%.  More lenders are expected to trim down their fixed rates in the coming days in response to the more positive news on inflation this week and the growing expectation that an interest rate cut by the Bank of England is on the cards But Barclays has bucked the trend in announcing an increase to selected two and three-year fixed rates from across its range by as much as 0.3 percentage points The rate increases affect deals for new customers as well as rates on product transfer deals (rates for existing customers looking for a new fixed rate) While a handful of Barclays’ fixed rates for purchase will be reduced the majority of the bank’s rate changes are upwards This includes the lender’s two-year fixed rate for remortgage at 60% loan to value Its two-year fixed rate for purchase or remortgage at 75% loan to value will rise from 4.75% to 5.05% Nick Mendes at broker John Charcol said: “Mortgage rates have eased back a touch in recent weeks but we are seeing a mixture of attitudes between lenders on pricing “Anyone approaching the end of a fixed rate deal should not delay There is still uncertainty around rates and the reductions we’ve seen of late could be withdrawn and reversed at short notice.” are cutting fixed-rate deals following today’s news on a steep fall in the rate of inflation and the growing expectation of a cut in the Bank Rate Halifax is cutting two and five-year fixed rates for residential borrowers by up to 0.19 percentage points Santander for Intermediaries is slashing selected rates for residential and buy-to-let borrowers These latest rate cuts are likely to bring both banks in line with the best buys in the market Leeds building society is also cutting rates (see below) The latest Office for National Statistics inflation data shows that the rate fell sharply to 2.3% in the year to April (from 3.2% in March).  This has fuelled market expectations of an interest rate cut this summer inflation may not have fallen enough for an early interest rate cut by the Bank of England next month.  The ONS figures for May will be released on 19 June with the next Bank Rate decision due on 20 June A number of lenders have been repricing their fixed-rate deals downwards in response to changing market sentiment on rates Others are now expected to follow Halifax and Santander in trimming rates said: “It’s good news to see the headline rate of inflation drop back so much closer to the Bank of England target rate of 2% but at 2.3% it may also bring some disappointment for those looking for signs of an imminent cut to base rate.  “The figure is at the higher end of forecasts and could mean Bank Rate is held at a higher level for longer “Mortgage rates have eased back a touch in recent weeks but today’s figures may well hold back the chance for that to become a stronger trend A big fall in inflation was expected and therefore already priced into fixed rates.” Leeds building society has cut selected fixed mortgage rates by up to 0.2 percentage points Deals receiving a haircut include those at 75% loan to value and 90% loan to value The mutual lender is offering a two-year fixed rate at 5.14% (85% LTV) with a £999 fee It has also launched a new fee-free five-year fixed-rate deal for home buyers with a 5% cash deposit HSBC has unveiled its new fixed-rate mortgage deals for residential and buy-to-let borrowers following a cut of up to 0.18 percentage points first announced last week (see stories below) Inflation is expected to fall steeply when the April figure is announced this Wednesday due to the drop in energy prices in recent months This may prompt more lenders to adjust their pricing downwards as it becomes more likely the Bank of England will cut interest rates in response to falling inflation Among HSBC’s lower rates for home purchase and remortgage customers are a two-year fixed-rate deal for purchase at 4.79% with a £999 fee and a five-year equivalent fixed rate at 4.4% Both deals require a 40% cash deposit towards the purchase (60% LTV) the bank is offering a two-year fixed-rate deal at 4.84% with a £999 fee Both deals require borrowers to have at least 40% equity in their property Residential deals for existing HSBC customers looking for a new fixed rate through a product transfer deal have also been cut by up to 0.11% A five-year fixed rate at 60% loan to value (LTV) now starts from 4.39% with a £999 fee Buy-to-let rates for purchase and remortgage have been cut by up to 0.14 percentage points The lender is offering a two-year fixed rate for remortgage at 4.69% with a £1,999 fee (60% LTV) or a five-year equivalent deal at 4.48% Virgin Money is cutting the cost of selected fixed rate deals by up to 0.21 percentage points from tomorrow (22 May) Reductions will be applied on residential purchase and remortgage deals selected product transfer deals (for existing Virgin borrowers) and on a range of buy-to-let product transfer deals whose shareholders are due to vote this week on a potential takeover by Nationwide building society will publish its new mortgage rates live on its website tomorrow morning It currently offers a five-year fixed rate for remortgage at 65% LTV at 4.64% with an £895 fee Barclays and HSBC are the latest lenders to slash the cost of fixed-rate mortgages which cut the cost of selected deals earlier this week.  have increased rates in recent days (see stories below) although brokers expect an interest rate cut by the Bank of England within the next few months HSBC is reducing a range of fixed-rate deals for residential and buy-to-let borrowers both new customers and existing ones looking to switch to a new rate remortgage customers and deals for energy-efficient homes will be live on the bank’s website tomorrow (Friday) morning It currently offers two-year fixed rates for residential remortgage from 4.88% with a £999 fee (60% LTV) and five-year equivalent deals from 4.48% (also 60% LTV) Barclays is cutting rates for new and existing customers by up to 0.45 percentage points It is offering a five-year fixed rate for home buyers at 4.34% (down from 4.47%) with an £899 fee This is for borrowers with at least 40% deposit to put towards the purchase The bank’s five-year fixed rate for remortgage falls to 4.32% from 4.77% also with an £899 fee and available at 60% LTV (borrowers need 40% equity in their property) Its two-year fixed rate for remortgage is now 4.61% (60% LTV) Nick Mendes broker at broker John Charcol said: “Following last week’s announcement that the Bank of England Bank Rate would remain unchanged there has been a noticeable shift in market sentiment.  “Financial markets have adjusted their forecasts Given most lenders have increased their fixed rates in recent weeks it means there is now significant potential for rate reductions in the coming fortnight “Barclays’ and HSBC’s rate cuts are a positive development and will no doubt prompt similar action from other lenders It is anticipated this could increase competition among lenders potentially leading to more favourable mortgage rates for consumers.” the specialist mortgage lender for people aged over 50 has cut fixed rates across its product range by up to 0.58 percentage points The reductions apply on retirement interest-only mortgages as well as on lifetime mortgages for equity release The lender’s LiveMore 1 standard capital and interest and standard interest-only five-year fixed rate deals now start from 5.99% (up to 70% LTV) NatWest is increasing the cost of selected two and five-year fixed-rate residential mortgages by 0.05 percentage points The increase will be applied on deals for home purchase The move comes despite falls in wholesale interbank borrowing rates which suggests NatWest is attempting to control demand for its products so as to be able to maintain service standards and not responding to fears that borrowing costs generally are set to remain high There is a growing expectation that the Bank of England will trim the Bank Rate from 5.25% at some point over the summer NatWest already increased rates for new borrowers in April and hiked the cost of product transfer deals (available to existing customers coming to the end of a deal and looking for a new rate) on 8 May Its two-year fixed rate for home purchase will now increase from 4.77% to 4.82% (60% LTV) with a £1,495 fee The five-year equivalent rises from 4.4% to 4.45% NatWest will now offer a two-year fee-free deal from 5.22% at 60% LTV (up from 5.17%) or fee-free five-year fixed rates from 4.67% (up from 4.62%) Nick Mendes at broker John Charcol said: “Given that most lenders have raised their rates recently I think hopefully there should now be scope for some reductions to fixed rates in the next two weeks.” Santander has pushed up the cost of fixed rate deals for new and existing customers (those looking for product transfer deals) by up to 0.33 percentage points The rise comes despite the Bank of England freezing the Bank Rate at 5.25% on Thursday last week The bank’s new deals and rates include increases to selected residential purchase and remortgage rates It is offering five-year fixed rates for residential remortgage from 4.5% with a £999 fee (60% LTV) and two-year equivalent deals from 4.94% The lender’s maximum loan size on selected residential fixed rates will also increase from £570,000 to £1 million at 90% loan to value MPowered Mortgages has cut two and five-year fixed-rate mortgage deals across its range and is offering market-leading deals for home purchase It is the lender’s second rate cut in under a week has a five-year fixed rate for home purchase at 4.37% (down from 4.59%) with a £999 fee This is for borrowers with at least a 40% cash deposit to put towards their purchase (60% loan-to-value).  MPowered’s equivalent fixed-rate deal for purchase has been slashed to 4.67% (down from 4.84%) the rates at which banks lend to each other and which therefore influence fixed mortgage rates have been falling since the Bank of England kept the Bank Rate frozen at 5.25% last week Experts now predict the Bank Rate will be cut before the end of the summer MPowered’s remortgage rates are higher than its purchase rates over two and five years It is offering a two-year deal at 4.77% and five-year rates from 4.43% (both at 60% LTV with a £999 fee) Natwest has a five-year fixed rate for remortgage at 4.32% (60% LTV) said: “It’s good to see a lender taking the opportunity to compete harder Hopefully this is an indication that the recent increases in fixed mortgage rates are calming down.” said: “The swap markets are moving at pace It is important that as a responsible lender we are able to react and pass on any savings we can to borrowers I’m therefore really pleased we are one of the first if not the first to cut rates this week having already cut rates once in the past week.” TSB has cut selected residential fixed mortgage rates The rate reduction comes as the Bank of England kept the Bank Rate on hold yesterday at 5.25% gave his clearest indication yet that interest rates are set to fall in the coming months Economists now predict this could be as soon as June depending on the next inflation figure from the Office for National Statistics on 22 May.  The Bank’s next interest rate decision will happen on 20 June three and five-year fixed rates for purchase and remortgage This applies to borrowers with at least a 25% cash deposit or equity in their home The lender hiked its fixed rates up by 0.35 percentage points at the end of April along with a swathe of other lenders increasing fixed rate costs (see stories below).  Today’s rate cut brings TSB’s deals back in line with other leading offers although its prices remain above the very keenest rates available The lender is offering a two-year fixed rate for home purchase at 4.89% with a £999 fee (60% loan to value) Its five-year fixed rate deal for remortgage also looks competitive at 4.59% with a £999 fee (60% LTV) Matt Smith at property website Rightmove said: “After a few weeks of mortgage rate increases we’ve seen early signs that this current run of increases has peaked and we’d expect that average rates will begin to trickle down again soon.  “Inflation still seems to be heading in the right direction a position the Bank has highlighted in its decision this week with a view that it will fall below the 2% target in the coming months The market is still assuming that the first Base Rate cut will happen in the summer and today’s decision is unlikely to change that view.  “All eyes now turn to the publication of April’s inflation data (on 22 May) which is the next key milestone and is likely to determine the immediate direction of mortgage rates in the UK.” Barclays has cut the cost of selected fixed-rate mortgage deals for residential home purchase for borrowers with at least 15% cash deposit The bank’s two-year fixed rate at 85% loan-to-value (LTV) is cut from 5.23% to 4.99% with an £899 fee The fee-free equivalent deal is cut from 5.57% to 5.18% the lender’s purchase deal is cut from 4.92% to 4.78% (also 85% LTV with an £899 fee) The fee-free version is cut from 5.13% to 4.95% MPowered Mortgages has cut selected fixed rate mortgage deals by up to 0.65 percentage points bucking the trend among other lenders to raise fixed rates The lender’s new three-year fixed rate for remortgage is for borrowers with at least 40% equity in their property The equivalent three-year deal for home purchase is now fixed at 4.59% Fee-free deals are available over three-years starting at 4.79% for purchase (also at 60% LTV) or 4.69% for remortgage MPowered’s two-year fixed rates have also been trimmed down with deals for purchase starting at 4.84% with a £999 fee (60% LTV) The fee-free two-year fixed rate for remortgage is now available from 5.15% (60% LTV) HSBC and NatWest are both hiking the cost of fixed-rate product transfer deals – those available to existing customers looking for a new fixed rate Along with a number of banks and building societies these lenders increased the cost of fixed-rate borrowing for new customers at the end of last month (see stories below) HSBC is increasing fixed rates for existing residential and buy-to-let borrowers looking for a new deal and for those looking to switch to a new fixed rate and increase their borrowing five and 10-year fixed rate product transfer deals are increasing at 60% LTV up to 90% LTV HSBC’s two-year fixed-rate product switch deal has risen to 4.78% from 4.63% Its five-year equivalent deal has gone up to 4.39% from 4.32% NatWest is raising the cost of its two and five-year fixed rate product transfer deals by up to 0.12 percentage points The bank’s new two-year rate is at 4.89% with a £995 fee (60% LTV) Five-year deals now start from 4.53% with the same fee (60% LTV) Virgin Money has increased the cost of selected residential and buy-to-let fixed rate deals Its core residential purchase two and five-year fixed rates and product transfer deals at 65% and 75% loan to value are all set to rise The lender is now offering a five-year fixed rate for residential remortgage at 4.79% with a £995 fee (65% LTV) The two-year equivalent deal is now at 5.09% Yorkshire building society has announced it is raising the cost of selected mortgage deals from today as Santander’s new higher rates also kick in Yorkshire Building Society has increased the cost of selected fixed rate residential mortgage deals by up to 0.4 percentage points with immediate effect This includes an increase to the mutual lender’s £5,000 deposit mortgage for first-time buyers – a fee-free five-year fixed rate deal launched last month – from 5.99% to 6.39% A YBS spokesperson said: “We have maintained the rate of our £5k deposit mortgage product since its launch to enable the first-time buyers it is aimed at to benefit as much as possible funding costs in the market have increased materially and so we need to appropriately reassess its pricing We remain confident that this product represents good value for customers in this segment of the market.” YBS is now offering a five-year fixed rate at 4.79% with a £1,495 fee (75% loan to value) The equivalent two-year fixed rate is now priced at 5.39% For home purchase the equivalent five-year rate is 4.69% (also 75% LTV) and over two years rates start from 4.99% The YBS hikes coincide with Santander’s rate increase to its fixed rate mortgage range announced yesterday – the second in less than a week (see stories below) The bank’s residential fixed-rate deals have risen by up to 0.26 percentage points and buy-to-let deals by up to 0.22 percentage points The lender is now offering a two-year fixed rate for residential purchase or remortgage at 4.88% with a £999 fee (60% LTV) and a five-year equivalent deal at 4.47% (also 60% LTV) Both Santander and YBS deals are available direct or via brokers A spate of rate rises by a number of leading lenders this week had left Santander towards the top of the best-buy tables for some rates and deals which can lead to an unwanted surge in business coming through brokers. As well as responding to wider wholesale market costs lenders can raise mortgage rates to control business volumes Nationwide building society and Santander have unveiled their new fixed rate mortgage deals following rate increases of up to 0.25 percentage points and 0.2 percentage points respectively both lenders remain close to the top of the best buy tables for two and five-year fixed rates for purchase and remortgage the cheapest fixed rate for remortgage is now at 4.77% on offer from NatWest with a £1,495 fee (60% LTV) Nationwide and Santander have equivalent deals at 4.79% with a lower £999 fee The best two-year fixed rate for purchase is on offer from Lloyds Bank at 4.61% with a £999 fee (60% LTV) This is a direct-only deal and not available through brokers The best buy five-year fixed rate for remortgage is now 4.4% on offer from Santander (at 60% LTV) with a £999 fee (previously the lowest rate was 4.28% with NatWest).  Net mortgage approvals for house purchase increased from 60,500 in February to 61,300 in March according to figures from the Bank of England’s Money – the highest number of home loan approvals since September 2022 net approvals for remortgage with a new lender fell from 37,700 to 34,200 suggesting more borrowers may be sticking with their existing lender to avoid a new affordability assessment and to pay lower fees NatWest and Nationwide are also both offering keenly-priced five-year fixed rates for remortgage at 4.42% and 4.49% respectively (both at 60% LTV) Nationwide offers an equivalent deal at 4.44% with a £1,495 fee for mortgages of £300,000 or more Nationwide is offering the lowest five-year fixed rate deal for home purchase at 4.34% with a £1,495 fee but this is for loans of £300,000 or more and for borrowers with at least 40% cash deposit towards the purchase (60% LTV).  the best five-year purchase rate is now at 4.4% with a £999 fee Virgin Money is increasing the cost of selected fixed rates by up to 0.2 percentage points from tomorrow Among the deals seeing rate hikes are residential purchase and remortgage rates and the Fix and Switch range These are five-year fixed rates for purchase or remortgage that have an option to switch to a different deal (with Virgin or any other lender) MPowered Mortgages has an equivalent two-year purchase deal at 4.72% with a £999 fee (60% LTV) NatWest’s two-year fixed rate for purchase is now 4.77% with a £1,495 fee Both Nationwide and Santander have equivalent deals over two years starting from 4.79% Nick Mendes at broker John Charcol says more borrowers are opting for two-year deals where previously five-year rates had been more popular This is likely to be because borrowers are hopeful rates will soon start to fall The differential in rate between two and five-year fixed rates has narrowed (five-year fixed rates used to be much lower relative to two-year fixed rates) and taking a two-year fix offers greater flexibility as borrowers can switch to a lower rate sooner if rates fall.  Mendes said: “If inflation continues to pose a challenge and doesn’t fall as quickly as expected we should expect the Bank of England Bank Rate to be higher for longer which would in turn result in a period of higher mortgage rates given the current movement and overall landscape I do expect to see a reduction in August and potentially one more by the end of the year.” Skipton building society is bucking the trend of rising rates by cutting selected fixed rate mortgages from tomorrow (1 May) including its innovative Track Record product for first-time buyers available to FTBs with a proven record of paying monthly rent for the past year It is also cutting the cost of fee-free two-year fixed rates for home purchase for borrowers with just a 5% or 10% cash deposit At 90% loan to value the rate will fall from 6.16% to 5.99% and at 95% LTV the rate will fall from 6.19% to 6.08% Skipton is also reintroducing remortgage deals up to 90% loan to value is increasing selected fixed rates for new borrowers by up to 0.25 percentage points from tomorrow (30 April) which have both announced rate hikes to fixed rate borrowing which has offered market-leading fixed rates for purchase and remortgage in recent weeks will unveil its new rates and deals tomorrow morning Santander has said it will increase its rates by up to 0.2 percentage points for new borrowers (purchase and remortgage) as well as for existing customers looking for a product switch fixed rate.  The lender’s buy-to-let fixed rates will rise by up to 0.25 percentage points The new higher rates and deals from across its range will be available from tomorrow NatWest is increasing the cost of its two and five-year fixed-rate purchase and remortgage deals It follows increases of up to 0.1 percentage points to its fixed-rate product transfer  deals last week NatWest’s new two-year residential purchase fixed rates start from 4.77% with a £1,495 fee (60% loan to value) The five-year equivalent deal will rise to 4.4% the bank’s two-year fixed rates now start from 4.82% (up from 4.68%) or from 4.42% over five-years (up from 4.28%) deals for shared equity purchase and green mortgage products (for homes with an energy performance certificate rated A or B) will also all rise in cost by up to 0.22 percentage points from tomorrow Buy-to-let two and five-year fixed rates for purchase and remortgage are also set to increase by the same amount Nick Mendes at broker John Charcol said: “These latest rate rises were inevitable following market movements and competitor repricing last week in which most high street lenders increased fixed rates (see stories below).” Halifax for Intermediaries is increasing its maximum loan to value ratio on part-repayment/ part-interest-only mortgages from 75% to 85% from tomorrow (30 April) The maximum LTV on pure interest-only loans remains at 75% Britain’s biggest mortgage lender Halifax along with its specialist lending arm BM Solutions has confirmed the cost of its new fixed rate deals following its announcement earlier in the week that it would hike rates by up to 0.2 percentage points Halifax’s remortgage deals now start from 4.83% for a two-year fix (60% LTV) with a £999 fee (up from 4.69%) or 4.43% (up from 4.33%) for a five-year deal Halifax’s move follows similar rate rises by leading lenders this week Halifax has increased the cost of borrowing across its range of home mover and product transfer and further advance deals (for existing customers looking for a new deal and to borrow more) BM Solutions is offering a two-year remortgage buy-to-let deal at 4.97% with a £1,499 fee (65% LTV) and five-year deals at 4.6% said: “The primary driver of this latest round of fixed rate mortgage repricing is rising swap rates These rates are heavily influenced by gilt yields (government bond rates) “Recent hikes in mortgage rates have mirrored rises in gilt yields spurred by market revisions in the anticipated timing and magnitude of interest rate cuts by central banks It now looks like interest rates will be higher for longer.” are increasing selected fixed mortgage rates in response to rising borrowing costs Swap rates – the rates at which banks and building societies lend to each other – increased at the end of last week in response to the latest inflation figures.  The official inflation rate fell to 3.2% (from 3.4%) in March but this was a smaller reduction than expected It is likely to mean interest rates will remain higher for longer with a rate cut by the Bank of England now more likely in the autumn rather than June HSBC is increasing fixed rates on a range of residential and buy-to-let mortgage deals and on its product switcher deals for existing customers looking for a new rate.  It is now offering two-year fixed rates for remortgage from 4.88% (previously 4.68%) with a £999 fee (60% LTV) and equivalent five-year rates from 4.48% (4.33%) three and five-year purchase and first-time buyer deals from 60% to 90% loan to value (LTV) and residential remortgage rates from 60% to 75% LTV HSBC has two-year rates from 4.83% (4.68%) with a £999 fee and five-year rates from 4.48% (4.24%) also with a £999 fee (both deals are at 60% LTV) Barclays is increasing selected fixed rates for residential purchase and remortgage The lender’s rate rises include an increase in its five-year fixed rate for remortgage from 4.67% to 4.77% (at 60% LTV with a £999 fee) Two-year equivalent remortgage rates will rise from 4.84% to 4.94% NatWest has increased its two and five-year fixed-rate product switcher deals by up to 0.1 percentage points will start from 4.99% over two years with a £495 fee or from 4.49% over five-years with a £995 fee (both deals are at 60% LTV) Leeds building society is increasing selected residential fixed rates Accord has raised the cost of selected residential fixed rates by up to 0.4 percentage points.  Accord’s new two-year fixed rates start from 5.48% with a £1,995 fee (75% LTV) and five-year rates start from 5.22% For home purchase Accord’s rates are now at 5.29% for a two-year fix (£1,995 fee at 75% LTV) and equivalent five-year fixed rates start from 4.95% Virgin Money is increasing selected fixed rates for new and existing customers (product transfer deals) by up to 0.1 percentage points The lender’s Fix & Switch fee-saver deal for home purchase for borrowers with a 10% cash deposit (90% LTV) The five-year fixed rate for its Green New Build homes rises by the same amount to start from 4.44% (60% LTV) Product transfer deals are set to rise by 0.1 percentage points with five-year fixed rates now starting from 4.38% (60% LTV) TSB is increasing selected fixed rates for home purchase and remortgage by up to 0.35 percentage points Deals for shared ownership and shared equity mortgages are set to rise by up to 0.75 percentage points At the same time the lender is withdrawing all two-year tracker rate mortgage deals Two and five-year buy-to-let rates will also rise by up to 0.45 percentage points The bank’s new two-year fixed rate for remortgage will start from 5.19% (previously at 4.84%) with a £995 fee (60% LTV) and five-year equivalent deals will start from 4.69% (4.39%) Nick Mendes at broker John Charcol said: “This move from HSBC leaves Nationwide building society and NatWest leading from the front with their rates for purchase and remortgage deals for new borrowers (NatWest has increased product switcher rates for existing customers) This will inevitably mean their service levels will come under pressure which is likely to lead to these lenders also making similar moves by increasing rates over the coming days.” Virgin Money has made changes to selected fixed rates reducing some deals while increasing the cost of others Deals in the lender’s Fix and Switch product range (five-year fixed rate deals with an option to switch deal penalty-free after two years) for residential home purchase have been pushed up by 0.1 percentage points with rates now starting from 5.18% (60% loan to value) while Fix and Switch remortgage deals have risen by 0.05 percentage points and now start at 4.94% Two-year fixed rate deals for home purchase with a £995 fee up to 85% LTV have also been increased by up to 0.15% Virgin has tweaked down the rate on its residential five-year fixed rate for remortgage with an £895 fee (75% LTV) by 0.05 percentage points to 4.54% Buy-to-let two and five-year fixed rates with 1% fee will be reduced by up to 0.07% Its BTL five-year fixed rate at 60% LTV with a 3% fee has been cut by 0.08 percentage points to 4.09% Santander for Intermediaries has cut selected residential fixed rates by up to 0.24 percentage points It follows cuts by the bank of up to 0.21 percentage points at the end of March The Spanish-owned bank has also reduced selected fixed rate deals for buy-to-let purchase and remortgage Santander is offering five-year fixed rates for residential remortgage from 4.3% three-year rates from 4.57% and two-year rates from 4.65% These deals are available at 60% loan to value and have a £999 product fee TSB has cut selected fixed rates by up to 0.2 percentage points Its five-year fixed rate for home purchase has fallen to 4.29% with a £995 fee The rate is close to the market leading five-year rates for purchase which now start from 4.17% (see stories below) TSB’s 95% five-year fix for first-time buyers and home movers with just a 5% deposit is now at 5.29% with no fee Two- and three-year fixed rates for first-time buyers and home movers with up to a 20% cash deposit have been cut by up to 0.15 percentage points The two-year fixed rate is now at 4.94% with a £995 fee (80% LTV) Two-year fixed rates for remortgage for borrowers with  at least 20% equity in their property (80% LTV) are now at 5.34% with a £995 fee or 5.74% with no fee.  TSB’s five-year fixed remortgage rates start from 4.39% (60% LTV) with a £995 fee or from 4.59% with no fee Bank of Ireland has increased fixed rates on its bespoke product switch deals its two-year fixed rates are up from 5.16% to 5.26% while five-year rates have risen from 4.85% to 4.95% Both deals have a £1,495 product fee and are available at 60% LTV said: “We will likely see a mixed bag with rates over the next few weeks as markets continue to second guess what the future holds “Bank of England bank rate is widely expected to fall in June but there are growing concerns that this could now be pushed back to August with the likelihood of a Fed rate decrease also looking unlikely before then “As a result we should expect any mortgage rate reductions to potentially be pulled quickly especially those that are amongst the best buys.” The next Bank of England Bank Rate decision is on 9 May The less-than-expected fall in the annual rate of inflation has increased speculation that the Bank may not cut rates until the autumn at the earliest HSBC has cut selected fixed rates by up to 0.11 percentage points as it aims to grab a larger share of the mortgage market Among the standout deals in its latest round of repricing is a two-year fixed rate for remortgage at 4.68% with a £999 fee.  It brings the high street bank in line with the current best buy two-year remortgage deals on offer from NatWest which has a deal at 4.68% with no arrangement fee Borrowers need at least 40% equity in their property to be eligible for these deals NatWest offers a lower two-year fixed rate at 4.64% but this is for an online-only mortgage where customers must apply and manage the account solely online HSBC is also offering a five-year fixed rate for home purchase (at 60% LTV) from 4.24% which is within touching distance of the best purchase rates in the market The lowest five-year purchase fixed rate is on offer from Barclays at 4.17% with an £899 fee (60% LTV) HSBC has also tweaked down its product transfer deals for existing borrowers looking to switch to a new rate bringing its five-year fixed rate for existing customers down to 4.24% with a £999 fee Two year equivalent deals with no fee start from 4.83% New data from Barclays shows household spending on mortgage and rental payments increased by just 1.8% in March This is some way below the peak of 12.2% recorded in June 2023 suggesting increases to housing costs could be stabilising But the report also found one in 10 consumers aren’t confident in their ability to meet their monthly mortgage and rental payments while nearly a fifth are cutting back to keep up with rising housing costs HSBC is cutting selected fixed rates across its residential and buy-to-let mortgage ranges for new and existing customers looking for a new deal three and five-year fixed rates for residential purchase and remortgage fixed rate deals on product transfers (deals available to existing customers) as well as buy-to-let purchase and remortgage deals and international holiday home purchase and remortgage will go live on HSBC’s website tomorrow morning (9 April).  HSBC’s current residential remortgage rates start from 4.71% for a two-year fix and from 4.33% over five years Both deals are for borrowers with at least 40% equity in their home (60% loan to value) and have a £999 product fee.  The current best-buy for a two-year fixed rate remortgage is 4.68% with NatWest which also offers the best five-year fix at 4.24% where borrowers must apply and manage the account online Both rates are available up to 60% loan to value and there is a £1,495 fee Nick Mendes at broker John Charcol is hopeful the HSBC move will ignite a round of price cuts among lenders: “I expect to see HSBC improve on the minimal cuts we’ve seen from [its] competitors in recent days NatWest has done well to remain among the best buys for purchase and remortgaging products but HSBC could topple it when it launches its new rates tomorrow.” has cut selected two and five-year fixed rates for home purchase remortgage and product transfer by up to 0.11 percentage points in tweaking rates downwards for new and existing customers following more positive news on inflation and interest rates last month (see stories below) While Halifax reduced rates for purchase yesterday the rate cut for selected remortgage deals will be effective from tomorrow (3 April) Two and five-year fixed rate deals for product transfer (deals for existing customers looking to switch to a new rate) and deals for further advance (existing customers wanting to borrow more) will also be cut by up to 0.11 percentage points from tomorrow The lender’s two-year fixed rate for home purchase is now at 4.63% with a £999 fee for borrowers with at least 40% deposit (60% loan to value) The equivalent five-year rate starts from 4.39% (also 60% LTV) the specialist lender which is also part of the Halifax Bank of Scotland group has also reduced selected fixed rates across its product transfer and further advance ranges The new rates and deals will be available from tomorrow (3 April) The Bank of England’s latest Money and Credit Report is showing green shoots for the housing and mortgage market with net mortgage approvals for house purchase up by more than 4,000 to a total of 60,400 in February (this is up from 56,100 in January) Net approvals for remortgage (borrowers switching to a new deal with a different lender) also increased from 30,900 to 37,700 during the same period The ‘effective’ interest rate – the actual interest paid – on newly drawn mortgages fell by 0.29 percentage points managing director at property lender MT Finance encouraging figures from the Bank of England and it’s a good sign when house purchase numbers are moving in the right direction Buyers are comfortable that the interest rate environment is settled “With remortgaging to another lender increasing it is a further sign that the interest rate environment is moving in the right direction as more borrowers are looking at their options rather than taking the easier route of a product transfer (with the same lender).” Santander has unveiled its latest fixed-rate deals for new customers following the announcement of its 0.21 percentage point rate cut yesterday (see story below) The new deals include a competitive five-year remortgage offer with a fixed rate at 4.34% is on offer for borrowers with at least 40% equity in their property It sits just above the current market best-buy (on deals at 60% loan to value) from NatWest at 4.24% with a £1,495 fee (or at 4.19% for an online mortgage which you must apply for and manage online only) HSBC’s equivalent deal is at 4.33% while mutual lender Nationwide building society also has a five-year fixed rate for remortgage at 4.34% which cut selected fixed rates by up to 0.25 percentage points earlier this week is sitting among the best-buys with its two-year remortgage fixed rate at 4.64% (60% LTV) with a £999 fee Santander is now offering rates for remortgage from 4.6% and its two-year rates start from 4.7% These rates are at 60% loan to value and have a £999 fee Santander’s five-year fixed rate for home purchase (60% LTV) is at 4.24% with a £999 fee Two-year equivalent deals start from 4.65% Nick Mendes at broker John Charcol believes competition among lenders could heat up again after the bank holiday weekend Last week’s Bank Rate freeze at 5.25% by the Bank of England has given lenders confidence that the next interest rate movement will be down the rates at which banks lend to each other and which influence fixed mortgage rates creating a mixed picture with some lenders cutting fixed rates and others pushing costs up Mr Mendes said: “There is certainly room for more lenders to follow Santander in cutting rates and I expect we will see five-year fixed rates edge closer to 4% again with each passing week.” Yorkshire Building Society is launching a deal for first-time buyers that enables them to get on the housing ladder with just a £5,000 deposit The five-year fixed rate loan, available to first-time buyers has a 5.99% interest rate with no product fee.  Yorkshire will accept applications from borrowers in England Scotland and Wales who have a £5,000 cash deposit and are looking to purchase a house worth up to a maximum of £500,000 It means borrowers can potentially borrow up to 99% of a property’s value The deal is not available for the purchase of flats or new-build properties and the society has said loans are subject to rigorous credit scoring and affordability checks For someone buying a typical first-time buyer property at £200,000 a £5,000 deposit would equate to 2.5% of the purchase price The deal is available direct to customers and via brokers through Accord Mortgages said requiring a £5,000 deposit could shorten the time needed for first-time buyers to get mortgage-ready and “encourage a level playing field for those who don’t have financial support from their families to fall back on” said: “It’s nice to see a bit of innovation and it brings another alternative for hard-pressed first time buyers.  “It won’t work for those that can’t afford the mortgage but will be perfect for those that can afford to take on a mortgage but are hampered by the need to save a bigger deposit It could therefore accelerate the ability to buy giving security of tenure and avoiding the frustration of house prices potentially moving further out of reach while people are saving “Borrowing at a high loan to value naturally will bring a risk that prices could drop back but the five-year fixed rate deal should help to see the mortgage reduced over time and defend against that.” While there is some limited choice of deals for borrowers with a 5% cash deposit along with schemes for first-time buyers such as shared equity and shared ownership loans guarantor mortgages and the deposit unlock scheme (for borrowers purchasing a new-build home with a 5% deposit) deals for borrowers with no deposit are rare is fee-free and has a five-year fixed rate at 5.45% The amount first-time buyers can borrow is capped as monthly mortgage payments can’t be more than the average monthly rent Based on a typical monthly rent of £1,290 (with an applicant borrowing at 100% loan to value with an interest rate of 5.45% over a 35-year mortgage term) Skipton could potentially lend up to about £241,000 for home purchase Santander has cut a range of its residential and buy-to-let fixed rate deals by up to 0.21 percentage points Santander has consistently offered competitive rates for home purchase and remortgage in recent months and this latest rate cut could see them back at the top of the best buys It is currently offering a five-year fixed rate for remortgage at 4.45% at 60% LTV with a £999 fee HSBC is changing selected fixed rate deals for new borrowers and existing customers from tomorrow (27 March) Its deals at higher loan-to-value ratios will be reduced while rates on lower LTV deals are set to rise The Mortgage Works (part of Nationwide building society) and Bank of Ireland have cut selected rates.  HSBC has said it will shave selected rates on two three and five-year fixed rates for home purchase at 90% to 95% LTV Deals at 85% LTV and lower LTV ratios will increase The bank’s two and three-year fee saver fixed rates for purchase will also rise at 90% LTV Deals for existing customers coming to the end of a deal and looking for a new fixed rate are set to rise for higher LTV deals and fall for deals at higher 90% and 95% LTV Selected buy-to-let (BTL) rates for existing customers will go up while deals for new BTL borrowers – for purchase and remortgage – will decrease The bank will unveil its new rates and deals Some brokers have expressed surprise at HSBC’s rate ries given the growing market sentiment that the Bank of England could cut interest rates this summer said: “It is an interesting move from HSBC which clearly feels it isn’t a prudent move to reduce mortgage rates right now for its keenest priced deals [at lower LTVs] It may also be a decision to control its current pipeline of applications.” Barclays is cutting rates on selected residential purchase and remortgage deals by up to 0.25 percentage points from tomorrow (27 March) Among the changes the bank is reducing its two-year fixed rate remortgage deal at 75% LTV with a £999 fee from 4.9% to 4.7% has slashed selected fixed rates by up to 0.4 percentage points The mutual is offering a five-year fixed rate for purchase and remortgage at 3.99% with a 3% fee (at 55% LTV) and a two-year fixed rate (also purchase and remortgage) for limited company borrowers at 4.99% with a 3% fee (75% LTV) Bank of Ireland has said it will improve selected BTL rates from tomorrow (27 March) Its two-year fixed rates for BTL remortgage at 60% LTV will start from 4.79% with a £995 fee and equivalent five-year rates will start from 4.59% has revamped its BTL range and launched two five-year fixed rate products for remortgage while cutting rates on other selected deals by 0.1 percentage points It is offering a five-year fee-free remortgage deal at 5.89% (65% LTV) and a five-year fixed rate at 4.89% with a 5% fee (also 65% LTV) is bucking the trend for lowering rates by increasing its two and three-year fixed rates on BTL product transfer deals (deals for existing borrowers looking for a new rate) Selected deals will be nudged up by 0.05 percentage points from Thursday (28 March) Five-year BTL product transfer rates are unchanged Mortgage interest rate cuts by the summer are looking increasingly likely which would come as welcome relief to beleaguered borrowers The Bank of England held the Bank Rate at 5.25% today But the vote among the Monetary Policy Committee (which decides on the rate) was split with 8 out of 9 committee members voting to maintain the Bank Rate and one member voting for a cut of 0.25 percentage points to 5% and NatWest was quick to cut its five-year fixed rate deals (see story below).  “I expect similar moves by other lenders over the next fortnight as confidence slowly filters back into the market There is no reason why we shouldn’t see the best five-year fixed rates back at sub 4% is also optimistic: “With inflation dipping to 3.4% it is time for the rate-setters to be bold The evidence suggests we are edging closer to a rate cut This would increase borrower confidence and give the housing market a welcome boost “We expect the Bank of England Bank Rate to be close to 4% by the end of the year assuming inflation continues to move towards its 2% target This would come as welcome news for borrowers struggling with affordability “But as far as mortgage pricing is concerned what the Bank of England does with base rate is only part of the picture then lenders will introduce cheaper mortgage rates increasing the choice for borrowers at more palatable pricing Lenders are certainly keen to lend and want to do more business after a disappointing 2023.” mortgage expert at property portal Rightmove said: “Although today wasn’t the day for the first Bank Rate cut and it’s very much a ‘when’ rather than ‘if’ we see the first drop from 5.25% “Mortgage rates have risen slightly over the last six weeks but it does feel like the pressure on lenders to increase rates has dissipated with some lenders having already cut rates in response to yesterday’s positive inflation news This may mean that average mortgage rates start to fall back in the next couple of weeks If this is the case it will be the first time average rates will have reduced in over a month “Home-movers shouldn’t expect to see a rush of rate cuts but the two announcements this week should hopefully continue to give movers more confidence than they perhaps had at the start of 2023.” Despite the Bank of England’s interest rate hold Virgin Money has announced rate increases to selected fixed rate deals for home purchase and remortgage which is the subject of a £2.9 billion acquisition bid by Nationwide building society will nudge up selected fixed rates for new customers by up to 0.05 percentage points from 8pm today (21 March) The bank is offering a five-year fixed rate purchase exclusive deal at 90% LTV at 4.67% (increased from 4.65%) with a £1,295 fee and a fee-free five-year fix and switch deal for remortgage at 4.89% at 70% LTV (up from 4.85%) Virgin customers can switch to a different deal with the bank after two years without penalty if they wish Virgin Money is also increasing selected product transfer fixed rate deals Five-year fixed rates will now start from 4.38% NatWest is reducing selected five-year fixed rates for purchase and remortgage from tomorrow (21 March) The bank’s rate cut follows the news that inflation fell from 4% to 3.4% in February Mortgage brokers are now hopeful falling inflation could lead to an interest rate cut sooner than had previously been predicted which is likely to lead to cheaper mortgage deals.  The next Bank of England interest rate decision will be at noon tomorrow although no change to rates is expected at this point.  NatWest’s five-year fixed rate for home purchase has been cut by 0.05 percentage points to 4.19% with a £1,495 fee This is for borrowers with at least a 40% cash deposit (60% LTV) The equivalent deal at 80% LTV will now start from 4.47% The lender has also cut five-year fixed rates for shared equity purchase deals Help to Buy shared equity remortgage deals and across its purchase and remortgage green mortgages Five-year remortgage rates have been cut by up to 0.24 percentage points with deals starting at 4.28% (60% LTV) with a £1,495 fee The equivalent deal at 80% LTV starts from 4.94% But NatWest has nudged up the cost of selected two-year tracker rate mortgages by up to 0.4 percentage points The two-year deal for borrowers with 40% equity or deposit will start from 5.79% with a £995 fee (the tracker rate has risen from 0.14 percentage points above the Bank of England Bank Rate to 0.54 percentage points above) Nick Mendes at broker John Charcol said: “While today’s inflation data was better than the market expectation… markets are still pricing in the first [Bank Rate] reduction for between June and August.  but we’re still seeing lenders must make marginal increases to reflect the subdued movement in the financial markets lenders will be taking stock to balance their service levels and new business with the prospect now that activity will be picking up in June “The financial markets will be paying close attention to the Bank of England governor’s notes tomorrow and any split in voting on interest rates to see if this may point to future rate movements.” Precise Mortgages has withdrawn five-year fixed-rate buy-to-let products at 70% and 75% loan to value Five-year deals at 70% LTV currently start from 4.39% with a 7% fee (or from 4.79% with a 5% fee at 75% LTV) TSB is increasing selected fixed-rate deals from tomorrow (20 March) by up to 0.25 percentage points for new and existing customers the lender’s two and five-year fixed rates for remortgage at between 75% loan to value and 95% loan to value will be increased It will offer two-year fixed rates at 5.44% and five-year rates at 4.99% (75% LTV) The cost of selected fixed rate deals for home purchase are pushed up with two-year rates starting from 5.09% (80% LTV) with a £995 fee Five-year fixed rates at 90% LTV will start from 5.34% with no fee three and five-year fixed rates on product transfer deals are also set to rise by up to 0.2 percentage points These are deals for existing TSB customers coming to the end of a deal and looking for a new fixed rate Nationwide building society has pushed up the cost of selected fixed rates for current customers looking for a new deal including those coming to the end of an existing fixed-rate deal and those looking to borrow more The new two-year fixed-rate product switcher deals now start from 4.69% (60% loan to value) with a £999 fee The five-year equivalent fixed rates start from 4.24% Equivalent deals for existing Nationwide customers looking for additional borrowing start from 4.69% with a £999 fee (60% LTV) over two years The Bank of England will announce its latest Bank Rate decision this Thursday with commentators suggesting that it is almost certain to hold the rate at 5.25% – especially if the Federal Reserve holds US rates when it meets on Wednesday Figures from the regulator the Financial Conduct Authority show that around 1.5 million homeowners will come to the end of fixed-rate mortgage deals during 2024 With other lenders including Nationwide increasing their product transfer rates to somewhere in the region of 5% (see stories below) there is likely to be widespread pressure on household budgets from higher mortgage costs The Bank of England has estimated around five million homeowners will see their monthly mortgage payments rise between now and 2026 Halifax is increasing the cost of selected two-year fixed rates for remortgage by up to 0.17 percentage points from Friday (15 March) It follows increases to the bank’s fixed rates for home purchase The rate hike will affect two-year fixed rates for remortgage including for larger loans (£2 million to £5 million) as well as shared ownership and shared equity deals Halifax’s current two-year fixed rate for remortgage is among the best buys starting at 4.6% with a £999 fee (60% LTV) brokers say Halifax should still be competitive in this sector Halifax will raise two-year fixed rates on selected product transfer deals for existing customers by 0.32 percentage points The lender has also announced it is cutting its maximum working age on some mortgage applications from 75 to 70.  The change will apply to some remortgage applications where the borrower is either releasing equity or borrowing more on their mortgage as well as for some purchase and remortgage applications based on the applicant’s credit score.  Halifax has said that for all other applications a maximum working age of up to 75 can be used Coventry building society is reducing selected fixed rates for residential and buy-to-let purchase and remortgage from tomorrow (14 March) Although the mutual lender’s rate cut bucks the trend among other lenders who are increasing rates (see stories below) brokers say Coventry’s rates are not currently among the best-buy deals Concern is growing in the mortgage market following the latest mortgage data released by the Bank of England which shows that home loan arrears rose by 9.2% in the last three months of 2023 compared to the third quarter of the year (July to September) Rising interest rates over the past two years combined with the cost of living crisis appear to be pushing more homeowners into difficulties The value of outstanding mortgage balances with arrears rose to £20.3 billion in quarter four of 2023 This is 50.3% higher than the same period in 2022.  The proportion of total loan balances with arrears relative to all outstanding mortgage balances also increased from 1.12% in quarter three of 2023 to 1.23% in Q4 of 2023 This figure now stands at its highest level since 2016 Alice Haine at investment specialist Bestinvest said: “Households struggling to keep up with mortgage repayments are likely to have other debts to consider putting them at risk of a severe personal finance crisis “Chancellor Jeremy Hunt may have delivered another two pence cut to national insurance contributions in his Spring Budget but that may be too little too late for the many already squeezed by high living costs.”  Halifax is increasing its two and five-year fixed rates for residential homebuyers by up to 0.2 percentage points from Wednesday (12 March) The increase will affect deals for first time buyers and home movers large mortgage loans (£2 million to £5 million) shared equity and shared ownership mortgages Halifax has offered competitive rates in recent months Its current residential home purchase rates start from 4.28% (five years) and 4.6% (two years) with a £999 fee (at 60% LTV) The bank will publish its new rates on Wednesday Santander is increasing the cost of borrowing for new and existing customers by up to 0.43 percentage points from tomorrow The Spanish-owned bank increased rates by up to 0.34 percentage points last month as it joined the majority of mainstream lenders in pushing up rates since the start of the year This trend followed the emergence of a widespread belief that the Bank of England will hold its key Bank Rate of interest higher for a longer period than expected in the continued battle against inflation The next Bank of England announcement on the level of the Bank Rate is due on 21 March Santander’s latest rates won’t be unveiled until tomorrow but the cost of a broad range of residential deals for purchase and remortgage are expected to be nudged up along with selected tracker rate deals and rates on buy-to-let (BTL) borrowing.  A number of residential remortgage deals will be reduced in cost at the same time Santander is also increasing rates on its product transfer range by up to 0.34 percentage points These are deals for existing customers who are looking for a new rate Co-operative Bank for Intermediaries is also increasing two and five-year fixed rates with a £1,999 fee by up to 0.22 percentage points from tomorrow while five-year rates will start from 4.46% (60% LTV) is also reducing three-year fixed rates with a £999 fee by 0.06 percentage points to 4.6% The lender’s two and five-year BTL fixed rates will rise by 0.19 percentage points but selected residential professional mortgage rates and two-year fixed rates under the Help to Buy Wales scheme will be cut TSB is making changes to fixed mortgage rates across its range including cutting selected rates while increasing the costs of other deals the lender is cutting three and five-year fixed residential purchase rates by 0.05 percentage points at higher loan-to-value ratios (90% to 95% on three year deals and 80% to 95% LTV on five-year fixed rates).  New three-year purchase rates will start from 5.34% (up to 95% LTV) while five-year rates will start from 4.59% (up to 85% LTV) with a £995 fee But selected fixed rates on product transfer deals while two-year fixed rates for buy-to-let remortgage are also set to go up by 0.2 percentage points three and five-year fixed-rate residential product transfer deals at 60% LTV up to 75% LTV are affected Two-year deals with a £995 fee will now start from 4.64% while equivalent five-year rates will rise to 4.39% Saffron building society has cut rates on buy-to-let deals mortgages for the self-employed and for first-time homebuyers by up to 0.8 percentage points It is offering a five-year fixed rate for residential first-time buyers with a 10% cash deposit at 5.27% HSBC is the latest lender to announce increases to the cost of its fixed rate mortgages Clydesdale Bank and Principality building society who have all hiked borrowing costs this week It is HSBC’s second rate increase in less than two weeks which will be announced tomorrow (6 March) will see a rise in rates across the majority of loan-to-value ratios for residential and buy-to-let products for both new and existing customers Several other major lenders are increasing their borrowing rates with a consensus emerging that the Bank of England will keep interest rates higher for longer in the face of stubbornly high inflation Lenders are responding to the rise in ‘swap’ rates the rates at which the banks lend to each other and which influence fixed-rate borrowing costs for consumers Nick Mendes at broker John Charcol said: “Swap rates continue to see small uplifts in the run up to tomorrow’s Budget This has also coincided in a noticeable dip in sentiment and confidence in the market in recent weeks.” Clydesdale Bank (part of Virgin Money) and Principality building society have nudged selected residential fixed rates higher following a swathe of lenders doing the same in recent weeks.  Barclays has increased rates for new and existing borrowers looking for a new deal But it has also reduced two tracker products for buy-to-let borrowers The bank has increased its two-year fixed rate for home purchase (for borrowers with a 40% deposit) to 4.54% from 4.39% The fee-free equivalent deal rises to 4.68% from 4.58% Barclays’ fee-free two-year fixed rate at 90% LTV has been increased from 5.43% to 5.66%.  Its two-year BTL tracker deal has been cut from 6.48% to 6.2% (60% LTV) The same deal at 75% LTV is cut to 6.25% from 6.5% Virgin Money is nudging up the cost of a range of its fixed rate deals by up to 0.18 percentage points while reducing selected two and five-year residential remortgage rates The rate changes are effective from tomorrow (6 March) The lender’s five-year remortgage Fix and Switch fixed rate at 70% LTV will be increased by 0.06 percentage points to 4.85% The fee-free equivalent deal will be increased by 0.07 percentage points to 5.16% Two and five-year fixed rate deals for mortgages of £1 million or more will increase by 0.23 percentage points (at 75% LTV) with rates starting from 4.79% with a £1,995 fee NatWest has increased selected two and five-year fixed rates for existing customers looking for a new deal by 0.1 percentage point.  Among its new rates on product transfer deals is a five-year fixed rate at 4.34% (60% LTV) with a £995 The two-year equivalent deal now starts from 4.69% (up from 4.59%) has increased rates across its range for new and existing borrowers by up to 0.29 percentage points on residential deals and by up to 0.45 percentage points on BTL products.  Clydesdale’s specialist mortgage deals aimed at newly-qualified professionals (such as doctors and solicitors) will rise by 0.65 percentage points.  Principality building society is increasing selected fixed rates across its range by up to 0.34 percentage points Residential remortgage rates at 90% and 95% LTV are affected as are a number of buy-to-let deals for new borrowers Approvals for home purchase mortgages rose for the fourth consecutive month in January taking them to their highest level in more than a year according to the latest figures from the Bank of England Today’s Credit and Money Report shows the number of approvals rose to 55,227 in January The figures were last at this level in October 2022 Net approvals for remortgage – which relates to remortgaging with a different lender not transfers with an existing lender – remained stable at 30,885 in January (the December figure was 30,917) But the number is higher than the 25,819 recorded in January 2023 The ‘effective’ interest rate – the average interest paid by borrowers – on newly drawn mortgages fell by 0.9 percentage points to 5.19% in January This is down from a high of 5.34% in November last year which was the highest since the Bank started recording average mortgage rates in 2016 Mark Harris of broker SPF Private Clients said: “Approvals rose again in January as lower mortgage rates boosted affordability and confidence The average interest rate paid on newly-drawn mortgages fell in January but towards the end of the month lenders were raising their fixes again.” Alice Haine at investment specialist Bestinvest agrees buyer appetite appears to be growing: “Confidence is slowly returning to the housing market with prices remaining resilient The prospect that Jeremy Hunt will unveil a 99% mortgage scheme in his Budget next week may offer a further boost to the sector helping first-time buyers with a deposit of just 1% get a foot on the property ladder.  new buyers should carefully evaluate any mortgage they take on to ensure they can comfortably afford the monthly repayments particularly at a time when mortgage rates remain so high.”  TSB is increasing the cost of selected residential fixed rate deals from tomorrow (1 March) by up to 0.15 percentage points for new customers and up to 0.25 percentage points for existing customers (on its product transfer deals) But it is reducing a range of its tracker mortgage deals for new borrowers by up to 1.05 percentage points as well as cutting its two-year fixed rate buy-to-let remortgage deals by up to 0.5 percentage points The rate increases will see the bank’s three-year fixed rate residential remortgage deal rise from 4.54% to 4.69% The deal has a £995 fee and is available for homeowners with at least 25% equity in their property Its three-year fixed rate deal for homemovers will rise from 4.44% (at 60% loan to value) to 4.54% Rates on residential product transfer deals three- and five-year fixed remortgage deals will increase across the board for borrowers with at least 25% equity in their home.  Two-year fixed rates currently start at 4.44% (60% LTV) with a £995 fee and at 4.04% over five-years but these deals will rise by up to 0.25 percentage points The new rates and deals will be published tomorrow Santander for Intermediaries has launched a new range of three-year fixed rate mortgage deals for borrowers buying new build properties with a 5% cash deposit (95% loan to value) The fee-free deal is at 5.39% and pays £250 cashback on completion The equivalent deal at 90% LTV starts at 4.97% with a £999 fee or 5.15% with no fee.  All Santander deals for new build purchase can be reserved for up to nine months in advance of completion Bank of Ireland is withdrawing selected residential fixed rates It is expected that the lender will increase rates in the coming days Nationwide building society is hiking the cost of its fixed rate mortgages by up to 0.2 percentage points for new borrowers and existing customers effective from tomorrow (29 February) will see two three and five-year fixed rates for remortgage nudged up by up to 0.15 percentage points Costs of five-year deals at 60% loan to value will start from 4.29% with a £999 fee while two-year deals will start from 4.69% are set to rise by up to 0.2 percentage points Five-year purchase fixed rates will start from 4.19% with a £999 fee for borrowers with at least 40% cash deposit Equivalent three-year rates start from 4.54% and two-year deals from 4.64% The higher rates apply to customers applying through a broker or directly to the lender Nationwide has also introduced a range of remortgage deals for new customers with only 5% equity in their property – equivalent to a 95% Loan to Value Although the lender already offers these deals for first-time buyers and home purchasers it is the first time it has offered remortgage deals at 95% to remortgagers since 2008 Its two-year fixed rate at 95% LTV is priced at 5.84% with a £999 fee or there’s a 6.14% equivalent with no arrangement fee Over three-years the same deal is priced at 5.7% (or 5.88% with no fee) or 5.34% over five years (5.49% with no fee) Nationwide is also increasing selected fixed rates on its product transfer deals and rates for additional borrowing The hikes affect borrowers with at least 25% equity in their property.  for borrowers looking for a new deal with Nationwide which offers mortgage deals through brokers is making changes to a wide range of its fixed rate deals for new and existing customers from Friday (1 March) While the bank has said it will lift two and five-year rates for home buyers as well as increasing selected two-year remortgage rates by up to 0.29 percentage points it will also reduce its two and five-year fixed remortgage rates for borrowers with at least 10% equity in their property (at 90% loan to value) for existing customers looking for a new deal with the bank will be increased by up to 0.29 percentage points Halifax’s current two-year remortgage fixed rates for new borrowers start from 4.52% with a £999 fee The new rates and deals will be published on Friday Virgin Money is increasing the cost of selected fixed-rate mortgages by up to 0.1 percentage points for new borrowers and up to 0.2 percentage points on deals for existing customers looking to switch will see the lender’s cheapest five-year fixed rate for remortgage (through brokers at 60% loan to value) rise to 4.44% This is the lender’s third round of mortgage rate increases this month Most lenders have adjusted rates upwards in recent weeks in response to inflation data in the UK and in the United States which shows prices are not falling as quickly as had been hoped This is being seen as a reason for the Bank of England to hold interest rates higher for longer Virgin’s fixed rates for home purchase will also rise The lender is offering a five-year fixed purchase rate at 4.69% (85% LTV) with no fee three and five-year fixed rate product transfer deals (available to existing Virgin Money customers looking for a new deal) are also set to rise across the board Five-year fixed rates for customers with at least 40% equity in their property will now start from 4.3% with a £1,495 fee five-year fixed rates now start from 4.94% (or 5.34% over two years) with a £995 fee Virgin Money and Halifax have signed up to offer a new type of mortgage deal for buyers of new-build homes will launch from Monday next week (26 February) a company set up in 2022 to make home purchase more accessible Rate Reducer works by ‘rerouting’ housebuilder cashback incentives from the buyer to the mortgage lender.  The cashback – which can total up to 5% of the home purchase price – will then be used to offset against mortgage interest instead with the effect of reducing the buyer’s monthly mortgage repayments.  a buyer putting down a 10% deposit on a new home worth £350,000 with a 5% cashback offer would see their fixed rate reduce from 4.79% to 3.78% over two years.  only homebuyers with the chunkiest deposits could see their rate reduced to 0.99% Own New’s Rate Reducer scheme is available to all buyers and borrowers can choose between two or five-year fixed rate deals.  It’s currently only available through Barratt Developments but a further 60 housebuilders are set to join from next week Lenders that have pledged to follow Virgin Money and Halifax and join the scheme include Gen H said: “Rate Reducer will help target one of the key barriers for many buyers giving more breathing space in monthly payments.” He added: “Borrowers will have to meet lender affordability tests as normal but it will also be important for them to plan ahead.  Once the deal ends there is every chance that the rate environment will still be higher and so payments will climb “We’ve seen other schemes that can help buyers with small deposits but this new innovative approach puts another option on the table for buyers.” Own New already offers Deposit Drop – a scheme which in partnership with Darlington building society helps homebuyers in Yorkshire and the North East get access to 95% mortgage deals.  HSBC has raised the cost of fixed rate mortgage deals across its range – including its market leading 3.99% five-year fixed rate for remortgage – in a blow to prospective borrowers which brokers described as ‘inevitable’ follows Santander which pulled the plug on its sub-4% remortgage deal on Tuesday (see story below) It comes amid a flurry of price adjustments from rival lenders HSBC is increasing residential fixed rates for new and existing borrowers product transfer and buy-to-let from tomorrow (Friday 23 February).  which include a 5-year 3.99% fix (the only sub-4% deal remaining on the market) will be pulled at close of business tonight (22 February) NatWest is increasing selected fixed rates for new and existing borrowers from tomorrow Two and five-year fixed rates for purchase and remortgage will rise by up to 0.15 percentage points while green and shared ownership mortgages will increase by 0.1 percentage points Costs for the lender’s two-year fixed rate for remortgage now start from 4.69% with a £1,495 fee (60% LTV) The equivalent five-year deal has gone up by the same amount to a new rate of 4.3% Virgin Money is nudging up selected fixed rates for new and existing customers by up to 0.1 percentage point from 8pm tonight Broker exclusive residential remortgage deals at 60% LTV and 70% LTV as well as some buy-to-let mortgage costs will rise by the full 0.1 percentage point TSB has increased the cost of its fixed rate residential mortgage rates It’s the lender’s second rate rise this month after it pushed up rates on 9 February (see stories below) The bank is offering two-year fixed rates for remortgage from 4.84% three-year fixed rates from 4.44% and five-year rates from 4.49% All deals come with a £995 fee and are available for homeowners with at least 40% equity in their property the increases will apply on lending up to 75% loan to value TSB is offering a two-year fixed rate at 4.99% (for buyers with at least 15% deposit) or a five-year fix at 4.64% (also 85% LTV) A two-year fixed rate fee-free deal for first-time buyers is now priced at 5.39% commented: “Sub-4% deals will be off the cards temporarily but once more positive inflation data feeds back into the market we expect pricing will slowly edge back down.” However, Halifax for Intermediaries is bucking the trend by reducing selected mortgage deals Fixed rate deals will be reduced on the bank’s remortgage range for new customers as well as on purchase deals (including for first-time buyers) deals for larger loans (£2 million or more) All new rates and deals will be unveiled tomorrow The Government is expected to launch a new scheme for first-time buyers in next month’s Spring Budget It will encourage lenders to offer 99% LTV mortgages which will enable buyers to get onto the property ladder with just a 1% cash deposit.  It is thought the government will offer backing to lenders in the form of a financial guarantee in a similar way to its current 95% mortgage guarantee scheme Santander is increasing the cost of its fixed-rate mortgage deals by up to 0.34 percentage points from this evening which will see an end to its sub-4% five-year fixed rate deal The bank’s five-year fixed rate deal for residential remortgage will now start from 4.22% with a £999 fee for borrowers with at least 40% equity in their property Equivalent two-year rates will start from 4.72% The move will leave HSBC as the only mainstream lender still offering five-year residential fixed rates at under 4% The deal is available through brokers as well as direct from the bank.  HSBC’s five-year fixed rate deal for residential remortgage at 3.99% is available to homeowners with at least 40% equity in their property and there is a £999 arrangement fee.  Borrowers can get a rate at 3.96% with the bank but there is a £1,499 fee (also 60% loan to value) But brokers say HSBC’s rates are also likely to be increased.  Nick Mendes at broker John Charcol says: “Initial market expectations had factored in multiple Bank Rate reductions [by the Bank of England] throughout the year now suggests such reductions may not materialise until at least June borrowers should act quickly to secure a deal While we still anticipate a reduction in fixed rates the timeline for this adjustment may be longer than initially expected there is still flexibility to make changes close to completion should a more favourable offer become available.” Bank of Ireland is increasing selected fixed rates across its product transfer range for existing customers from tomorrow Among the new deals the lender is offering two-year fixed rates from 4.93% and five-year fixed rates from 4.62% both with a £1,495 fee and at 60% loan to value Nationwide building society is increasing selected fixed and tracker mortgage rates by up to 0.25 percentage points from tomorrow (13 February).  The rate hike will apply across the mutual lender’s mortgage deals for new borrowers and for existing Nationwide customers looking for a new deal (product transfer deals) or moving home and borrowing more (additional borrowing) Nationwide’s two-year fixed rate for remortgage will rise to 4.54% with a £1,499 fee (60% LTV) while the equivalent five-year deal will rise to 4.14% The five-year fixed rate has risen from 3.94% previously It has also increased rates for home purchase Deals now start from 4.49% with a £1,499 fee (60% LTV) over two years and from 4.04% over five years at the same LTV Nationwide joins a growing number of lenders in its upping mortgage costs Virgin Money and Halifax all lifted their fixed rates Clydesdale Bank has also given notice to brokers that it will increase selected residential fixed rates by up to 0.2 percentage points from 13 February.  Its residential purchase rates for borrowers with at least 35% cash deposit will be withdrawn at the end of today (12 February) along with selected deals for professionals and newly qualified professionals will also reduce rates on selected two- and five-year fixed rates at 95% loan to value and launch new fixed rate deals for borrowers with larger mortgage loans (£1 million to £2 million) Despite the general trend for rising mortgage rates over the past week data compiler Moneyfacts research shows that the average two-year fixed mortgage rate has dropped by 0.37 percentage points over the past month The average rate now stands at 5.56%.  Volatile market conditions are prompting more lenders to increase fixed-rate mortgage deals the interest rates at which banks lend to each other have nudged up again as sentiment grows that interest rates will stay higher for longer Last week the Bank of England held its Bank Rate at 5.25% Halifax is increasing the cost of fixed rates across its range for new and existing customers (product transfer deals) from tomorrow (9 February) The bank will hike fixed rates on deals for larger sized loans Full details and new rates will be released tomorrow (9 February) NatWest is increasing selected two and five-year fixed residential purchase and remortgage rates from 9 February by up to 0.11 percentage point Product transfer deals for existing customers will also be increased by up to 0.15 percentage points First-time buyer deals at 90% loan to value will be pushed up by up to 0.11 percentage points The five-year fixed rate for purchase will be at 4.59% with a £995 fee and the two-year equivalent deal rises to 4.99% The bank’s lowest two-year rate for remortgage will be at 4.49% with a £1,495 fee and the equivalent five-year deal is still just below 4% at 3.99% Virgin Money is increasing a range of fixed rate exclusive deals the bank’s five-year purchase deal at 90% LTV with a £1,295 fee will be increased by 0.1 percentage point to 4.5% and five-year fixed remortgage deals at 60% LTV and 70% LTV will nudge up by 0.05 percentage points The lender is also increasing selected buy-to-let fixed rates and two three and five-year fixed rate product transfer deals by 0.05 percentage points Five-year remortgage rates for residential product transfer will start from 3.98%  (65% LTV) says: “Market Swap movement continues to increase each day and it won’t be long before those remaining sub-4% deals are no longer available TSB is also increasing its two-year fixed-rate deal for residential remortgage for borrowers with up to 25% equity in their home by 0.2 percentage points to 4.74% It is also increasing its two- and five-year fixed rates for first-time buyers and home purchase at 85% loan to value up to 90% LTV by 0.1 percentage point to 5.04% (two-year) and 4.74% (five-year) The bank has also hiked rates on a range of its two-year fixed product transfer deals for existing customers TSB has cut some rates (two and five-year purchase deals and five-year remortgage rates) for buy-to-let borrowers by up to 0.5 percentage points is withdrawing a range of residential mortgage products for new borrowers this evening and will increase the rates from 9 February.  The deals seeing an increase in cost include large loans (up to £2 million) at 80% and 85% loan to value with a £995 fee as well as three-year purchase deals for new build homes at 90% and 95% LTV Selected deals for purchase and remortgage at 80% LTV are also being increased The lender will also increase selected residential product transfer deals by up to 0.1 percentage point (75% to 90% LTV) while also cutting the rate on some larger loan product transfer deals at 85% LTV Santander has cut the cost of selected fixed rate deals for home purchase by up to 0.2 percentage points Its lowest five-year fixed rate for purchase falls to 3.94% with a £999 fee This is for borrowers with at least 40% cash deposit towards their purchase (60% loan to value) The equivalent five-year fixed rates for borrowers with a 25% deposit or 10% deposit are now priced at 4.14% (down from 4.24%) and 4.64% (down from 4.84%) respectively Two-year fixed rates have also been reduced Rates in this sector now start at 4.2% (down from 4.25%) also with a £999 fee at 60% LTV. Equivalent deals at 75% LTV and 90% LTV are now at 4.30% and 4.89% respectively the buy-to-let lending specialist will withdraw all mortgage deals available through brokers at 6pm on 6 February Deals will be relaunched on 7 February at higher rates The lender has said the rate changes will apply to residential owner-occupier BTL and product transfer deals (rates for existing customers looking to switch) A number of lenders are increasing the cost of residential fixed-rate deals as consensus grows that interest rates will stay higher for longer following last week’s decision by the Bank of England to hold the Bank rate at 5.25% HSBC has told brokers it will increase its two and five-year and 10-year fee-free remortgage fixed rates for borrowers with 40% equity or deposit At the same time it is reducing the cost of a range of its first-time buyer deals (at higher loan to values) and some product transfer fixed rates at higher LTVs (for existing customers) The bank’s five-year fixed rate for remortgage with a £999 fee has increased from 3.99% to 4.04% (60% LTV) and its 10-year fee-free deal at 75% LTV has risen from 4.39% to 3.79% Halifax has announced a cut to a range of its first-time buyer fixed rates at higher loan to value ratios from 6 February The bank’s five-year fixed rate for home purchase for borrowers with a 10% cash deposit is cut from 4.97% to 4.44% with a £999 fee The fee-free equivalent deal is cut from 5.11% to 5.06% The fee-free two-year fixed rate is now at 5.1% while the same deal with a £999 arrangement fee is cut to 4.84% But Halifax has also increased selected remortgage deals including an uplift to rates on larger mortgage loans shared equity deals and green mortgages by up to 0.12 percentage points Selected two-year product transfer deals (for existing customers) will also increase by the same amount Coventry building society has also given notice of rate withdrawals from 6 February It is increasing two and five-year fixed rates for new borrowers with a 25% deposit or equity or less (75% LTV) Nationwide building society and Virgin Money have both nudged up the cost of selected fixed-rate deals for residential purchase and remortgage borrowers It follows a number of lenders raising selected fixed rates over the past week Coventry building society and Co-operative Bank This is despite the Bank of England announcing that it is holding the main Bank interest rate at 5.25% today Nationwide is increasing rates for new borrowers by up to 0.3 percentage points from 2 February Its two-year remortgage rate will now start from 4.45% with a £1,499 fee and the five-year equivalent deal will start from 3.94% First-time buyer deals at 90% loan to value are now from 5% for a two-year fixed rate or 4.55% over five-years Its five-year 95% loan to value fee-free first time buyer deal is at 5.14% Virgin Money’s best two and five-year fixed rates for residential remortgage Its two-year remortgage rate at 70% LTV is now 4.69% with a £995 fee Five-year purchase rates now start from 4.09% with a £1,295 fee (up to 75% loan to value) But Virgin has also launched a new fee-free two-year fixed rate for home purchase for borrowers with just a 5% cash deposit Coventry building society has also released its new residential fixed rates for borrowers with 25% equity in their property following a rate rise announced yesterday (see stories below) The mutual is now offering a five-year fixed rate for remortgage (75% LTV) at 4.28% with a £999 fee Two year equivalent rates start from 4.42% At the same time the mutual has cut selected residential home purchase rates product transfers and fixed rates for new and existing BTL borrowers Co-operative Bank for Intermediaries and Coventry building society are increasing interest rates on fixed-rate mortgage deals as volatility creeps back into the market The Bank of England is expected to keep interest rates on hold at 5.25% when its monetary policy committee (MPC) meets tomorrow and the general market consensus now is that rates will remain higher for longer in 2024.  This has nudged the rates at which banks lend to each other – known as ‘swap’ rate – higher which in turn is feeding through to what customers are charged Barclays has increased selected fixed rates for existing borrowers looking for a product switch deal by up to 0.3 percentage points Its two-year fixed rate product switch deal has risen from 4.09% to 4.39% with an £899 fee (60% LTV) The equivalent deal at 75% LTV has risen from 4.3% to 4.6% The bank has also increased rates on its green mortgage range and deals under the mortgage guarantee scheme as well as loyalty rates for premier banking customers But at the same time Barclays has cut a range of deals for new customers including its five-year fixed rate for home purchase which has been reduced from 4.39% to 4.09% with a £899 fee (60% LTV) Co-operative Bank for Intermediaries has also increased selected product transfer deals for residential customers (including help to buy remortgage deals) But product transfer deals for existing buy-to-let borrowers have been cut by up to 0.78 percentage points Co-op’s five-year fixed rate product switch deals for residential remortgage now start from 3.94% with a £1,249 fee Coventry building society is increasing all fixed rates for residential customers remortgaging at 75% loan to value (borrowers with 25% equity in their property) from 1 February But selected residential home purchase fixed rates product transfers and fixed rates for new and existing BTL borrowers will be reduced In contrast to the mixed rate changes of some lenders TSB is slashing the cost of deals across its mortgage range by up to 0.85 percentage points from 1 February The bank is making cuts of up to 0.55 percentage points to its five-year fixed rate for remortgage as well as reductions of up to 0.4 percentage points on fixed rate first time buyer and shared ownership deals Its five-year fixed rates for remortgage now start from 4.19% with a £995 fee (60% LTV) Halifax is cutting selected fixed rates for remortgage will be on deals for larger mortgage loans (up to £2 million) shared equity and shared ownership deals and green mortgage products Selected product transfer deals will be cut by up to 0.46 percentage points The bank is offering a five-year fixed rate for remortgage at 4.19% with a £999 fee (60% LTV) NatWest has also announced the withdrawal of its two and five-year fixed rates for purchase and remortgage at 90% loan to value from 1 February A handful of five-year fixed rate buy-to-let deals will also be removed from the market Nick Mendes at broker John Charcol says: “While those at the top of best buys have seen margins slim in recent weeks there is still room for lenders such as TSB to make significant reductions Some lenders haven’t been as quick to pass on reductions so I expect there is still more to come from some lenders while markets have already priced in a ‘hold’ all eyes will be on the [Bank of England] Governor’s notes following the announcement Any negative sentiment there is likely to lead markets to delay pricing in any further rate reductions and that could mean a knock on for mortgage rates.” Skipton building society is cutting selected residential and buy-to-let (BTL) fixed rates by up to 0.46 percentage points from 31 January The biggest cut is on the lender’s five-year fixed rate BTL deal at 75% loan to value The society’s latest residential shared ownership deals include a fee-free two-year fixed rate (90% LTV) at 5.49% and an equivalent five-year fix at 5.19% These deals are available for purchase and remortgage A swathe of product transfer rates for existing Skipton customers are also being reduced This includes a five-year fixed rate at 60% LTV The mutual lender’s 100% loan to value Track Record mortgage has not been cut in this latest round of reductions It has already been cut twice since the New Year and is currently priced at 5.35% The Bank of England’s Money and Credit report shows that overall mortgage lending rose marginally at the end of last year Gross mortgage lending was £17.2 billion in December 2023 up from £16.4 billion in the previous month but the annual growth rate for net mortgage lending (gross advances minus mortgage debt repaid) was flat for the first time since March 1994 Net mortgage approvals (approvals net of cancellations) for house purchases rose from 49,300 in November to 50,500 in December.  Net approvals for remortgaging (which only capture remortgaging with a different lender) increased from 25,700 in November to 30,800 in December said: “There are signs that the Bank of England’s monetary policy is having the desired effect with a softening of consumer spending and confidence “While inflation is increasingly under control and nearing the Bank’s 2% target it looks as though we are heading into a period of nominal to flat growth requiring some government stimulus for the economy in early 2024 Virgin Money is offering a five-year fixed rate mortgage for home buyers which offers a penalty-free get-out option after just two years allowing borrowers to switch on to a lower fixed deal if rates have fallen It is fee-free and has a fixed rate of 5.14% for five years This is for buyers with at least a 15% cash deposit (85% loan to value) For borrowers with just 10% deposit towards their home purchase (90% loan to value) the rate is 5.27% Both deals offer £500 cashback to buyers on completion The innovative part of the plan is that borrowers are able to switch to another deal (either with Virgin or a new lender) after two years if desired because the five-year fixed rate has no early repayment charges (ERCs) after two years.  Virgin’s Fix and Switch five-year rate is not the cheapest available (Nationwide is offering a five-year fix at 4.14% at 85% LTV but it does offer flexibility for borrowers wary of committing to a fix of that duration The Fix and Switch borrower affordability assessment is made with regard to a five-year term rather than two which might mean the customer could potentially borrow more This is due to the fact that a five-year fixed rate offers longer-term stability for both borrower and lender meaning stress tests can be less stringent Nick Mendes at broker John Charcol says some customers might be willing to pay a higher rate in return for added flexibility: “Lenders typically compete on price or criteria but this deal from Virgin Money is a hybrid of both “Fixed rates are expected to reduce over the next few years Clients want stability but tend to opt for a two-year fixed rate as no one wants to be tied into a higher rate for longer than necessary “Having a five-year fixed rate deal with no early repayment charges after two years is a welcome move and another demonstration of how lenders are actively working to attract new business.” Lenders including Barclays and HSBC offer flexible tracker rate products that offer the opportunity to switch But Virgin’s Fix and Switch is the only residential five-year fixed rate with a penalty-free get-out clause albeit with the proviso that the switch must be to a Virgin deal offers a five-year fixed rate with no early repayment penalties on a buy-to-let mortgage deal Nationwide building society is slashing selected fixed rate mortgage deals by up to 0.81 percentage points will offer a five-year fixed rate for remortgage at 3.88% (60% loan to value) with a £999 fee and a five-year deal for home purchase at 3.85% (60% LTV) with a £1,499 fee It will also offer a five-year switcher rate It comes as other mainstream lenders Santander and Virgin Money have both withdrawn or increased their sub-4% fixed rates Virgin Money has reduced selected residential and buy-to-let mortgage rates by up to 0.65 percentage points including broker-exclusive remortgage rates and deals for larger loans (£1 million plus) But the lender has increased the rates on some of its most competitive residential home loan deals Its five-year deals now start from 4.09% for home purchase Santander has also announced it will increase selected fixed rates from tomorrow (24 January) Santander had been offering highly competitive five-year fixed rate deals at below 4% These market-leading rates are now expected to replaced with higher rates for home purchase and remortgage Among Virgin’s new remortgage broker rates it is offering a two-year fixed rate at 4.64% (60% loan to value) with a £995 fee The bank is also offering two and five-year fixed rates for purchase or remortgage at 75% loan to value starting from 4.37% with a £1,995 fee Buy-to-let deals have seen the biggest rate cuts (of up to 0.65 percentage points) in this latest round of reductions by Virgin Two-year fixed rates with a 1% fee are cut by the full 0.65 percentage points to start from 4.64% (60% LTV) Two-year deals with a 3% fee are cut by 0.45 percentage points to 3.87%.  Five-year BTL rates with a 1% and 3% fee now start from 4.34% and 3.87% respectively Barclays is slashing the cost of a wide range of its fixed-rate mortgage products for new and existing residential and buy-to-let borrowers.  The move follows significant rate cuts by most of the biggest mortgage lenders since the start of the year Rates for new Barclays customers will be cut by up to 0.5 percentage points while existing customers will see fixed rate switcher products cut by up to 0.6 percentage points The lender will offer a two-year fixed rate for residential remortgage at 4.12% with an £899 fee (75% LTV) a two-year fixed rate for home purchase at 4.09% with an £899 fee (60% LTV) and a five-year fixed rate for remortgage at 4.47% with a £999 fee (60% LTV) Barclays has a two-year fixed rate for purchase at 5.68% with a £1,295 fee (75% LTV) and a five-year fixed rate for remortgage at 4.60% with a £1,795 fee (75% LTV) Santander has unveiled a range of lower mortgage rates following its announcement yesterday that it was making a fresh round of cuts The Spanish-owned lender is offering a five-year fixed rate for residential house purchase priced at 4.44% for a £999 fee for borrowers with a 10% cash deposit The equivalent two-year fixed rate is priced at 4.87% Fixed rates for residential remortgage are priced at 5.4% (85% LTV) with a £999 fee over two years The bank’s best-buy five-year fixed rate deal for remortgage (60% LTV) is unchanged at 3.89% with a £999 fee Leeds building society has cut selected fixed rates for new customers by up to 0.37 percentage points following fellow mutual lenders Coventry and Skipton The building society is offering a competitive two-year fixed rate for residential remortgage at 4.43% with a £999 fee (65% LTV) It also has a two-year fee-free deal at 4.59% (up to 95% LTV) and a five-year equivalent at 5.26% Metro Bank has reduced selected residential and buy-to-let fixed rates and launched a five-year fixed rate 95% loan to value deal at 5.79% Two-year fixed rates at 80% LTV start from 4.99% and five-year rates (also 80% LTV) now start from 4.79% TSB has cut selected fixed rates for new residential and buy-to-let customers as well as product transfer deals for existing customers The bank is offering a two-year fixed rate deal for home buyers at 4.79% with a £999 fee (85% LTV) and a five-year equivalent deal at 4.64% It is also offering two-year rates from 4.59% for BTL remortgage borrowers Skipton building society is making further reductions of up to 0.27 percentage points to selected fixed rate mortgage deals for new customers across its range including a cut to its 100% mortgage rate for first time buyers It comes just one week after it slashed the cost of a range of its products by up to 0.49 percentage points (see stories below).  The latest changes will be effective from tomorrow (18 January) and will see, among other rate cuts, the mutual lender’s 100% loan-to-value Track Record mortgage cut from 5.52% to 5.35% The Track Record mortgage is for first-time buyers who do not have a cash deposit but who can demonstrate they have successfully made rental payments for the past 12 months Affordability and loan size calculations are based on past rental payments Skipton’s biggest rate cut is on its two-year fixed rate for purchase or remortgage at 75% loan-to-value Five-year rates at higher LTVs have also been reduced Skipton is offering a five-year fix for home purchase at 4.96% (95% LTV) with a £1,295 fee It also has a fee-free five-year deal at 90% LTV for purchase or remortgage at 4.84% Mortgage brokers believe today’s slight rise in inflation could prevent the best fixed rate mortgage deals from falling much lower The lowest two-year rates are currently at around 4.42% while five-year fixed rates are around the 3.89% mark David Hollingworth at London & Country Mortgages said: “Swap rates [the rates at which banks lend to each other] have nudged up slightly but so far no higher than levels that have already been seen in recent weeks. We will have to see what happens but clearly it won’t add weight to the calls for imminent rate cuts by the Bank of England.  “I think we’ll still see cuts in fixed rates and some lenders are trying to keep up with the best-buy deals If we see swaps edge up that could underline that fixed rates may not keep falling below the current best rates.”  by up to 0.45 percentage points from tomorrow (18 January) It last cut its fixed rates on 10 January.  The bank will reduce the rates of a range of residential fixed rate products as well as new-build and selected first-time buyer deals Santander has some of the most keenly-priced deals on the market including a five-year fixed rate for remortgage at 3.89% Its latest rates will be unveiled tomorrow Coventry building society is also cutting rates again for new residential and buy-to-let borrowers The new rates will be available from tomorrow (18 January) State Bank of India is cutting fixed rates across its buy-to-let lending range by up to 0.5 percentage points It will offer a two-year standard BTL fixed rate at 3.65% (50% LTV) Standard BTL five-year rates start from 4.95% For a lower fee of 2% the rates rise to 4.85% and 5.25% (two- and five-year fixed respectively).  including for ex-pat and non resident borrowers and for properties with multiple occupancy (HMOs) are also set to be cut HSBC has cut selected residential fixed mortgage rates by up to 0.4 percentage points and is offering a competitive fee-free five-year fixed rate at 4.99% for home buyers with just a 5% cash deposit Among its other new rates is a two-year fixed rate for home purchase for borrowers with a 20% cash deposit at 4.78% with a £999 fee The bank has also cut its five-year fixed rate product transfer deal (for existing customers looking to switch to a new fixed rate) at 3.79% (for customers with at least 40% equity in their property – 60% loan to value).  But HSBC has not reduced its five-year fixed remortgage deal for new customers NatWest and Virgin Money all have lower five-year remortgage deals at 3.89% 3.89% and 3.84% respectively (see stories below) NatWest has also slashed its residential and buy-to-let fixed rates for new and existing customers taking its best deals below 4% in line with its competitors It is offering a five-year fixed rate for residential remortgage at 3.89% with a £1,495 fee (at 60% LTV) bringing it in line with Santander’s market-leading five-year remortgage fixed rate NatWest’s two-year equivalent deal is now priced from 4.44% with a £1,495 fee (60% LTV) It is also cutting the cost of deals for first-time buyers Swap rates – the rates at which banks lend to each other – have nudged back down in recent days following rises last week amid general market jitters the overall outlook for interest rates remains positive meaning mortgage rates could continue to fall in the short term before stabliising Nick Mendes at broker John Charcol said: “We are returning to five-year swap rates at around 3.5% HSBC has been quick to react to competitor re-pricing last week with this latest cut to fixed rates This should further strengthen its hold in the market and capitalise on the New Year wave of optimism around rates for the mortgage market.” has cut selected fixed rates for new and existing buy-to-let borrowers by up to 1.2 percentage points Among its new rates the mutual lender will offer a two-year fixed rate for home purchase or remortgage at 3.69% with a 3% fee (65% LTV) and a five-year equivalent deal at 3.94% (55% LTV) Principality building society is cutting selected residential fixed rates (75% LTV up to 90% LTV range) by up to 0.34 percentage points Two-year rates will start from 4.49% with a £895 fee at 75% LTV) and equivalent five-year rates start from 4.28% with a £1,395 fee The mutual lender will also cut buy-to-let rates by up to 0.1 percentage point Aldermore has reduced selected fixed rates and introduced residential fixed rates at 95% loan to value (90% LTV for new builds) It has also cut rates on a range of its buy-to-let mortgage deals and product transfer deals for existing customers The Mortgage Lender (TML) has cut selected residential and BTL rates by up to 0.35 percentage points and is offering a five-year fixed rate for standard BTL remortgage at 5.16% with a 3% fee has cut residential fixed rate deals by up to 0.96 percentage points It is offering a two-year fixed rate at 7.49% at 90% loan to value Co-operative Bank for Intermediaries has pulled its most competitive sub-4% fixed rate mortgage deals in the wake of rising bank swap rates indicating fixed rates may stabilise at current levels or may even edge up which has offered a five-year fixed rate deal at 3.89% (60% loan to value) for residential purchase and remortgage since 5 January (see stories below) is set to remove this deal from the market Co-op still offers some sub-4% deals but only to borrowers with a mortgage loan size of £750,000 or more The new five-year fixed rate for smaller mortgages starts from 4.02% with a £999 fee (this rate is available up to 90% LTV) and there is a fee-free deal at 4.28% The specialist buy-to-let lender Lendinvest has also announced it is removing its deals from the market today with a view to repricing its fixed rates higher from Monday (15 January) due to market volatility the interest rates at which banks lend to each other in the market and which dictate the movement of fixed mortgage rates for customers have been steadily rising in recent days.  It means that although many lenders have been aggressively cutting fixed rates since the new year Virgin Money and Yorkshire building society are among lenders all still offering five-year fixed rates (either for home purchase have continued to reduce the cost of their mortgage deals this week Coventry building society has cut residential fixed rates by up to 0.2 percentage points and buy-to-let rates by up to 0.22 percentage points The mutual lender is offering a five-year fixed rate for residential remortgage from 4.29% (65% LTV) with a £999 fee the specialist buy-to-let lender has cut fixed rates by up to 0.4 percentage points and has deals at sub-4% It is offering a two-year fixed rate at 3.94% (up to 65% LTV) although there is a high 6% arrangement fee Fleet Mortgages has tweaked rates down across its standard BTL range as well as deals for limited companies and houses for multiple occupancy (HMOs) by up to 0.15 percentage points Its standard BTL two-year fixed rate for individual landlords at 75% loan to value is now 4.89% with a 3% fee and a five-year fix at 70% LTV is at 4.59% with a 5% fee Nick Mendes at broker John Charcol said: “Expect to see a few lenders over the next few days reevaluate their fixed rate pricing due to recent market movement.  “I’m not expecting to see a very sharp uplift in fixed rate pricing but there is likely to be an increase of a few percentage points to give lenders comfort in the event of future market movement.  “It will be interesting to see how long the high street lenders that have priced best buy fixed rate deals at sub-4% in the past week hold out before pulling deals.” David Hollingworth of London & Country Mortgages said: “The sub-4% rates will have seen strong demand and lenders have to closely manage their business volumes as well as pricing It doesn’t necessarily mean that we will see an immediate turnabout by all lenders and service will no doubt have been a key factor in Co-operative’s decision to withdraw.   “However it does serve as a useful reminder that the recent rate cuts that have been feeding through are not guaranteed to be a permanent fixture.” Yorkshire building society has cut selected fixed rate mortgage deals by up to 0.65 percentage points and will offer a five-year deal for purchase and remortgage at 3.99% Among its other new rates the mutual lender will offer a two-year fixed rate also for home purchase or remortgage at 4.49% Both this deal and the new five-year fixed rate are on offer to borrowers with 25% equity in their home or cash deposit for purchases and there is a £1,495 fee said: “The markets have responded very positively to the surprise fall in inflation before Christmas and we’ve seen significant falls in market interest rates since then.  “We’re seizing the opportunity this presents to continue passing on as much value as possible to borrowers Other new deals from Yorkshire include a fee-free two-year fix at 5.14% for borrowers with 20% equity or deposit and a fee-free five-year deal at 4.79% for homebuyers with just a 10% cash deposit Other lenders have continued to nudge down rates this week: Virgin Money has reduced selected fixed rates for the second time in a week available exclusively through brokers for new and existing customers have been cut by up to 0.8 percentage points Virgin is offering a two-year fixed rate for remortgage with an eye-catching rate of 4.24% but it has a hefty 1% fee which won’t suit all borrowers Homeowners must have at least 40% equity in their property for this deal The equivalent deal for borrowers with 30% equity has a pay rate of 4.39% Two and five-year fixed rates for home purchase with a £1,295 fee have also been reduced and now start from 4.47% and 3.92% respectively Selected fixed rates for existing Virgin customers looking for a new mortgage deal (product transfer) have been tweaked downwards Five-year fixed rates start from 3.88% with a £1,495 fee (65% LTV) By way of comparison the market-leading five-year deal for remortgage (available to new customers) is currently on offer from Santander at 3.89% with a £999 fee MPowered Mortgages has cut the cost of its three-year fixed rate deals by up to 0.22 percentage points Deals for home purchase at 60% loan to value now start from 4.37% (previously 4.59%) with a £1,999 fee while equivalent remortgage deals start from 4.46% with the same fee has reduced selected deals by up to 0.5 percentage points Its standard BTL five-year fixed rate (for borrowers with good credit) is now at 4.79% with a 6% fee It is also offering a two-year fixed rate for landlords of houses in multiple occupation (HMOs) at 5.34% with a 3% fee the specialist lender which caters for borrowers with poor credit scores has lowered selected fixed rate deals and extended its residential lending up to 80% loan to value start from 5.44% for a five-year fixed rate with a £995 fee Skipton building society has reduced the cost of a swathe of its mortgage products by up to 0.49 percentage points This includes the lender’s flagship Track Record mortgage –  a zero-deposit deal for first-time buyers – which has been pegged down to 5.52% from 5.65% which are effective for new borrowers from tomorrow (11 January) will see the mutual lender offer a five-year fixed rate for remortgagers priced at 4.99% for for a 10% deposit (or 90% LTV) at a £1,295 fee and a two-year deal (fee-free) for shared ownership mortgages at 5.79% (also 90% LTV) Skipton is also cutting product transfer deals for existing customers by up to 0.66 percentage points The lender’s Track Record mortgage is aimed at first-time buyers and those who have not owned a home for at least the past three years It is fee-free and available at up to 100% of the property value borrowers must be able to demonstrate they have successfully made rental payments for the past 12 months Mortgage affordability is then calculated on this cost an applicant who has paid monthly rent of £1,500 could borrow up to around £275,000 according to Skipton – as it would make their monthly mortgage repayments roughly the same as their previous rental payments.  the specialist lender of Yorkshire building society has announced cuts of up to 0.56 percentage points on its residential mortgage range from tomorrow (11 January) It follows cuts of up to 0.95 percentage points to its buy-to-let range Among its new residential deals Accord will offer a five-year fixed rate for remortgage at 4.95% (90% LTV) with a £995 fee plus £500 cashback and a two-year rate for home purchase at 4.73% (75% LTV) with a £1,995 fee Pepper Money has made cuts across its entire mortgage range by up to 0.98 percentage points which caters to borrowers with a non-standard or adverse credit history is offering a five-year fixed rate priced at 6.39% (75% LTV) with a £1,495 fee under its Pepper18 Light product it’s only available to customers who have not had a debt default in the last 18 months has cut its two-year fixed rates by up to 0.55 percentage points and five-year fixed rates by up to 0.65 percentage points Two-year deals start from 4.8% with a 5% fee while five-year deals start from 5.3% with the same fee (both at 65% LTV) specialist buy-to-let lender Keystone Mortgages has bucked the trend by increasing selected home loan rates The lenders says: “Due to the recent volatility of swap rates we have repriced and increased all five-year fixed rates by 0.10% and our product transfer and Switch & Fix rates have increased by 0.20%.” Santander has announced it is cutting selected fixed rate deals by up to 0.82 percentage points from tomorrow (10 January) and will offer a market leading five-year deal for residential remortgage at 3.89% will apply on a range of residential and buy-to-let borrowing deals for new customers and on product transfer rates for existing customers But as well as the table-topping five-year remortgage deal Santander has said it will offer a similar deal for home purchase at 3.94% Both five-year fixed rates will have a £999 fee and be available for borrowers with at least 40% equity in their home Santander is the latest of several major lenders to trim the cost of fixed rate deals since the start of the year (see stories below) on the back of growing market confidence that interest rates have peaked Barclays has also announced cuts of up to 0.5 percentage points on selected purchase fixed rates The reductions take the cost of the lender’s two-year fixed rate for purchases down to 4.17% (from a previous 4.62%) with a £899 fee and 40% deposit The same deal for borrowers with a 25% deposit (75% LTV) has been reduced to 4.2% (from 4.7%) Barclays has also cut its two-year fix under its Deposit Guarantee Scheme to 5.5% from 5.8% has no fee and is available on loans up to £570,000 The five-year fix equivalent under the scheme has been reduced to 6.27% plus a succession of smaller and specialist mortgage lenders have reduced their fixed mortgage rates in the wake of last week’s price war among major lenders (see stories below) which saw five-year fixed rates fall under 4% for the first time in more than seven months High street lender Virgin Money has announced changes to its residential purchase rates including rate cuts at higher loan to value ratios From tomorrow (9 January) it will offer a two-year fixed rate for home purchase at 4.57% (65% LTV) with a £1,295 fee It is also offering a five-year fix for home purchase at 4.48% (90% LTV) with a £1,295 fee The bank’s remortgage exclusives with a 1% fee will be cut by up to 0.25 percentage points with five-year rates starting from 4.34% and BTL exclusive remortgage deals will start from 4.32% Bank of Ireland has slashed the cost of all residential mortgage rate deals The bank is offering two-year fixed rates from 4.45% and five-year deals from 4.19% Both deals are at 60% LTV and have a £1,495 fee the specialist lending arm of Yorkshire building society,the ninth biggest lender has announced it is cutting buy-to-let fixed mortgage rates for new customers by up to 0.95 percentage points from tomorrow (9 January) The lender will cut two-year fixed rates for BTL remortgage and purchase by up to 0.5 percentage points three-year rates will be cut by up to 0.7 percentage points while selected five-year rates will be reduced by up to 0.95 percentage points New rates and deals will be unveiled tomorrow Newcastle building society has cut selected fixed rates by up to 0.65 percentage points The mutual’s five-year fixed rates for remortgage now start from 4.65% (max 80% LTV) with a £999 fee Principality building society has reduced selected residential and BTL fixed rates by up to 0.37 percentage points will see cuts in the cost of borrowing between 75% loan to value and 95% loan to value It is offering a fee-free five-year fixed rate at 5.15% (85% LTV) There are also cuts to rates on mortgages for holiday lets Suffolk building society has cut selected BTL and holiday let mortgage rates and reintroduced residential deals at 95% loan to value It will offer two and three-year fixed rates for borrowers with just a 5% deposit or equity at 6.15% The mutual will also offer a five-year fixed rate for BTL remortgage at 5.69% (80% LTV) has cut residential fixed rates by up to 1.0 percentage point which cater for borrowers with a non standard credit history start at 5.69% for a five-year deal or 5.99% over two years The lender has also increased its maximum loan to value from 75% up to 90% Paragon Bank has cut rates by up to 0.7 percentage points on its five-year fixed-rate BTL mortgage deals The specialist BTL lender is offering five-year fixed rate deals from 4.5% with a 5% fee The most energy efficient properties (energy performance certificate rating A to C) can get five-year rates from 4.45% and HMOs (houses in multiple occupation) can get rates from 4.7% Co-operative Bank for Intermediaries has slashed its fixed rate mortgage deals by up to 1.07 percentage points in response to the ongoing rate war in the home loans market available through brokers from Tuesday (9 January) is a five-year fixed rate for home purchase or remortgage at a market leading rate of 3.89% with a £999 fee this deal is on offer only to borrowers with at least 40% equity in their property or cash deposit to put towards their purchase Clydesdale Bank and Leeds building society in reducing the cost of mortgage borrowing since the new year Co-op has said it will also offer a fee-free two-year fixed rate at 5.18% for borrowers with just a 5% cash deposit or equity in their home Borrowers get £250 cashback on completion.  Other deals include a fee-free five-year fixed rate at 4.28% at 90% loan to value with £500 cashback on completion The lender is also offering a five-year fixed rate product transfer deal (for existing customers looking to switch to a new rate) at 3.79% with a £749 fee (60% LTV) Broker Nick Mendes at John Charcol says: “Co-op has made a statement of intent to kick off the year with some impressive rate pricing A five-year rate at 3.89% makes it the new market leader Its product transfer rates are equally impressive for existing customers.” two-year fixed rates for residential remortgage from 4.64% (60% LTV) with a £1,495 fee and equivalent five-year deals from 4.58% rates start from 4.55% over two-years or 4.19% over five-years NatWest has also reduced rates for buy-to-let borrowing plus on its product transfer range (deals for existing customers looking for a new rate) has also cut selected rates from today (5 January) it is offering a two-year fixed rate for residential remortgage at 4.85% (65% LTV) with a £1,488 fee and an equivalent five-year deal at 4.60%.  Rates for home purchase start from 4.61% over two years or 4.27% for five years MPowered mortgages has reduced fixed rates across its range It is offering two-year fixed rates for residential remortgage from 4.54% and five-year deals from 4.13% Bank of England’s latest Money and Credit Report shows net mortgage approvals for house purchases rose from 47,900 in October 2023 to 50,100 in November Net approvals for remortgaging also increased from 24,000 in October to 27,000 in November suggesting resilience in the housing market towards the end of 2023 First Direct is following its parent bank HSBC with significant rate cuts across its fixed-rate repayment mortgage range including the launch of two deals tomorrow (Friday) kicked off the first of the New Year’s rate reductions continuing a market trend from 2023 (see stories below).  Lenders are optimistic that the Bank of England will begin to trim its Bank Rate (currently 5.25%) in the coming months leading to lower borrowing costs for homebuyers and homeowners remortgaging The lowest rates announced by First Direct will apply to its longer-term fixed rate deals.  Its five-year fix is repriced down to 3.99% from 4.64% while its 10-year fix is reduced by a chunky 98 percentage points from 4.97% also to 3.99% Both deals require a 40% deposit and are available to new and existing customers For shorter-term two- and three-year fixes rates are now priced below 5% for two at loan-to-values (LTVs) of up to 85% (15% deposit) Rates begin at 4.54% for new customers and 4.49% for existing customers switching deals Existing customers with an offset mortgage will see a 0.19% reduction in the rates across the range of two-year deals First Direct deals either carry no booking fee or a fee capped at £490 TSB is also cutting rates for a range of mortgage products with a two-year fixed term These will be on sale from Friday 5 January Among the reductions is an interest rate fall of 0.55% on two-year first-time buyer and home mover loans which now start at 4.54% for LTVs up to 60% with a £995 fee.  Two-year remortgages are being reduced by up to 0.40% Rates now start at 4.44% for an LTV up to 60% with a £995 fee.  HSBC has cut selected fixed rates across a broad range of its residential and buy-to-let (BTL) home loans from today as experts predict a growing price war could push mortgage rates lower The move – which includes deals below the psychologically important 4% level – follows rate reductions yesterday by Halifax and Leeds building society (see story below) for new customers looking for a residential or BTL remortgage deal It has also cut rates for international residential remortgage and on product transfer deals (new rates for existing HSBC customers) across BTL and residential loans.  It is offering two-year residential remortgage rates from 4.49% and five-year equivalent deals from 3.94% both with a £999 fee. Ten-year fixed rates also start from 3.99% These deals are all available for borrowers with at least 40% equity in their property Nick Mendes at broker John Charcol said: “HSBC is the latest high street lender to reprice downwards following similar changes in the market in recent days.  “Lenders are looking to capitalise on the pent-up purchase demand and to grab borrowers coming to the end of their fixed rate in the first half of 2024 so we should expect to see a continued rate battle between lenders.” has slashed rates on remortgage products by up to 0.83 percentage points New deals include a two-year fix priced at 4.81% (reduced from 5.64%) available at 75% loan to value or 4.68% (reduced from 5.25%) at a 60% loan to value Borrowers with small deposits also benefit with Halifax cutting its 90% loan to value five-year fix from 5.68% to 5.27% The deals are available through brokers or directly from the lender Applicants have a full six months to complete the deal from the point of offer for borrowers already with Halifax and looking to switch deals Barclays is cutting selected fixed rate mortgage deals by up to 0.43% across residential and buy-to-let borrowing The lower rates are available for new customers The bank is offering a two-year fixed rate for home purchase at 4.62% with a £899 fee This is available to buyers with at least 40% cash deposit (60% loan to value) Barclays has two-year fixed rate deals from 4.98% with a £999 fee (60% LTV) Premier banking customers can get the same deal at a slightly lower rate of 4.95% It is also offering a five-year fixed rate for home purchase or remortgage at 4.32% with a £1,999 fee But this deal is only available for large loans (£2 million up to £10 million) at 60% loan to value Barclays is offering a fee-free five-year fixed rate for remortgage at 5.33% (60% LTV) and an equivalent fee-free two-year equivalent at 6.3%.  Virgin Money is cutting selected fixed rates for new and existing customers by up to 0.36 percentage points from tomorrow (14 December) A number of smaller lenders have also cut fixed rates as the market now widely expects the Bank of England’s Monetary Policy Committee will keep the Bank Rate rate at 5.25% when it meets tomorrow is a two-year fixed rate for residential remortgage at 4.59% The rate is market-leading for a two-year fixed rate remortgage but it requires borrowers to have at least 40% equity in the property An equivalent deal at 70% loan to value (requires at least 30% equity in the property) will fall to 4.69% Virgin is offering a five-year fixed rate for BTL remortgage at 4.74% (60% LTV) with a 1% fee Alternatively there is a five-year fixed rate for remortgage at 4.59% (also 60% LTV) with a £2,195 fee Skipton building society is cutting selected fixed-rate deals for existing residential and buy-to-let customers from tomorrow (12 December) The mutual lender has cut rates on 16 product transfer deals For residential customers it is offering a five-year fix at 4.65% with a £1,295 fee (60% LTV).  It is also offering a five-year fix for existing BTL customers at 5.24% and a two-year deal at 5.99% (both 75% LTV) Skipton has also reinforced its commitment to helping first-time buyers and those with small (5%) deposits onto the property ladder by introducing mortgage deals at 95% loan-to-value (LTV) for the purchase of new build flats.  the mutual would not lend at this high LTV for new build flats due to the higher risks associated with new builds due to their price volatility It follows Skipton’s launch of its Track Record mortgage in May This home loan can be taken at 100% loan to value (with no deposit) by borrowers who have a proven track record of making rental payments for at least 12 months Tenants have paid more than £85 billion in rent over the past year according to a report from estate agent Hamptons It is more than double the amount spent on rent in 2010 when the figure reached £40 billion.  The increase has been driven by a 25% increase in the number of households who are renting as well as the rise in rents which in turn has been caused by higher landlord mortgage costs The average rent on a newly let property increased to £1,348 per month in November This is £125 more than in the same month last year (a 10.2% uplift).  where the average monthly rent is now at £3,174 Santander has cut fixed rates for residential and buy-to-let borrowers by up to 0.32 percentage points The reductions apply to both purchase and remortgage deals and are available to new and existing customers Among its new deals Spanish-owned Santander is offering a five-year fixed rate for home purchase at 4.39% with a £999 fee It is available to borrowers with at least a 40% deposit towards their purchase the deal is trumped by Nationwide’s five-year fix which is priced at 4.29% for purchases (see story below) Santander is offering five-year fixed rates for remortgage customers from 4.71% three-year rates from 4.96% and two-year rates from 4.92% Buy-to-let rates for standard remortgage now start from 4.71% for a five-year fix and 5.17% for a two-year fix (60% LTV) Co-operative Bank for Intermediaries: (formerly Platform) has slashed rates on residential and BTL deals for new and existing customer deals by up to 0.45 percentage points Among its deals is a five-year fixed rate for residential remortgage (60% LTV) at 4.68% with a £1,999 fee Equivalent two-year rates start from 4.87% Halifax for Intermediaries has unveiled its new fixed rates following a rate cut yesterday (7 December) It is offering a five-year fix for home purchase at 4.37% with a £999 fee (60% LTV) Among its remortgage deals it is offering two-year fixed rates from 5.25% three-year and five-year deals both from 4.97% All deals are available at a 60% LTV and come with a £999 fee The latest round of cuts come less than a week before the Bank of England next meets (14 December) to decide on interest rates Nationwide building society is cutting selected fixed rates by up to 0.31 percentage points from tomorrow (8 December) Among its new rates it will offer a five-year fix for home purchase at a market-leading rate of 4.29% which has been reduced by 0.14 percentage points is available to home buyers with at least 40% deposit and has a £999 arrangement fee The mutual’s equivalent two-year fixed rate for home purchase will start from 4.65% Nationwide has also cut fixed rates for remortgage (although these rates are not market-leading) with five-year fixed rates from 4.68% with a £999 fee (60% LTV) for existing borrowers looking to switch to a new deal the specialist buy-to-let lending arm of Nationwide has also announced rate cuts of up to 0.4 percentage points across its range It is offering two-year fixed rates for BTL purchase or remortgage at 4.19% with a 3% fee (65% LTV) Halifax for Intermediaries is cutting selected fixed rates by up to 0.25 percentage points But its new deals will not be unveiled until the morning says: “Nationwide has released what could be the final best buy rate for the year This puts it firmly ahead of the competition in a strategic move to ensure they remain in pole position.” Yorkshire building society has announced rate reductions of up to 0.35 percentage points across its fixed rate range The biggest rate cuts are for borrowers with the smallest cash deposit or equity in their home.  The society is offering two and three-year fixed rates deals for remortgage at 4.84% (75% loan to value) with a £1,495 fee and a five-year fixed rate for home purchase at 90% LTV at 5.24% This deal has no fee and pays £2,000 cashback on completion The Bank of England has forecast that 900,000 borrowers will experience ‘severe mortgage rate shock’ in 2024 when their existing fixed rate deals come to an end.  These households will see their monthly mortgage payments rise by more than £500 20% will see monthly payments rise by more than £1,000 in the Bank’s latest Financial Stability Report for the typical residential mortgage holder coming off a fixed rate deal between the second quarter of 2023 and the end of 2026 their monthly mortgage repayments are set to rise by around £240 First Direct is slicing the cost of its fixed rate mortgage deals with the biggest cut – 0.45 percentage points – applied on deals for borrowers with just a 5% deposit or equity (95% LTV) which only offers mortgages direct and not through brokers has reduced its two-year and three-year fixed rates at 95% LTV to 5.99% This is down from 6.44% and there is no arrangement fee The equivalent deal over five years is now priced at 5.64%.  Deals at 90% loan to value have been slashed by up to 0.3 percentage points and start from 5.09% for a five-year fix First Direct is offering a five-year fixed rate deal for new and existing customers with at least 40% equity or deposit at 4.64% with a £490 fee has cut selected buy-to-let rates by up to 0.3 percentage points The intermediary-only lender is offering a two-year fixed rate at 4.79% (down from 4.94%) for BTL purchase at 60% LTV Over a five-year term Accord is offering a rate of 4.99% (down from 5.19%) at 75% LTV for BTL remortgage Online property portal Rightmove says it expects average asking prices for properties coming to market to be 1% lower by the end of 2024 as the market continues to move back to ‘more normal’ levels of activity after the pandemic period Rightmove predicted average new seller asking prices would drop by 2% in 2023 and they are now 1.3% lower year-on-year.  Rightmove says mortgage rates will settle in the New Year but will remain elevated and this is likely to have a dampening effect on buyers’ budgets.  Barclays Bank is cutting fixed rates for residential property purchase from tomorrow (1 December) which will include a market-leading five-year deal at 4.39% The deal will be available to home buyers with at least a 40% cash deposit and there is an £899 arrangement fee Barclays will also offer a fee-free five-year fixed rate for home purchase at 4.7% (75% loan to value) and a five-year fix at 4.95% (90% LTV) with a £999 fee which has just launched a range of remortgage Among its highlights the bank is offering a five-year fixed rate for purchase at 4.42% (65% LTV) wth a £1,295 fee.  A product transfer is where an existing customer switches products within the Virgin range Virgin has unveiled six remortgage exclusives at 60% and 70% loan to value Among the new deals is a two-year fixed rate at 5.12% (70% LTV) with a £999 fee and a fee-free five-year fix at 4.8% (60% LTV) Virgin is also offering new purchase exclusive deals with £500 cashback on completion They include a two-year fixed rate at 5.23% (86% LTV) with a £1,295 fee and a five-year equivalent deal at 4.69%.  Selected residential and buy-to-let product transfer deals have been cut by up to 0.18 and 0.2 percentage points respectively and selected buy-to-let fixed rates for new borrowers have been cut by up to 0.28 percentage points Aldermore is cutting selected residential and buy-to-let fixed rates for new and existing customers from tomorrow (1 December) Among its new deals is a five-year fixed rate for individual and company landlords (for single residential BTL properties) at 4.69% with a 7% fee (65% LTV) Newcastle building society has reduced selected buy-to-let fixed rates by up to 0.36 percentage points It is offering a five-year fixed rate at  5.55% (80% LTV) and equivalent two-year deals from 5.85% Nationwide building society has reduced fixed rates on selected product switcher deals (rates for existing customers looking for a new deal) and further advances by up to 0.31 percentage points It is offering two-year fixed rates from 4.82% (60% LTV) with a £999 fee and five-year fixed rates at 5.3% (95% LTV) with a £999 fee NatWest is cutting product switcher rates by up to 0.26 percentage points on residential deals and up to 0.4 percentage points on buy-to-let deals It is offering two-year fixed rates from 4.98% and five-year fixed rates from 4.79% (60% LTV) with a £995 fee the specialist buy-to-let lender has cut selected fixed rate deals by up to 0.8 percentage points Standard BTL deals start from 4.65% for a two-year fixed rate and from 5.75% for a five-year fix Santander has confirmed its new mortgage rates The bank is offering a five-year fixed rate for home purchase from 4.64% and equivalent deals for remortgage from 4.83% Its lowest two-year fixed rate for purchase has fallen from 4.99% to 4.94% and its lowest two-year fixed rate for remortgage is now at 5.09% These five-year and two-year fixed rate deals from Santander are all available to borrowers with at least a 40% cash deposit or equity (60% loan to value) The five-year fixed rate for remortgage at 85% LTV is now priced at 5.44% with a £999 fee The bank is offering three-year fixed rates for remortgage from 4.99% with a £999 fee (60% LTV).  Coventry building society is cutting rates across its mortgage range again from tomorrow (30 November) says: “This week is starting to feel like the last push for lenders to secure the remaining opportunities before the winter break Over the next fortnight I expect to see lenders reprice one last time before they turn their attention towards the new year “The past week has seen a raft of repricing from high street lenders and building societies with the latest notice coming from Coventry Given how competitively Coventry is currently priced this latest reprice could be the moment we see another sub-4.5% deal.” Mortgage approvals for house purchases increased to 47,400 in October according to the latest figures in the Bank of England’s Money and Credit report Approvals for remortgaging also increased from 20,600 in September to 23,700 in October The number of remortgages had fallen in previous months as more borrowers decided to take a product transfer deal with their existing lender This option can be attractive when rates are rising as the customer does not need to undergo a full affordability assessment.  The increase in remortgage activity last month is perhaps an indicator of an improving mortgage market for borrowers says: ‘Mortgage approvals rose as the pause in interest rate hikes [by the Bank of England] gave borrowers hope that rates may have peaked.” NatWest has slashed selected fixed rates by up to 0.4 percentage points for residential deals and up to 1.06 percentage points on buy-to-let borrowing It is offering a five-year fixed rate for residential home purchase at 4.47% available for home buyers with at least 40% cash deposit (60% loan to value) But though it breaks the psychological 4.5% rate barrier it is not market leading as Nationwide building society has claimed top spot with a similar deal at 4.43% with a £999 fee Nick Mendes at broker John Charcol said: “NatWest is the latest lender to reprice purchase rates closer to the 4.5% benchmark but it has not surpassed Nationwide’s rate This latest reprice brings NatWest closer to HSBC and Virgin NatWest is also offering two-year fixed rates for residential remortgage from 4.87% and five-year equivalent fixed rates from 4.73% Santander for Intermediaries is cutting selected fixed rates for new and existing customers by up to 0.29 percentage points The new deals will be unveiled and live from tomorrow (29 November) buy-to-let deals and rates for new build mortgages are all set to get a haircut Fixed rates for residential product transfer (for existing customers looking for a new deal) will be cut by up to 0.1 percentage point while BTL transfer deals will be cut by up to 0.17 percentage points Bank of Ireland has reduced selected deals in its Bespoke range these include a two-year fixed rate for purchase or remortgage at 4.97% with a £1,495 fee (60% LTV) or an equivalent five-year fixed rate deal at 4.69% the buy-to-let arm of Nationwide building society has cut selected fixed rates by up to to 0.3 percentage points The reductions apply to limited company buy-to-let mortgages and lending for houses in multiple occupation (known as HMOs) The lender’s two-year fixed rate at 75% LTV in this market sector The five-year rate at 75% LTV is now 4.89% with a 5% fee The two-year fixed rate at 85% LTV has fallen slightly to 5.77% (down from 5.79%) Barclays has slashed fixed rates by up to 0.57 percentage points for purchase and remortgage on loans of between £2 million and £5 million Other lenders making mortgage changes include: the broker-only lending arm of Yorkshire building society has cut selected fixed residential mortgage rates by up to 0.33 percentage points It follows major lenders including Nationwide building society which all slashed their mortgage rates this week as confidence grows that the interest rate cycle has peaked Among the highlights in Accord’s new range is a fee-free deal for the purchase of a new-build home under the Deposit Unlock Scheme at 95% loan to value at 5.65% (down from 5.98%) There is £250 cashback paid on completion of the deal The mutual lender is also offering a five-year fix (75% LTV) at 4.86% with a £1,495 fee and a two-year fix (90% LTV) at 5.78% with a £995 fee Specialist buy-to-let lender Paragon has cut selected rates by up to 0.4 percentage points Its two-year fixed rates for landlords now start from 4.19% with a 5% fee (for energy-efficient homes with energy performance certificate ratings A to C) Five-year fixed rates start from 4.69% with a 7% fee and are available for purchase and remortgage has reduced rates across its fixed rate mortgage range by up to 0.3 percentage points Two-year fixed rates now start from 3.99% (75% LTV) with a 7% fee Nationwide building society has slashed its fixed rates by up to 0.43 percentage points and will offer a deal for home purchase at 4.43% It is the first time fixed rates have breached the 4.5% barrier in almost six months, writes Jo Thornhill The market-leading deal for home purchase is available to borrowers with at least 40% equity or cash deposit towards their purchase and there is a £999 fee Equivalent two-year fixed rates for purchase will now start from 4.79% Selected remortgage fixed rates have been cut by Nationwide including its three-year deal at 60% loan to value which falls to 4.94% (down from 5.08%) with a £999 fee At 85% LTV the mutual is offering a five-year fix at 5.11% with a £999 fee Nationwide is also cutting product switcher rates for existing customers looking for a new deal by up to 0.15 percentage points HSBC has launched lower fixed-rate deals following cuts of up to 0.35 percentage points across its mortgage range It’s the bank’s second rate cut in eight days The UK’s sixth-biggest mortgage lender has reduced rates on selected residential and buy-to-let remortgage and purchase deals as well as cutting rates on product transfer deals (rates for existing customers looking for a new deal) by up to 0.25 percentage points HSBC is offering a five-year fixed rate for home purchase at 4.89% for borrowers with a 10% deposit (90% loan to value) with a £999 fee The fee-free equivalent deal is now priced at 4.99% It is also offering a market-leading two-year fixed rate for remortgage at 4.93% (60% LTV) with a £999 fee The fee-free equivalent is now priced at 5.16% There is also a five-year buy-to-let remortgage deal at 4.89% (75% LTV) with a £1,999 fee has cut selected rates and is offering a two-year fix at 6.59% (76% LTV) with a £1,495 fee and a five-year rate (also 75% LTV) at 6.24% with a 1% fee It has a seven-year fix available at 6.69% (75% LTV) with a 1% fee HSBC is cutting fixed rates across its mortgage range from tomorrow (22 November) including some of its most competitive deals which brokers say could dip as low as 4.5% which already offers a five-year fixed rate for residential remortgage at 4.51% for existing HSBC customers under its product transfer deals could look to match this deal for new borrowers when it unveils its rates tomorrow morning TSB has also announced rate cuts of up to 0.3 percentage points on residential mortgage fixed rates from tomorrow plus cuts of up to 0.85 percentage points on shared ownership and shared equity deals Lenders across the market are continuing to cut mortgage rates following the freeze to the Bank of England Bank Rate earlier this month at 5.25% It has given providers confidence that the current interest rate cycle has peaked and that rates could fall next year Virgin Money is cutting rates for home purchase and larger mortgage loans (over £1 million) Two and five-year fixed rates for larger loan remortgage are available at 5.4% and 4.99% respectively at 75% loan to value with a £1,995 fee Virgin is offering a five-year fix for residential home purchase at 4.53% (65% LTV) with a £1,295 fee Buy-to-let fixed rates have also been reduced The bank is offering a five-year BTL deal at 4.62% (60% LTV) with a 3% fee Santander has cut selected fixed rates for new and existing customers by up to 0.25 percentage points It is offering a two year fixed rate for home purchase at 4.99% (down from 5.14%) for borrowers with at least a 40% deposit towards their property Two-year fixed rates for remortgage now start from 5.15% the bank’s lowest five-year fixed rate is now at 4.86% (60% LTV) with a £999 fee Santander also cut rates across its three-year fixed rate deals which are growing in popularity as rates have come down Its three-year deal for remortgage starts at 4.99% (60% LTV) with a £999 fee At the same time Santander has announced that all new fixed and tracker rate mortgage deals (for new deals and product transfers) taken out from today (21 November) will revert to its Standard Variable Rate (SVR) at the end of their deal mortgage deals taken up until 20 November will still revert to the bank’s ‘Follow-on’ rate Coventry building society has also cut fixed rates Among the highlights is a five-year fixed rate for remortgage at 4.85% (65% LTV) with a £999 fee NatWest has cut its fixed rate deals for existing customers by up to 0.4 percentage points It is offering a two-year product switch deal with no fee at 5.4% (down from 5.8%) NatWest customers need at least 40% equity in their property to be eligible Gen H has cut fixed rates across its range by up to 0.5 percentage points It is offering a two-year fixed rate at 4.99% three-year rates from 4.84% and five-year rates from 4.87% (all 60% LTV) with a £999 fee To get the lowest rates borrowers must use Gen H’s legal service for conveyancing Aldermore has launched a new range of buy-to-let fixed rates and residential deals and increased its maximum age limit for lending up to 75 Among its deals it is offering a standard BTL five-year fix at 5.09% (75% LTV) HSBC is offering a five-year fixed rate for home purchase at 4.59% following rate reductions of up to 0.36 percentage points on its fixed home loans includes a five-year fixed rate for remortgage at 4.84% Both this deal and the purchase rate at 4.59% are for borrowers with at least 40% equity or deposit (60% loan to value) and each has a £999 fee.  Yesterday Halifax Intermediaries cut rates to offer a market-leading five-year fixed rate for purchase at 4.53% Virgin Money also cut rates and is offering the lowest five-year fix for remortgage at 4.7% Brokers expect the mortgage price war will intensify in the remaining weeks of the year, fuelled by the fall in inflation recorded today by the Office for National Statistics Lower inflation means the Bank of England is less likely to increase the Bank Rate (currently at 5.25%) any further Lenders could see this as an opportunity to grab greater market share with lower rates boosting business in the run up to the New Year associate director at L&C Mortgages says: “Better-than-expected inflation data should help underpin the improvements in rate outlook that have already seen fixed mortgage rates dropping.  “Two-year fixed rates have edged below 5% in the last couple of weeks with major players like Halifax and HSBC joining the leading pack Five year rates are nudging closer to 4.50% and could dip below that mark in coming weeks I’d expect to see more lenders following the more sharply-priced competition the specialist buy-to-let lender has cut fixed rates across its range Its two-year deals start from 4.66% with a 5% fee and five-year fixed rates start from 5.19% with a 6% fee Halifax Intermediaries is making cuts of up to 0.46 percentage points across its fixed mortgage rates for home purchase and is offering a market-leading five-year deal at 4.53% The deal 4.53% has a £999 fee and is available at 60% LTV The lender has also made cuts to purchase deals for first-time buyers and across its new build larger loans and shared equity and shared ownership scheme deals Other major mortgage lenders are sharpening their knives to bring steep cuts to fixed rates as competition hots up once again following this month’s Bank Rate hold by the Bank of England at 5.25% Virgin Money has cut selected fixed rates by up to 0.25 percentage points and is offering a market-leading five-year fixed rate for remortgage at 4.7% with a £995 fee (60% loan to value) at 4.58% with a £1,295 fee (60% LTV) and a five-year fixed rate for remortgage at 4.8% (70% LTV) with a £995 fee First Direct has announced its biggest price drop for fixed rates in nine months with reductions of up to 0.4 percentage points for new and existing customers It is offering a five-year fixed rate for purchase or remortgage at 4.74% (60% LTV) with a £490 fee.  First Direct deals are not available through brokers.  The online bank’s two-year fixed rates now start from 5.09% HSBC has given notice to brokers of its intention to cut fixed rates across residential and buy-to-let deals from tomorrow morning (15 November) the specialist buy-to-let lender of Nationwide building society is cutting selected fixed rates by up to 0.3 percentage points from tomorrow (15 November) Among the new deals it will offer a two-year fixed rate for BTL purchase or remortgage at 4.34% with a 3% fee This deal is available up to 65% loan to value Mortgage broker Nick Mendes at John Charcol says: “We could see five-year residential mortgage rates breach the 4.5% mark More lenders are cutting fixed rate mortgage costs following the lead of big-name lenders including Nationwide Reliance Bank has cut rates on its mortgages for key workers (see below) by up to 1.09 percentage points Among the highlights it is offering a two-year fixed rate for home purchase at 4.99% (75% loan to value) with a £1,499 fee and a fee-free two-year fix for borrowers with 10% deposit at 5.7% as well as employees of the Salvation Army Metro Bank has cut rates across its residential and BTL mortgage deals for new and existing customers by up to 0.7 percentage points It has a BTL two-year fixed rate at 4.79% with a 4% fee five-year BTL rates start from 4.99% (60% LTV) It is offering a residential remortgage five-year fixed rate at 5.89% (90% LTV) with a £999 fee Accord Mortgages is cutting selected buy-to-let fixed rate mortgages by up to 0.3 percentage points from tomorrow (10 November) It is offering a two-year fixed rate at 5.24% (60% LTV) for BTL purchase It has a five-year fix for remortgage at 4.99% with a £995 fee (60% LTV) or an equivalent deal at 75% LTV at 5.29%.  Landbay has cut its buy-to-let fixed rates by up to 0.3 percentage points It is now offering a two-year fixed rate at 4.39% albeit with a 6% fee and at 55% loan to value Other highlights include a five-year fixed rate at 5.05% (75% LTV) has cut selected rates by up to 0.6 percentage points Rates start from 4.19% for a two-year fix on its standard BTL product This deal has a 7% fee and is available at 75% loan to value HSBC has unveiled its new fixed rate mortgage deals following its latest price cut including a five-year rate for residential home purchase at 4.69% has a £999 fee and requires at least a 40% deposit towards the purchase But it comes as Nationwide building society has announced it is cutting fixed rates across its range by as much as 0.38 percentage points from tomorrow (9 November) And among its new deals it will offer a five-year fixed rate for home purchase at 4.64% which will catapult it back to market-leader in this sector The mutual’s best-buy deal has a £999 fee and is available to home buyers with at least 40% deposit to put down towards their new home Santander is already offering an equivalent product at 4.65% Brokers say the latest reductions by HSBC and Nationwide may prompt the Spanish-owned bank to review its rate and reprice downwards Among its other new rates HSBC is offering a two-year fix for residential remortgage at 5.39% for borrowers with 25% equity This is a cut of 0.25 percentage points on the old rate The bank also slashed buy-to-let mortgage rates for purchase and remortgage customers Its two-year fixed rate BTL remortgage deal at 75% loan to value is cut by 0.2 percentage points to 5.94% Nationwide’s rate cuts mean it will now offer a three-year fixed rate for residential remortgage at 5.08% (60% LTV) with a £999 fee and a five-year fix Buy-to-let lender BM Solutions, part of Lloyds Banking Group is cutting fixed rates across its range from tomorrow (9 November) Among the highlights it is offering a five-year fixed rate for BTL purchase at 4.65% with a £3,999 fee (65% LTV) and a five-year fixed rate for BTL remortgage at 4.70% with the same fee (also 65% LTV) Five-year fixed rates for remortgage with a smaller £1,499 fee have fallen to 5.01% (65% LTV) has cut its range of five-year fixed rates by up to 0.2 percentage points It is offering a five-year deal at 5.54% (75% LTV) with a 3% fee and a green mortgage product (for properties with an energy performance certificate EPC rating between A and C) at 5.44% HSBC is cutting selected residential and buy-to-let fixed rates from tomorrow (8 November) which are likely to take some deals into the best-buy spots Among the reductions will be cuts to first-time buyer deals two-year fixed rates for remortgage at 60% LTV to 75% LTV buy-to-let rates for purchase and remortgage as well as product transfer deals for existing residential and BTL customers HSBC has also launched a fee-free three-year fixed rate for first-time buyers and home movers at 95% loan to value with £350 cashback NatWest is cutting fixed rates for purchase and remortgage by up to 0.57 percentage points from tomorrow (8 November) The chunkiest cuts will be on two and five-year fixed rates for residential remortgage Its five-year fix for remortgage starts from 4.89% with a £1,495 fee (60% LTV) Equivalent two-year rates start from 5.22% The bank has also taken a knife to buy-to-let rates shared equity deals and product transfer rates for existing customers Its Help To Buy shared equity five-year fixed rate for remortgage is now 5.09% (75% LTV) with a £995 fee TSB has also announced rate cuts to selected deals available through brokers The lender’s two- and five-year fixed rates for buy-to-let purchase and remortgage are cut by up to 0.3 percentage points Five-year rates will start from 5.09% (down from 5.39%) with a £1,995 fee (60% LTV).  The bank will also launch a two-year fixed rate for purchase at 5.69% There is a £995 fee but borrowers get £500 cashback on completion Mortgage broker Nick Mendes at John Charcol says: “Following recent repricing from Virgin Money and Halifax [see below] HSBC and TSB have acted quickly with further repricing The latest cut from HSBC is likely to see it secure its position among the best buys.” Coventry building society is offering a near market-leading five-year fixed rate for remortgages with its latest rate cut of up to 0.36 percentage points across selected deals which unveiled its latest deals available through brokers this morning has a five-year fixed rate for new customers for purchase or remortgage at 4.86% with a £999 fee Borrowers need at least 35% deposit or equity to be eligible The rate comes close to the current market leading deal available from Virgin Money at 4.85% with a £995 fee although borrowers with Virgin need at least 40% equity to bag this rate Coventry is offering a fee-free two-year fixed rate for purchase and remortgage at 5.58% (also 65% loan to value) It also has a two-year fixed-rate first time buyer deal at 6.39% (95% LTV) with no arrangement fee and £500 cashback on completion Virgin Money has announced rate cuts to selected residential purchase deals as well as a range of its buy-to-let rates for purchase and remortgage.  Residential purchase rates are tweaked down by up to 0.08 percentage points at 4.91% with a £1,295 fee (65% LTV).  Virgin’s buy-to-let exclusives for remortgage and purchase are cut by 0.1 percentage points and start from 4.96% (65% LTV) with a £2,195 fee has cut selected two-year fixed rates by 0.1 percentage points Rates start from 4.84% (65% LTV) with a 5.5% fee which offers mortgage deals exclusively through brokers is cutting selected two- and five-year fixed rates for purchase and remortgage from tomorrow Among the highlights is a five-year fixed rate for remortgage at 4.97% with a £999 fee (60% LTV) although this rate is higher than the bank’s equivalent five-year fix for home purchase The lender’s two-year fixed rate remortgage deals have also had a haircut The rate at 60% LTV with a £999 fee is now 5.25% Two- and five-year fixed rates for larger loans (£1 million to £5 million) have also been cut at 60% and 75% loan to value Five-year fixed rates in this sector now start from 5.22% with a £1,499 fee.  Selected shared ownership and First Homes scheme deals as well as green mortgages (loans for the most energy efficient homes) will also be reduced from tomorrow said: “It’s positive to see Halifax introduce another round of repricing The lender had been a little off the pace on its remortgage pricing “But still its remortgage rates have not dropped as low as its rates for home purchase More lenders are cutting the cost of borrowing in the wake of yesterday’s decision by the Bank of England to freeze the Bank Rate at 5.25% for the second time in a row.  Coventry building society was quick out of the traps announcing reductions across its fixed-rate mortgage deals for new and existing customers from Tuesday next week (7 November) says the Bank Rate freeze is good news for mortgage holders introducing more stability into the market He expects it will lead to more reductions to fixed mortgage rates although he predicts cuts will be gradual rather than abrupt: “With 2024 approaching lenders will want to start the year strong and will want to enter the new year with a good pipeline of business.  “Those likely to benefit the most will be borrowing at lower loan to values [with larger deposits relative to the purchase price] as lenders will still be keeping a keen eye on risk.” while two and five-year offset mortgage rates have been lowered Its product transfer deals for existing residential customers will also be shaved to offer lower rates on two and five-year fixes and offset loans At the same time the mutual lender has said it will cut all fixed rates for new and existing buy-to-let borrowers Leeds building society has cut selected two-year fixed rates for residential borrowers by up to 0.5 percentage points It is offering a two-year fixed rate at 5.23% with a £999 fee at 75% loan to value Selected product transfer fixed rates are also reduced by up to 0.45 percentage points MPowered has cut selected two and three-year fixed rates by up to 0.2 percentage points Among the new rates is it offering a two-year fix for remortgage at 5.61% with a £999 fee has cut fixed rates across its range for borrowers with prime and near-prime credit ratings by up to 0.2 percentage points It is offering a five-year fix at 5.14% (60% LTV) and a two-year fix at 5.59% has cut all five-year fixed rates by 0.2 percentage points and reduced two-year product transfer deals and Switch & Fix rates by 0.15 percentage points Five-year standard BLT fixed rates now start from 5.24% (65% LTV) with a 7% fee has cut selected residential product transfer fixed rates by up to 0.2 percentage points available through brokers to existing Platform borrowers start from 4.87% for a five-year fix with a £1,249 fee at 60% LTV Equivalent three-year fixed rates start from 5.19% HSBC is cutting selected residential and buy-to-let fixed rates across its range for new and existing customers The move comes ahead of the Bank of England’s latest Bank Rate announcement which influences what lenders charge their customers HSBC’s five-year fixed rate for home purchase (60% LTV) is down by 0.19 percentage points to 4.84% with a £999 fee Rival Santander is offering the market-leading rate in this category at 4.64% with a £999 fee The three and 10-year fixed rates for remortgage at HSBC have been cut by up to 0.45 percentage points The three-year deal is now at 5.69% (60% LTV) with a £999 fee HSBC is offering a five-year fixed rate for remortgage (60% LTV) at 5.02% with a £1,999 fee Barclays is reducing the rates on its fixed rate deals for home purchase by up to 0.26 percentage points It is offering two-year fixed rates for purchase from 5.1% (60% LTV) with an £899 fee and an equivalent deal for Premier banking customers at 5.07% Among its other new rates is a five-year fix at 5.17% (85% LTV) NatWest has reduced a broad range of its fixed rate deals for new and existing customers Its residential fixed rates are cut by up to 0.27 percentage points while buy-to-let rates are slashed by up to 0.4 percentage points deals for existing customers looking for a new rate are also cut by up to 0.2 percentage points on residential deals and 0.33 percentage points for BTL Among its new rates NatWest will offer a five-year fixed rate for home purchase at 4.66% for borrowers with at least a 40% cash deposit But the bank’s fixed rate remortgage deals are less competitive starting from 5.53% for two-year fixes and 5.1% over five years Halifax Intermediaries has reduced selected fixed rates on its bespoke product transfer deals for existing customers At the same time the lender has cut rates for new build home purchase at 95% loan to value will start from 6.57% for a two-year fixed rate the specialist buy-to-let lender, has cut selected fixed rates by up to 0.2 percentage points the lender is offering a two-year fix for standard BTL landlords at 4.89% (75% LTV) with a 6% fee For landlords of houses of multiple occupancy Landbay has a five-year fixed rates at 5.05% also with a 6% fee the lending brand owned by Lloyds Banking Group is pulling out of the residential mortgage market on 17 November.  It will no longer offer purchase or remortgage deals for new customers Any applications submitted by brokers up to Thursday 16 November will be accepted as normal Existing customers will continue with their mortgage deals through Scottish Widows and will be offered the full range of the brand’s mortgage services including porting (where you can move house and take your existing mortgage with you) and product transfer deals through brokers Scottish Widows had been one of the few lenders to offer offset mortgage deals to customers Offset loans allow you to ‘offset’ cash savings against your mortgage debt so you only pay interest on the balance Remaining offset loan providers include Accord says: “It’s a shame to see this withdrawal from the mainstream market Scottish Widows Bank has always been able to serve some important niche areas and has built a strong reputation as having the ability to understand and be flexible for young professionals “Notably it (Scottish Widows) is the only Lloyds Banking Group brand that offered offset mortgages and that looks set to leave a gap in its proposition unless another brand can pick up the offset baton “This marks a reduced choice for borrowers from what has been an innovative lender that could bring a more individual approach.” SWB says it will now focus on its lifetime mortgage product The bank says its lifetime mortgage deals are unchanged and new business applications can be submitted as normal.  Lifetime mortgages are loans secured against your home that are taken out in later life as a way of releasing equity (cash) out of a property Skipton building society has renamed its joint borrower sole proprietor (JBSP) mortgage offers as ‘income booster’ deals in a bid to simplify mortgage jargon for first-time buyers Skipton research found first-time buyers feel they have limited opportunities to get on the property ladder as they don’t understand how some mortgage deals work The income booster scheme enables home buyers to add up to three people to their mortgage without them becoming owners of the property The income of these joint borrowers can be taken into account when calculating the size of the loan which can enable a first-time buyer to borrow more The latest data from the Bank of England shows the mortgage and housing market to have dramatically slowed.  Mortgage approvals in September for house purchase slumped to their lowest level (43,300) since January 2023 and net approvals for remortgaging (which only includes remortgaging to a different lender) fell in the same month to their lowest level for more than 20 years.  This suggests that the obligation on lenders to assess whether new customers can realistically afford a loan is encouraging more borrowers to stick with their existing lender when they come to the end of an existing deal Existing lender product transfer and switcher deals also tend to have lower or no arrangement fees is cutting selected fixed buy-to-let mortgage rates by up to 0.5 percentage points the lender is offering a two-year fixed rate deal for purchase or remortgage at 4.49% with a 3% fee (65% loan to value) start from 4.99% with a £1,495 fee (55% LTV) and three year rates (product transfer only for existing customers) start from 4.84% with a 3% fee (65% LTV) is cutting selected BTL fixed rate deals by up to 0.4 percentage points It is offering a two-year fixed rates for remortgage at 5.54% with a £1,995 fee (60% LTV) a three-year rate at 5.49% with a £995 fee (60% LTV) and a five-year fix at 5.34% with a £995 fee (65% LTV) The lender will also cut fixed BTL rates on product transfer deals for existing customers from Wednesday (1 November) by up to 0.25 percentage points Leeds building society has also announced rate cuts to selected BTL products for new and existing customers Loans for BTL remortgage for new and existing borrowers with at least 40% equity have been cut by up to 0.15 percentage points The cuts apply to standard BTL and deals for portfolio landlords with multiple properties The five-year fix for purchase or remortgage at 60% LTV is now priced at either 5.14% with a £1,999 fee 5.29% with a £999 fee or 5.44% with no fee.   While buy-to-let lenders continue to slash rates on their mortgage deals recent research shows more than one in 10 landlords are planning to get out of the investment property market due to higher mortgage costs and increased rules and regulations A survey of landlords by property tax consultancy Cornerstone Tax found 15% of landlords are considering selling-up due to rising costs It follows a report by estate agent Hamptons that shows landlords are paying £15 billion more in interest annually as a result of higher mortgage costs.  This is a 40% increase (£4.3 billion more per year) on 2022 has announced rate increases across a number of its residential fixed rate deals.  It is the first lender to increase fixed rates in many weeks as mortgage providers have generally drawn confidence from falling wholesale money market ‘swap’ rates and the prevailing view that the Bank of England Bank’s Rate is at or close to its peak.  Swap rates are the interbank interest rates at which banks lend to each other they are widely used by lenders as a guide for pricing fixed rate mortgage deals The next Bank Rate announcement is on 2 November Accord is changing the rates across its Deposit Unlock mortgage deals (these are mortgages at 95% loan to value for new-build properties) Accord offers a range of options under the scheme The five-year fixed rates have been increased by 0.12 percentage points to 5.76% with a £495 fee or 5.85% with no fee two-year fixed rates have been cut by up to 0.08 percentage points The lender will offer a deal at 6.5% with a £995 fee Accord is also increasing its 10-year fixed rate for residential remortgage customers at 75% loan to value by 0.07 percentage points Virgin Money is increasing the rate on its remortgage and purchase Freedom to Fix tracker rate deals by 0.05 percentage points with new two-year deals starting from 5.60% (0.35 percentage points above the Bank of England base rate of 5.25%) at 65% LTV it is cutting selected residential product transfer deals for existing customers by up to 0.15 percentage points Five-year fixed rate product transfer deals start from 4.89% It has also cut selected buy-to-let purchase and remortgage deals for new customers Five-year portfolio BTL fixed rates with a 3% fee start from 4.97% Virgin will also launch a range of broker exclusive purchase and remortgage deals tomorrow including a two-year fix with a 1% fee at 5.09% (60% LTV) TSB also pulled a number of its two-year fixed rates for purchase and remortgage from the market yesterday and has now increased rates by up to 0.2 percentage points The bank’s two-year fixed rate for home purchase at 60% loan to value has gone up from 5.09% to 5.29% with a £995 fee It had previously been a market leading deal TSB’s two-year fix for remortgage customers has gone up from 5.24% to 5.44% (up to 75% LTV) Nick Mendes of broker John Charcol says: “It is Interesting to see 10-year pricing increase from Accord in this latest product refresh.  which is encouraging given the Bank of England’s Monetary Policy Committee is meeting next week Markets have so far remained optimistic of another hold in the base rate.” buoyed by falling swap rates and greater market stability Coventry building society is cutting selected fixed remortgage and purchase rates for new borrowers including first-time buyer and offset mortgage deals Fixed rates on its product transfer deals for existing customers will also be reduced At the same time the mutual is cutting buy-to-let fixed rates both for new and existing borrowers New rates and deals will be unveiled on Friday Santander is cutting residential fixed rates for new and existing customers by up to 0.56 percentage points has also reduced fixed rate buy-to-let deals by up to 0.32 percentage points and shaved the rates on all residential tracker deals by 0.1 percentage point Tracker mortgages follow the Bank of England Bank Rate 1 percentage point – so if the Bank Rate is at 5.25% Santander is now offering five-year fixed rates for residential remortgage from 4.94% with a £999 fee (60% LTV) and equivalent two-year fixed rates from 5.33% Its two-year tracker rate deals now start at 5.59% (tracking at 0.34 percentage points above the Bank of England base rate) with a £999 fee (60% LTV) two-year fixed rates now start from 5.57% with a £1,749 fee and five-year rates start from 5.04% (both deals at 60% LTV) At the same time Santander has launched a range of three-year fixed rate deals with no fee available to new customers and on product transfer deals Skipton building society has made further cuts to its mortgage rates with reductions across its product range taking effect from 9am today buy-to-let and first-time buyer government scheme products are affected and there has been a further rate reduction on its Track Record mortgage which is designed to help renters to access the property market The adjustments include rates coming down by up to 0.22% on 70 residential products by up to 0.33% on 16 buy-to-let products and by up to 0.30% on 25 government scheme products which include shared ownership and Lifetime ISA deals Principality building society has cut fixed rates for residential and buy-to-let borrowers by up to 0.25 percentage points Selected residential rates at 75% loan to value up to 90% loan to value have been cut as well as Help To Buy deals and buy-to-let loans at 60% loan to value It is offering a two-year fixed rate at 5.35% (75% LTV) with an £895 fee and a fee-free five-year fixed rate deal at 5.27% Bank of Ireland is cutting its Bespoke buy-to-let mortgage rates Its two-year fixed rates will start from 5.49% with a £1,995 fee (60% LTV) and equivalent five-year fixed rates will drop to 5.05% LendInvest has cut fixed rates by up to 0.45 percentage points and reintroduced a five-year fixed rate at 90% loan to value at 6.29% TSB is cutting selected two and three-year fixed rates for new borrowers by up to 0.5 percentage points as it wades into the ongoing mortgage price war will offer the new rates through brokers from tomorrow (20 October) Two-year and three-year fixed rates for remortgage will start from 5.19% (60% LTV) with a £995 fee while two-year fixed rates for purchase will start from 5.09% with a £995 fee (60% LTV) TSB is also cutting fixed rates on its product transfer deals for existing customers looking for a new rate and deals for additional borrowing by up to 0.5 percentage points A number of other lenders have made changes to their mortgage ranges: Halifax has launched a range of three-year fixed rate deals for residential remortgage The deals start from 5.08% with a £999 fee (60% LTV) the BTL lending arm of Lloyds Banking Group is cutting its fixed rate buy-to-let mortgage deals from tomorrow It is offering a fee-free five-year fixed rate for BTL purchase at 5.41% (65% LTV) or a lower rate of 4.89% but with a £3,999 fee Its two-year remortgage rate for BTL will start from 6.14% (65% LTV) with no arrangement fee (the rate is 5.84% with a £1,499 fee) Its lowest five-year fixed rate for remortage is at 4.89% with a £3,999 fee (65% LTV) has reduced selected fixed rates by up to 0.25 percentage points It is offering two-year fixed rates from 5.69% three-year rates from 5.54% and five-year deals from 5.24% Leeds building society has cut selected BTL rates (for limited company BTL) by up to 0.45 percentage points Among the new rates it is offering a two-year fixed rate at 5.19% for BTL purchase or remortgage (75% LTV) and a five-year fix at 5.64% (also 75% LTV) For a smaller fee of £1,999 the equivalent rate is 6.59% for two years or 6.09% over five years (also 75% LTV) Higher rates are also available with no set-up fee MPowered Mortgages has cut rates on its three-year fixed loans between 75% loan to value and 90% It is offering a three-year fix for remortgage with a £999 fee at 5.35% (75% LTV) Vida Homeloans has slashed selected BTL deals by up to 0.7 percentage points and residential rates by up to 0.55 percentage points It is offering a five-year fixed rate at 5.14% for BTL (75% LTV) with a 6% fee which cater for borrowers with non standard credit histories start from 6.79% for a five-year fixed rate and 7.14% over two-years (65% LTV).  Kent Reliance building society has cut selected fixed rates on its BTL mortgage range Fixed rate mortgage deals with a 7% fee will see cuts from tomorrow (20 October).  Precise Mortgages is reducing rates across selected residential and BTL products The new rates and deals will be unveiled tomorrow Virgin Money has cut fixed mortgage rates for new customers by up to 0.19 percentage points and is offering a market-leading five-year fixed rate for home purchase at 4.71% This deal is available for borrowers with at least 35% deposit or equity and will be on offer through brokers from tomorrow (18 October) which on Friday last week launched a five-year fixed rate for property purchase at 4.73% which had been the market leader to this point At the same time Virgin will offer a five-year fixed rate for remortgage at 4.85% (60% LTV) with a £995 fee The bank will offer fee-free purchase deals starting from 4.87% (65% LTV) for a five-year fixed rate Selected two-year purchase and remortgage rates have also been cut Virgin will offer a two-year fix for remortgage at 5.26% (60% LTV) with a £995 fee Virgin has also cut selected buy-to-let fixed rates and is offering a fix-year deal at 5.31% (75% LTV).  for existing customers looking to switch to a new rate have been cut by up to 0.26 percentage points with new five-year fixed rate deals starting from 4.89% Co-operative Bank has cut selected fixed rates by up to 0.47 percentage points It is offering a five-year fixed rate deal for purchase and remortgage at 4.92% with a £999 fee and an equivalent deal for larger mortgages (£650,000 minimum loan) at 4.86% with a £1,999 fee Both deals require a minimum 40% equity or deposit The bank is also offering two year fixed rates for purchase or remortgage from 5.1% three-year rates from 5.09% and five-year rates from 4.92% (all deals are at 60% loan to value with a £999 fee) Barclays is cutting selected fixed mortgage rates by up to 0.2 percentage points for new customers across its residential and BTL ranges Selected product transfer deals are also cut Among the deals for new customers is a five-year fixed rate at 5.43% (85% LTV) and a fee-free Great Escape five-year fixed rate at 5.65% (also 85% LTV).  The bank’s five-year fix for Premier Banking customers is now at 5.24% (60% LTV) with a £999 fee Its five-year fee-free Springboard mortgage deal for first-time buyers at 95% LTV is cut from 6.84% to 6.64% Halifax is slashing its fixed mortgage rates again for new borrowers and will offer a market leading five-year fixed rate for home purchase at 4.73% available from Monday (16 October) through brokers shared ownership and green home products.  The bank last cut its fixed borrowing rates just over one week ago Halifax’s five-year fixed rate for home purchase at 4.73% has a £999 fee and is available to borrowers with a 40% deposit (60% loan to value).  Earlier this week Nationwide building society cut its fixed mortgage rates and is offering a five-year fix for home purchase at 4.74% Nick Mendes at broker John Charcol said: “It’s great to see strong competition among lenders with rates getting nudged down like this It’s possible five-year rates could get even closer to 4.5% by the end of this month Halifax will also offer two-year fixed rates for home purchase from 5.24% with a £999 fee (also 60% LTV) Its five-year fixed rates for new build properties are cut and start from 4.93% with a £999 fee (60% LTV) Its shared equity five-year fixed rates start from 4.93% with a £999 fee (60% LTV) The equivalent deal at 95% LTV is 5.91% with a £999 fee Nationwide and First Direct have cut fixed borrowing costs as competition rages in the sub-5% mortgage deal sector has cut residential fixed rates for new and existing customers by up to 0.45 percentage points It is the mutual’s second rate cut in as many weeks Nationwide is offering a five-year fix for home purchase at 4.74% with a £999 fee This deal is available for those with at least a 40% deposit to put towards the purchase (max 60% loan to value) Nationwide also has a five-year fixed rate for remortgage (also 60% LTV) at 4.89% with a £999 fee three and five-year fixed rates for new and existing customers by up to 0.33 percentage points It is offering a five-year fixed rate for home purchase and remortgage at 4.87% with a £490 fee (60% LTV) But First Direct’s mortgage range is only available direct from the bank Coventry building society is cutting selected fixed rates across its range for residential and buy-to-let borrowers from Friday (13 October) The reductions will be applied to all two-year fixed rates for residential home purchase and remortgage three-year fixed rates at 80% to 85% loan to value The mutual is withdrawing all tracker rate deals for new and existing customers Virgin Money has cut a range of its BTL deals by up to 0.26 percentage points is a five-year fixed rate for BTL remortgage or purchase at 4.72% with a 3% fee (60% LTV) The lender has withdrawn a range of broker exclusive purchase and remortgage deals and relaunched with new rates Its five-year fixed rate for remortgage has gone up from 4.90% to 4.95% for example but the new deal offers free valuation and £250 cashback.  TSB has cut fixed rates for new residential and BTL customers by up to 0.2 percentage points Among its cuts will be a reduction on two-year fixed rates for residential home purchase up to 95% loan to value and cuts on all three-year fixed rates for purchase and remortgage Two and five-year fixed rates for BTL remortgage will be cut by up to 0.15 percentage points The new mortgage rates will be unveiled tomorrow Co-operative Bank for Intermediaries has cut fixed rates for residential and buy-to-let borrowers which last month changed its name from Platform three and five-year fixed rates for home purchase and residential remortgage by up to 0.5 percentage points BTL deals are cut by up to 0.4 percentage points West Bromwich building society has cut three-year fixed rate deals by up to 0.3 percentage points The mutual lender is offering a three-year fix for remortgage at 5.44% for new customers with 25% equity in their property Market Harborough building society has cut selected fixed rates by up to 0.35 percentage points The rate reductions apply across their specialist lending areas More lenders have cropped their borrowing rates as competition for new business intensifies let-to-buy and large portfolio BTL fixed rates by up to 0.75 percentage points include a five-year fixed rate at 4.84% (55% loan to value) with a 3% fee Figures published by Moneyfacts show that the number of BTL products has grown almost threefold in a year This month’s figure is also up from the 2,475 BTL deals available in September Aldermore has cut its fixed rate mortgage deals for existing customers looking to switch The new product switcher rates apply on residential deals as well as buy-to-let (BTL).  The lender’s two-year fixed rate for residential mortgage customers looking to switch to a new deal now starts from 6.24% (65% LTV) Standard (single residential) BTL two-year fixed rates start from 6.99% (70% LTV) There are no fees for existing customers on these deals Bath building society has cut fixed rates across its range for residential and BTL mortgage borrowers and also cut the cost of a range of discounted rate deals The mutual is offering a two-year fixed rate at 6.04% (80% LTV) and an equivalent five-year rate at 5.64% Mpowered Mortgages has cut rates on its three-year fixed rate mortgage deals up to 90% LTV Among the new deals it is offering a fee-free three-year fix for home purchase at 5.79% and a three-year fix for remortgage at 5.4% with a £999 fee Skipton building society has launched a range of low two-year fixed rate mortgage deals starting at 3.35% for existing customers who are at risk of hitting payment difficulties due to higher borrowing rates It says this move is an extension of its commitment to the Mortgage Charter which was established by the Financial Conduct Authority The Charter lays out standards which all lenders must stick to when dealing with borrowers in financial difficulties.  Existing Skipton mortgage customers who know they’re going to struggle with payments at higher mortgage rates But the downside is a charge of 5% of the existing loan amount while borrowers will have lower monthly payments in the short term they will be paying off more debt over the duration of their mortgage so they’re likely to pay more interest overall Skipton is offering a two-year fixed rate at 3.35% this is for borrowers with at least 40% equity in their property (60% loan to value ratio) The rate then rises to 3.39% for borrowers with 25% equity Borrowers with 15% equity can get a rate at 3.49% and those with just 10% equity can get a rate at 3.59%.  The rates are significantly lower than the average two-year fixed residential mortgage rates on offer on the open market while the average five-year fixed rate is 5.96% The Mortgage Charter states that lenders must enable a borrower to opt to pay interest-only payments or extend their mortgage term for up to six months mortgage technical manager at broker John Charcol says: “While Skipton’s headline line rate of 3.35% in the current market might seem great the 5% arrangement fee will likely outweigh any benefits when choosing this deal over a competitor “This will suit some of Skipton’s existing mortgage holders in particular those who have a small amount of debt outstanding.” including a five-year fixed rate for home purchase at 4.84% and a five-year fix for remortgage at 4.98% The bank’s latest five-year fixed rate deal for home purchase comes close to pipping Virgin Money’s market-leading deal for home buyers which is only available through brokers at 4.82%.  Virgin Money’s 4.82% deal is available for borrowers with up to a 25% deposit (75% LTV) and may be withdrawn earlier according to demand Among HSBC’s other new deals revealed today is a five-year fixed rate for first-time buyers with a 10% cash deposit at 5.29% with a £999 fee and a five-year fixed rate for remortgage customers with up to 25% equity in their home at 5.05% with a £999 fee Nick Mendes at broker John Charcol says the mortgage price war is great news for borrowers looking for a new deal as rates continue to inch downwards: “While some of the biggest lenders fight it out to be top of the rate table a number of big banks have yet to break into the sub-5% club so we’ll wait to see if they decide to get involved in the latest rate war.  “I have some hope now that we could see five-year rates dip even as low as 4.7% later this month.” Virgin Money is cutting residential fixed rates for new and existing customers by up to 0.29 percentage points and is launching a market-leading five-year remortgage fixed rate at 4.9% The move comes hot on the heels of the launch of a five-year fixed rate deal for remortgage by HSBC subsidiary First Direct at 4.92% HSBC itself will be announcing cuts across its mortgage range tomorrow has a £995 fee and is available at 60% loan to value But it will only be available for seven days which has a £490 fee and is also for loans at 60% LTV is not available through brokers as First Direct is a direct-only lender Nick Mendes at broker John Charcol says: “It has been a while since we’ve seen a temporary rates fire sale but these latest deals from Virgin Money at 4.90% on a five-year fix will put it in pole position for remortgage rates – albeit for a limited seven days This doesn’t include rates for existing clients through a product transfer or a further advance “Mortgage holders have seven days to secure a deal at this rate before it is pulled from the market and I suspect if Virgin receives more applicants than it anticipated then the time frame could be even shorter.” Virgin has also cut rates for home purchase with fee-free five-year fixed rate deals starting from 5.04% (65% LTV) Selected product transfer deals (rates for existing customers looking for a new deal) have also been cut three and five-year fixed rates for new and existing customers (product transfer or switcher deals) by up to 0.2 percentage points Its three-year fixed rates start from 5.46% while two-year fixed rates now start from 5.51% and 10-year fixed rates start from 5.12% Halifax has cut selected fixed rate deals available through brokers from Friday (6 October) is a five-year fixed rate for home buyers at 4.85% (up to 75% loan to value) with a £999 fee Two-year deals for purchase start from 5.32% Skipton building society has cut residential fixed rates across its range by up to 0.49 percentage points Its 100% loan to value Track Record mortgage deal for first-time buyers has been cut from 6.19% to 5.94% Track Record is a five-year fixed rate with no arrangement fee.  The mutual has also cut its popular two- and five-year fixed rate deals for remortgage with rates now on offer from 5.66% and 4.99% respectively with a £1,495 fee on the two-year deal and a £2,995 fee for the five-year sub-5% rate Nationwide building society has increased its maximum loan to value ratio for self-employed borrowers looking to purchase a home (home mover or first-time buyer) to 95% The maximum LTV for remortgage for self-employed homeowners is 90% with Nationwide Nationwide has increased the amount that self-employed applicants can borrow The maximum loan to Income ratio is rising to 5.5 times income Coventry building society is cutting selected residential fixed rate deals for new and existing borrowers from Thursday (5 October) are expected to be in line with competitors including Nationwide who have all cut five-year fixed rate deals to under 5% LendInvest Mortgages has cut residential fixed rates by up to 0.45 percentage points and reintroduced deals at 90% loan to value which caters for borrowers who don’t meet mainstream lender criteria is offering two-year fixed rates starting from 6.44% with a £995 fee and five-year rates starting from 6.34% with a £1,195 fee (both deals are 70% LTV) Its rates at 90% LTV start from 7.44% with a £1,195 fee has cut fixed rates across its buy-to-let range by up to 0.46 percentage points available from tomorrow (4 October) is a two-year deal for property purchase at 5.64% for BTL purchase (60% LTV) with a £1,995 fee Equivalent five-year rates now start from 5.24% Specialist buy-to-let lender Fleet Mortgages has cut two and five-year fixed rate deals for new borrowers Among its deals the lender is offering standard BTL five-year fixed rates from 5.34% (70% LTV) with a 5% fee Nationwide building society has cut its two- and five-year fixed rates for remortgage and will offer a market-leading five-year deal for new customers last cut fixed rates on 22 September and at that time it launched a sub-5% five-year fixed rate for home purchase The new remortgage deal will be available at 4.99% with a £999 fee for borrowers with 40% equity in their property (60% loan to value) It is among the cheapest fixed rates for remortgage but they are primarily for home purchase or have higher fees attached Nationwide has also cut two-year fixed rates for remortgage with deals starting from 5.49% (also at 60% LTV) At the same time the mutual has made cuts to a range of its fee-free tracker deals for first-time buyers It is offering a two-year tracker deal for remortgage (60% LTV) at 0.74 percentage points above the Bank of England Bank Rate says: “Nationwide has laid down the gauntlet with its latest market-leading remortgage deal further strengthening its hold in the market It will be interesting to see if there is a quick response from other lenders.” TSB has cut residential fixed rates for new and existing customers by up to 0.3 percentage points and is offering a five-year fixed rate deal for purchase at 4.89% More details on this sub-5% rate will be available tomorrow The bank’s new rates include reductions to product transfer deals (rates for existing customers looking for a new deal) and rates for additional borrowing Leeds building society has cut fixed rates on its product transfer range by up to 0.16 percentage points It is also extending the end dates out to January on a range of its products right to buy and shared ownership deals for new and existing customers Specialist buy-to-let lender Landbay has cut fixed rates and will offer sub-5% fixed rates among its product range It has a two-year fixed rate (65% LTV) for standard BTL remortgage at 4.84% Yorkshire building society has nudged down the cost of its sub-5% five-year fixed rate deal for purchase and remortgage from 4.99% to 4.92% as part of a wider set of cuts across its range The mutual was one of the first to break the 5% rate barrier when it launched a five-year fixed rate on 18 September have all cut five-year fixed rates to below 5% Yorkshire’s new 4.92% five-year fix is available up to 75% loan to value (LTV) and has a £1,495 fee Yorkshire is offering a two-year fixed rate for home purchase at 5.64% with a £495 fee (also 75% LTV) It offers a free standard valuation and £250 cashback A number of other lenders have repriced their mortgage rates downwards: Co-operative Bank has announced it is cutting five-year fixed rates by up to 0.23 percentage points and relaunching its range of deals for new residential and buy-to-let customers Among its new deals Co-op will offer a five-year fixed rate for residential remortgage (at 60% loan to value) at 5.11% with a £1,999 fee is cutting five-year fixed rates on product transfer deals and for borrowers wanting a further advance (to borrow more on their mortgage) Five-year fixed rate deals for existing customers looking for a product switch start from 5.69% with a £749 fee Newcastle building society has cut rates on selected deals for buy-to-let customers by up to 0.46 percentage points Among the new rates is a two-year fix at 6.15% (80% LTV) with a £999 fee and a five-year fix at 5.99% (also 80% LTV) with no fee The Mortgage Works has cut rates on its product transfer range for existing limited company customers by up to 0.35 percentage points Among the new rates is a five-year fixed rate at 5.39% with a 5% fee (70% LTV) Newbury building society has unveiled a range of five-year fixed rate deals for buy-to-let borrowers with rates starting from 5.79% (75% LTV) for landlords of individual residential properties Limited company BTL borrower rates start from 6.29% and holiday let deals start from 6.69% Specialist buy-to-let lender Fleet Mortgages has cut rates on its five-year fixed rate deals by up to 0.2 percentage points It is offering a five-year deal at 5.34% (70% LTV) with a 5% fee has cut selected deals across its two- and  five-year fixed rates for landlords Five-year fixed rates start from 7.99% with a 2.5% fee This deal is for remortgage and available up to 70% LTV The Bank of England has published the latest figures from its monthly Money and Credit Report which are a gauge of the health of the housing and mortgage market The data shows net borrowing of mortgage debt increased in August by £1.2 billion But mortgage approvals for house purchase fell from 49,500 in July to 45,400 in August Net approvals for remortgage also fell from 39,300 in July to 25,000 in August This data only captures remortgages to new lenders so the fall in numbers could be a reflection of a growing trend of borrowers switching to a new deal with their existing lender.  and could be more popular during the cost of living crisis as there are usually low or no fees to switch and the lender does not carry out a new affordability assessment The ‘effective’ interest rate (the actual interest rate paid by borrowers) on new mortgages was 4.82% in August This is a 0.16 percentage point increase on the previous month Two more major lenders – Halifax and Barclays – are cutting the cost of borrowing following a flurry of rate drops across the market since the Bank of England froze its Bank Rate a week ago has cut selected fixed rates for purchase and remortgage by up to 0.36 percentage points It has also joined the ranks of lenders offering deals at under 5% available from Monday (2 October) through brokers include a five-year fixed rate for home purchase at 4.93% (60% LTV) with a £999 fee Its two and five-year fixed rates for remortgage customers will start from 5.63% and 5.16% respectively Both have a £999 fee and are available to borrowers with 40% equity in their home Barclays has also announced rate cuts to selected fixed and tracker rate deals for residential and buy-to-let borrowers from tomorrow (29 September) But it has not dipped below the 5% rate barrier offering five-year fixed rate deals at under 5% It is offering a two-year fixed rate for remortgage at 5.28% with a £999 fee (60% LTV) and a five-year fixed rate for purchase and remortgage at 5.14% with a £1,999 fee (also 60% LTV) A number of smaller lenders have also made cuts to their mortgage fixed rates: NatWest is the latest lender to offer a sub-5% mortgage as part of a number of cuts to its fixed-rate range Following rate reductions by Virgin and HSBC who are both offering fixed rates to new borrowers at below 5% (see story below) NatWest has unveiled a five-year fixed-rate for home purchase at 4.89% with a £1,495 fee It’s available for borrowers with at least a 40% deposit towards their purchase has also slashed rates on two and five-year fixed-rate remortgage deals by 0.17 percentage points and 0.24 percentage points respectively Its five-year fixed remortgage rate at 60% LTV will now start from 5.15% with a £1,495 fee shared equity loans and Help to Buy shared equity remortgage deals have also been shaved along with green mortgage rates (for energy efficient homes) and product switcher deals Nick Mendes at broker John Charcol said the escalating price war is great news for borrowers searching for a mortgage deal: “NatWest is following hot on the heels of its competitors It becomes just the latest in a growing line of lenders keen to break the 5% rate barrier.” Among other lenders repricing and adjusting their mortgage range offerings today: Virgin Money and HSBC have cut selected fixed rates Growing numbers of banks and building societies are taking a knife to their fixed rates as more lenders draw confidence from last week’s positive news on inflation and the Bank of England Bank Rate freeze.  Virgin Money has cut selected residential purchase and remortgage rates As mentioned above it is offering a five-year fixed rate for purchase at 4.82% (60% LTV) with a £1,295 fee Fee-free purchase fixed rates start from 5.09% The bank is also offering a five-year fixed remortgage deal at 5.38% (70% LTV) with a £999 fee At the same time Virgin is cutting BTL rates across its range It is offering a five-year fixed rate at 60% LTV for BTL purchase or remortgage at 5.27% and a 3% fee HSBC has cut selected fixed rates for new and existing customers across its residential and buy-to-let ranges New rates include a five-year fixed rate for home movers at 4.93% with a £999 fee This is for borrowers with 40% equity or deposit The bank’s five-year fixed rates for remortgage now start from 5.19% with a £999 fee (also 60% LTV) has reduced rates on its five-year fixed rate deals for standard buy-to-let borrowers and landlords with houses of multiple occupancy (HMO) Deals now start from 5.91% (75% LTV) with a 3% fee TML has also launched a new two-year standard BTL fixed rate at 4.69% with a 5% fee The two-year fix for HMO deals starts from 6.19% Specialist BTL lender Landbay has cut rates on two and five-year fixed rates by up to 0.2 percentage points It is offering fixed rates for HMO properties and multi-unit freehold blocks from 5.04% has launched a new range of BTL deals for landlords with multiple properties The new five-year fixed rates start from 5.09% (75% LTV) with a 7% fee says: “The downward movement in rates is definitely something we will see more of while lenders are vying for new business in a very quiet market I would like to think fixed mortgage rates have peaked have cut fixed mortgage rates for new and existing customers following a freeze to the Bank of England base rate last week is cutting fixed rates for new and existing residential and buy-to-let (BTL) customers from tomorrow (26 September) It includes a sub-5% five-year fixed rate for house purchase.  This comes after Nationwide building society caused a stir on Friday last week after it launched a five-year fix for purchases at 4.94% And Yorkshire building society has also launched a sub-5% deal (4.99%) for purchase and remortgage (see stories below) Santander’s five-year fix is at 4.95% with a £999 fee and is available to borrowers with a 40% cash deposit to put down towards their home purchase The bank is also offering two-year fixed rates from 5.43% with a £999 fee (60% LTV).  The bank has also cut rates for BTL and on product transfer deals (for existing customers looking to switch to a new deal) Bank of Ireland is cutting residential fixed rates for new customers for purchase and remortgage from tomorrow It is offering two-year fixed rates from 5.39% (with a £1,495 fee) at 75% loan to value and five-year fixed rates from 4.99% also with a £1,495 fee (75% LTV) Nottingham building society has cut two-year fixed rates for new residential borrowers by up to 0.23 percentage points It has also introduced fee-free fixed rates at 75% and 85% loan to value the specialist broker-only lender owned by Yorkshire building society is cutting selected buy-to-let product transfer rates from tomorrow It cut selected residential fixed rates on Friday last week Its two- and three-year BTL rates will be cut by up to 0.3 percentage points while five-year rates are set to be cut by up to 0.35 percentage points These are deals available to existing customers only Generation Home has announced it is cutting fixed residential rates for new business from tomorrow – it is the lender’s third rate cut in as many weeks Rates up to 90% loan to value are set to be cut by up to 0.2 percentage points.  Five-year fixed rates (for borrowers who take the homebuying bundle including Gen H Legal’s conveyancing service) are at 5.38% with a £999 fee (up to 80% LTV) Two-year fixed rates (homebuyer bundle) now start from 5.9% Specialist BTL lender Keystone Property Finance has cut fixed rates for the second time this month The lender’s new rates under its Standard range will be live on its website tomorrow morning Nationwide building society and TSB have both cut selected residential fixed rates with Nationwide offering a five-year fixed-rate deal for purchase at sub-5% The Bank of England’s freeze on interest rates yesterday appears to have given lenders the confidence to make further cuts to mortgage costs and brokers are predicting more are likely to follow Nationwide and TSB’s lead today in the downward repricing of fixed rates which has made cuts of up to 0.31 percentage points is offering a five-year fixed rate for new customers purchasing a property at 4.94% with a £999 fee (75% LTV) Its first-time buyer deal at 90% LTV has been cut to 5.38% Residential remortgage deals now start from 5.7% for a two-year fix or 5.2% over five years (both 60% LTV) TSB has cut selected residential rates for new business by up to 0.25 percentage points Its two-year fixed rate for home movers is now 5.74% (75% to 80% LTV) with a £995 fee Five-year fixed rates for home movers now start from 5.09% (60% LTV) The lender’s three-year fixed rates for remortgage have been cut by up to 0.2 percentage points and start from 5.64% (60% LTV) with a £995 fee Nick Mendes at broker John Charcol said: “Nationwide and TSB reacted quickly following the Bank of England rate announcement yesterday Nationwide’s last rate cut was only last week so seeing another repricing so quickly is welcome news It will be interesting to see which other lenders follow suit.” Riz Malik at broker R3 Mortgages believes many lenders will draw confidence from yesterday’s rate freeze: “High street lenders will want to capitalise on this recent decision as soon as possible I expect all the major players will have repriced at least once by early next week.” State Bank of India has launched a two-year fixed-rate deal for new buy-to-let customers at 3.9% as the mortgage price war continues to rage which requires a 50% cash deposit or equity But brokers believe it will be a mouth-watering option for many BTL investors NatWest is cutting selected residential and buy-to-let (BTL) fixed rates and tracker deals from tomorrow (21 September) its two and five-year fixed rates are cut by up to 0.2 percentage points BTL purchase rates are cut by up to 0.31 percentage points while remortgage rates are cut by up to 0.21 percentage points A range of product transfer deals (for existing customers looking for a new rate) will also be reduced The bank is offering a two-year fix for new remortgage customers at 5.84% (60% LTV) with a £995 fee and a five-year equivalent deal at 5.29% Commenting on the State Bank of India move Nick Mendes at broker John Charcol said: “This is a shock rate announcement It is more than a year since two-year fixed rates were under 4% in the buy-to-let market No other lender has broken the 4.5% barrier for two-year rates “It is likely to be a small tranche of money available so interested borrowers will need to act fast I can’t see this deal will be sustainable for very long from a cost or service level perspective.” The move by State Bank of India is part of rate cuts across two and five-year fixed rates for BTL borrowers It follows a number of lenders who cut five-year fixed rates to under 5% last week for residential borrowers It is the first time rates have been this low in many months Fixed rates have been falling due to falls in ‘swap’ rates the wholesale interest rates at which banks lend to each other Swap rates are used by banks to price fixed rate mortgage deals.  It suggests the market believes interest rates are close to their peak for this cycle The Bank of England Governor Andrew Bailey recently commented that this was likely to be the case although another rate rise is possible when the Bank’s Monetary Policy Committee meets to discuss rates tomorrow Riz Malik of mortgage broker R3 Mortgages said: “The cost of borrowing money for two- and five-year fixed rates has decreased steadily Even if the Bank of England raises the base rate tomorrow fixed mortgage rate reductions are likely to persist according to Andrew Bailey’s estimates we are approaching the top of the rate curve.  “With reduced inflation and worsening economic statistics rates are expected to stabilise and possibly fall in an attempt to support the economy during a slowdown or a recession Lenders have also been cutting fixed rates since they are falling short of their lending targets for the year They want to keep the momentum going but without being overwhelmed hence the ‘little and frequently’ rate drop tactic we’ve been seeing across the market.” the buy-to-let lending arm of Yorkshire building society are the latest lenders to slash their fixed mortgage rates as competition hots up despite a potential increase to interest rates by the Bank of England on Thursday three and five-year fixed rates by up to 0.19 percentage points for new business and existing customers looking for a new deal The bank is offering a five-year fix at 5.08% and a two-year fix at 5.7% Both deals are at 60% loan to value with a £490 fee and are available for remortgage customers or existing customers looking to switch Virgin Money is cutting fixed rates for home purchase by up to 0.22 percentage points from tomorrow (20 September) is a five-year fixed rate at 4.97% (65% LTV) with a £1,295 fee It follows Yorkshire building society and The Mortgage Works in offering sub-5% deals (see stories below) for the first time in many months Virgin will also offer a fee-free two-year fix at 5.84% (65% LTV) and a five-year equivalent at 5.15% A new range of buy-to-let deals will be launched with five-year rates starting from 5.2% (with a 3% fee) Selected residential and BTL remortgage deals will also be cut in price TSB has cut rates for existing customers looking for a new fixed rate deal and those looking for additional borrowing Its five-year fixed rates for product transfer are cut by up to 0.15 percentage points while 10-year fixed rates are cut by up to 0.25 percentage points It has also launched new residential three-year fixed rates The bank’s five-year fixed rate switcher deals start from 5.19% (60% LTV) with a £995 fee fee-free 10-year rates now start from 5.09% Its three-year fixed rates start from 5.59% with a £995 fee is cutting rates by up to 0.51 percentage points from tomorrow (20 September) Among its reduced rates the broker-only lender will offer a two-year BTL fee-free fixed rate for remortgage at 6.73% (75% LTV) and a five-year fix The next Bank of England interest rate decision is on 21 September Virgin Money and Yorkshire building society have all cut selected fixed rates across their respective home loan ranges It comes as lenders and borrowers brace for the Bank of England rate decision on Thursday Yorkshire building society has reduced selected rates including a cut of 0.46 percentage points on its 95% loan to value deal for first-time buyers The mutual has also laid down the gauntlet to other lenders offering a five-year fixed rate at under 5% The 4.99% deals with a £1,495 fee is available for both house purchase and remortgage and requires a 25% deposit or equity (75% LTV max) the specialist buy-to-let lender owned by Nationwide Building Society in bringing down five-year fixed rates under 5% TMW unveiled its 4.99% deal last week – it was the first sub-5% rate to be offered in several months (see story below) HSBC has reduced the rate on its 95% loan to value (LTV) first-time buyer mortgage to 5.89% (this is a fee-free five-year fixed rate deal) plus remortgage cashback deals up to 90% LTV.  Product transfer deals for existing customers looking for a new rate The bank’s two-year fixed rate for remortgage (at 60% LTV) is now priced at 5.78% The equivalent five-year deal is now at 5.29% Buy-to-let fixed rates for existing customers switching and borrowing more plus buy-to-let purchase and remortgage deals for new business have been cut on deals up to 75% LTV Virgin Money has cut fixed rates for home purchase It is offering a two-year fixed rate (65% LTV) at 5.6% with a £1,295 fee At the same time it has cut selected product transfer fixed rates by up to 0.10 percentage points with rates starting from 5.18% The bank has also launched new buy-to-let fixed rates with a £2,195 fee It is offering a two-year and five-year fixed rate up to 75% LTV A two-year fix at 75% LTV is 6.18%.    Optimistic brokers now expect further rate cuts across the market despite a potential increase to the Bank of England Bank Rate on Thursday this week (21 September) mortgage technical manager at online broker John Charcol says: “These rate reductions follow days of repricing by competitors proof that competition is hotting up.  we can expect high street lenders to make further reductions over the next few weeks as they jostle for new business.” is cutting fixed rates for new business by up to 0.5 percentage points from today (15 September) while Santander has cut selected fixed rates for residential purchase by up to 0.14 percentage points as a price war breaks out among leading lenders the specialist buy-to-let lending arm of Nationwide building society is offering a five-year fixed rate deal at 4.99% the first sub-5% rate to reach the market for several months borrowers must have a deposit of at least 45% and they will have to pay a 3% fee Would-be landlords with less capital to put into the property can access reduced rates through The Mortgage Works paying 0.50 percentage points less (5.04%) for a five-year fix at 65% LTV The equivalent deal at 75% LTV comes in at 5.29% As stories from past days (see below) show Virgin and NatWest are cutting rates to make themselves more competitive Among Halifax’s new deals is a two-year fixed rate for purchase at 5.64% (60% LTV) with a £999 fee and a five-year fixed rate equivalent at 5.15% At higher LTVs Halifax’s two-year fixed rate is 6.06% (90% LTV) or five-year at 5.81% (95% LTV) Fee-free options are available at a range of LTVs Santander’s new rates apply to fee-free fixed rate purchase deals over two It has also introduced fixed rate deals for purchase at 60% loan to value which include £500 cashback for first time buyers Its five-year fee-free fixed rate for home purchase is now 5.61% (85% LTV) Fee-free two-year fixed rates for purchase now start from 6.19% (60% LTV) For borrowers with a 10% deposit (90% LTV) the rate is 6.5% is cutting the cost of a range of its residential and buy-to-let fixed rates and selected tracker mortgage deals from today Among the reductions Coventry will cut rates for residential remortgage and product transfer (rates for existing customers looking for a new deal) at 50% LTV up to 80% LTV including offset and interest only mortgages It will also cut tracker rate deals at 65% and 75% LTV BTL fixed rates will be cut for new and existing customers Nick Mendes at broker John Charcol says Nationwide and Coventry have both had fixed rate deals at or close to the top of the tables in recent weeks: “Coventry has quickly revised its fixed rates after Nationwide building society gave notice of rate reductions yesterday.  “Both Nationwide and Coventry are leading the way in fixed rate pricing so to see this quick announcement is encouraging and suggests strong competition – which is good for borrowers.” Following moves by several lenders to cut fixed rates last week after Bank of England governor Andrew Bailey said interest rates were close to their peak (see stories below) Nationwide building society is cutting selected residential fixed rates by up to 0.29 percentage points from tomorrow (13 September) said swap rates (the wholesale interest rates at which banks lend to each other and which affect fixed mortgage rates) have continued to fall allowing it to make reduction to mortgage rates The biggest cuts are seen in two-year fixed rates for home purchase for borrowers with a small deposit Nationwide is offering a two-year fix at 6.44% (down by 0.29 percentage points) with a £999 fee for buyers with just a 5% cash deposit Among other highlights Nationwide also has a fee-free three-year fixed rate at 6.09% (75% LTV) Its product transfer fixed rates and deals for additional borrowing will also be trimmed from tomorrow by up to 0.14 percentage points has cut its fixed mortgage rates for residential borrowers for the second time in as many weeks are up to 0.2 percentage points and effective tomorrow (13 September).  Accord is offering a two-year fixed rate for home purchase at 5.94% (75% LTV) with a £1,495 fee a three-year fixed rate for remortgage at 5.95% (85% LTV) with a £995 fee and a five-year fixed rate for remortgage at 5.6% (90% LTV) with a £495 fee has cut rates across its core range by up to 0.9 percentage points Two-year fixed rates start from 7.24% with a 1% fee Skipton building society has unveiled its new fixed rate deals for residential and buy-to-let borrowers It is offering a two-year fixed rate for residential remortgage at 6.26% (60% LTV) with a £995 fee and a five-year fixed rate equivalent at 5.59% The number of mortgage products on the market (5,338) is at its highest level since February 2022 (when the total was 5,356) suggesting stability could be returning to the home loans market.  Average two- and five-year fixed rates have fallen since the start of August and are at 6.70% and 6.19% respectively.  But the latest quarterly statistics from the Bank of England show a subdued picture of mortgage lending and house buying While new mortgage advances (loans to be made in the coming months) picked up in the second quarter of 2023 – up 26.2% on the first quarter – at £61.7 billion the figure is 26.6% less than in the same period last year The total value of all gross mortgage advances in the second quarter was £52.4 billion which was £6.3 billion lower than in the previous quarter and 32.8% lower than the same time period in 2022 This is the lowest recorded level since 2020 More lenders are slashing the cost of borrowing following comments made by the Bank of England boss earlier this week that interest rates may be near their peak told MPs on Wednesday that the UK is now “much nearer” to the top of the current interest rate cycle This remark has been taken positively by mortgage lenders with increasing numbers announcing reductions to their fixed rates Virgin Money has cut selected fixed rate deals for residential purchase and remortgage by up to 0.69 percentage points Among the highlights its five-year fixed rate for home purchase is now priced at 5.13% (65% LTV) with a £1,295 fee The five-year fix for remortgage customers has dropped to 5.28% (60% LTV) with a £995 fee Virgin has also cut selected buy-to-let rates and product transfer fixed rates (for existing customers looking for a new deal) by up to 0.24 and 0.44 percentage points respectively Skipton building society is cutting the cost of selected mortgage deals – fixed and variable rates – from tomorrow (12 September) Fixed rates for residential and buy-to-let remortgage and home purchase will be cut by up to 0.1 percentage points and a new three-year fixed rate will be introduced At the same time the mutual will cut up to 0.15 percentage points off selected discounted variable rate deals TSB has cut fixed rates by up to 0.5 percentage points across its residential and buy-to-let products Its residential two and five-year fixed rates will be cut by up to 0.2 percentage points (for deals up to 75% loan to value) with the two and five-year fixed buy-to-let deals receiving the full 0.5 percentage point cut TSB is offering a five-year residential remortgage rate at 5.49% with a £995 fee (60% LTV) Its five-year BTL fixed rates now start from 5.39% (60% LTV) with a £1,995 fee TSB has also launched a range of fee-free remortgage deals for buy-to-let borrowers with rates starting from 5.79 per cent.  Yorkshire building society has cut rates on fixed and tracker rate products by up to 0.41 percentage points Reacting to Mr Bailey’s comments this week the society said it was seizing the “opportunity posed by positive market noises on interest rates” Its two-year fixed rates are being cut by up to 0.2 percentage points its three-year fixes by up to 0.41 percentage points and its five-year fixes by as much as 0.2 percentage points Many of its trackers also face reductions of 0.25 percentage points Among its new deals Yorkshire is offering a five-year fixed rate for remortgage at 5.31% (75% LTV) with a £495 fee and a five-year fixed rate at 5.69% (95% LTV) with a £995 fee Specialist buy-to-let lender Precise Mortgages has cut five-year fixed rates across its limited edition range Deals start from 5.24% (75% LTV) with a 7% fee NatWest is cutting the cost of fixed rate mortgage deals for new and existing customers from tomorrow It is the bank’s second rate cut in a week It comes after remarks made by Andrew Bailey to MPs that the UK is now “much nearer” to the top of the current interest rate cycle which appears to have been taken as a positive sign by mortgage lenders told brokers today that its two and five-year remortgage rates typically the most popular deals for homeowners will be cut by up to 0.12 percentage points on 8 September Its five-year fixed rates will start from 5.4% (60% LTV) with a £995 fee Deals for homebuyers will be cut by up to 0.18 percentage points while fixed rates for purchase under shared equity schemes are set to be cut by up to 0.28 percentage points The lender’s five-year fixed rate for shared equity purchase will start from 5.19% (75% LTV) with a £995 fee Product transfer deals (deals for existing NatWest customers coming to the end of fixed rates and looking for a new deal) will be cut by up to 0.3 percentage points for residential and buy-to-let borrowers Five-year residential fixed rates will start from 5.35% (60% LTV) with a £995 fee Nick Mendes at online broker John Charcol said: “NatWest has cut rates twice in a matter of days While the last rate change was minimal in comparison to competitor rates in light of the governor’s comments yesterday and swap rates (wholesale bank rates which impact on fixed mortgage rates) reducing slightly this has no doubt motivated NatWest to pass on further reductions I would not be surprised if more lenders follow suit.”  Riz Malik at broker R3 Mortgages said: “In light of Andrew Bailey’s remarks especially about potentially nearing the peak of the cycle it’s probable we’ll see further reductions in the weeks ahead Such comments likely boost lender confidence With the expectation of a sharp fall in inflation I think there is a chance of a ‘hold’ in the base rate decision before the year is out.” The next inflation figures from the Office for National Statistics will be released on 20 September The Bank of England Bank Rate announcement will be made the following day has cut fixed rates for new and existing borrowers and launched a three-year fixed rate deal as it aims for the top of the best-buy tables It is the third time First Direct has cut fixed rates in a month.  the bank has cut the cost of selected five-year fixed rates by up to 0.3 percentage points and is offering a market-leading five-year deal for remortgage fixed at 5.24% (60% loan to value ratio) with a £490 fee.  Its new two-year fixed rates start from 5.89% It has also brought out a three-year fixed rate deal for new and existing customers priced from 5.79% (60% LTV) said: “Many customers are telling us they don’t want to fix for five-years but want fixed rate options that exceed two years We have acted on the feedback we’ve received by launching this range of three-year fixed rates.” Santander is cutting selected residential fixed rate deals by up to 0.11 percentage points from tomorrow (7 September) The broker-only arm of the bank has cut two and five-year fixed rate deals for remortgage and launched new fixed rate deals at 60% LTV Deals for limited company buy-to-let will be reduced by up to 0.5 percentage points from tomorrow The lender will offer a two-year fix at 5.99% (75% LTV) with a 3% fee and a five-year fixed rate equivalent at 6.59% But while fixed rates continue to tumble as lenders fight for business standard variable rates (the rate borrowers default to after a fixed or tracker rate deal ends are inching upwards following last month’s increase to the Bank of England’s Bank rate to 5.25% will rise from 9.24% to 9.49% from 1 October for existing customers (or with immediate effect for new borrowers).  for residential borrowers who have held a mortgage with Virgin for seven years or longer The buy-to-let SVR is set to rise to 9.69% More lenders are cutting the cost of mortgage borrowing as they scramble to grab new businesses in challenging market conditions NatWest and Nationwide and Coventry building societies – all major lenders that have all cut mortgage rates in the past week – a number of smaller and specialist lenders have also announced rate cuts Specialist buy-to-let lenders Paragon and Keystone Property Finance have all cut rates in welcome news for landlords and property investors Paragon has reduced rates across 22 products in its buy-to-let range by up to 0.26 percentage points The lender is now offering a two-year fixed rate at 4.59% (70% LTV) with a 5% fee available for purchase or remortgage of single self-contained homes with EPC ratings of A to C Keystone has cut rates across all of its five-year fixed rate deals by up to 0.15 percentage points Its standard BTL five-year fixed rates now start from 5.98% (65% LTV) with a 5.5% fee Bank of Ireland has cut rates for remortgage customers in its residential and buy-to-let ranges The new rates will be effective from tomorrow (6 September) Among its residential deals it has a fee-free two-year fixed rate (60% LTV) at 5.89% and an equivalent five-year fixed rate at 5.49%.  The bank is also offering mortgage deals for green new-build homes (90% LTV) at 6.54% fixed for two years with no fee For BTL the lender has a two-year fixed rate at 6.14% (60% LTV) with no fee Market Harborough building society has slashed its fixed rates by up to 0.35 percentage points on deals available through brokers It has a two-year fixed rate at 6.29% with a £999 fee available for borrowers purchasing second homes and applicants looking for joint borrower sole proprietor mortgages has cut selected two- and five-year fixed rate mortgage deals for new and existing customers by up to 0.2 percentage points Among the changes the bank has cut its five-year fixed rate for remortgage at 80% LTV by 0.1 percentage point to 5.59% Its two-year fixed rate for newly qualified professionals (up to 95% LTV) is cut by 0.2 percentage points to 6.6% Gen H has cut the cost of two- and five-year fixed rates by up to 0.17 percentage points It is offering a five-year fixed rate at 95% LTV at 5.86% with a £999 fee has also announced rate cuts of up to 0.2 percentage points on some of its high loan to value deals from tomorrow (6 September) It comes after the mutual lender had increased the cost of a range of its BTL mortgage deals just last week Accord will offer a fee-free five-year fixed rate for house purchase (95% LTV) at 6.12% says: “It has been yet another busy day with many lenders repricing their fixed rate products down It is good to see the specialist lenders make these changes which shows the level of appetite and demand to attract business is not just limited to mainstream lenders.” Skipton building society has broadened the lending criteria on its Track Record mortgage to help more types of deposit-poor borrowers to buy a home The lender’s Track Record deal is a 100% mortgage which initially targeted renters who had never previously owned a home Skipton extended the offering to buyers who have owned in the past but have ‘fallen off’ the property ladder – perhaps due to long-term illness tenants who can evidence mortgage affordability have a solid track record of rental payments (12 months or more) and who now haven’t owned a property in the past three years can borrow without the need for a cash deposit.  The mortgage is a five-year fixed rate priced at 6.19% Applicants must be aged over 21 and the loan can be taken over a maximum term of 35 years the monthly mortgage payment under Track Record cannot be more than the average monthly rental payment the borrower has paid over the last six months if the rent has been £800 a month on average the maximum monthly mortgage payment must be no more than £800.  This is likely to restrict the maximum house price that borrowers can purchase through Track Record particularly as the interest rate has risen since it launched chief executive of home financing at Skipton said it had listened to customer feedback on the product before implementing the change She said: “There are a number of reasons why people fall off the property ladder for many the climb back onto the property ladder can be a difficult one From today we’re expanding the eligibility of the product to include renters who have previously owned a home.” the lender has received around £40 million in Track Record mortgage applications Elsewhere in the wider mortgage market lenders continue to fight for new business Nationwide building society is cutting selected fixed and tracker rate deals for new and existing customers by up to 0.15 percentage points from tomorrow (1 September) Among its new deals will be a five-year fixed rate for remortgage priced at 5.4% with a £999 fee (60% Loan To Value (LTV) and a two-year equivalent deal priced at 5.9% It will also offer a two-year tracker with a starting rate of 5.39% For existing customers moving home the lender has a five-year fixed rate at 5.19% (75% LTV) with a £999 fee and a fee-free two-year fix at 6.04% (60% LTV) It also has a five-year fix at 5.65% (90% LTV) with a £999 fee It’s the second time Nationwide has cut selected fixed rate costs in as many weeks in response to the continued easing back of swap rate prices Swap rates are the rates at which banks lend to each other and on which the cost of their fixed mortgage rate deals are priced It comes as other mortgage lenders are widening their lending criteria to align with competitors in the market and win more business in a contracting market (see story below on falling mortgage approval figures).  has said it will now consider applicants on zero-hours’ contracts and annuity income for example while earlier this week HSBC increased its maximum mortgage term from 35 to 40 years.  director and founder of mortgage broker R3 Mortgages commented: “We have seen some lenders change their criteria in an effort to accommodate additional business including the sorts of income they will accept and the maximum age the applicant can take over the mortgage.” Accord’s change in criteria only brings it into line with that of other major lenders already consider zero-hours’ contract income under certain conditions and exclusions Lenders continue to tinker with their mortgage rates as they jostle for new business or look to control their lending Coventry building society is cutting the cost of a range of its residential and buy-to-let fixed rate deals from Friday (1 September) The mutual lender is reducing all five-year fixed rates and most of its two- and three-year fixed rates for residential remortgage Deals that fall outside of the round of reductions include its two- and three-year fee-free remortgage products at 65% loan to value and its two-year 80% fee-free rate for home purchase All fixed rate product transfer deals – these are rates offered to existing customers looking for a new deal – will be cut in price except the three-year fix with a £999 fee at 80% LTV and the five-year green further advance rate at 75% LTV The majority of two- and five-year fixed rates for buy-to-let borrowers will also be cut from Friday is increasing its fixed rate mortgage buy-to-let deals for existing customers From tomorrow (31 August) Accord’s two-year three-year and five-year product transfer deals will increase by up to 0.12 percentage points Nick Mendes at mortgage broker John Charcol says the daily movements in rates by different lenders points to the ongoing volatility in the market He said: “We have seen instances where clients are holding on to the hope that fixed rates will follow a downward trajectory without any hiccups and while in an ideal world this would be a perfect scenario it would seem there remain a few hurdles to overcome before we get to that point.” Higher mortgage rates and costs of borrowing continue to have an effect on the market as Bank of England figures published today show net mortgage borrowing fell in July.  Net approvals (mortgages agreed for house purchase net of any cancellations) are considered an indicator of future borrowing and market activity There were 49,400 recorded mortgage approvals last month – down from 54,600 in June Approvals for remortgage (switching to a different lender) increased slightly from 39,100 in June to 39,300 in July buyers remain concerned about uncertainty in the wider economy and the prospect of further interest rate rises He said: “The average rate on new mortgages continued to rise in July with the market expecting the Bank of England to raise the base rate again next month and have been exceptionally volatile in the past couple of months have settled down since the encouraging dip in inflation A number of lenders have been reducing their fixed rates and borrowers will be hoping others follow suit in coming weeks.” Barclays has cut the cost of fixed rate mortgages for new residential and buy-to-let borrowers by up to 0.2 percentage points is now offering a two-year fixed rate at 5.98% with a £999 fee (60% loan to value) and an equivalent five-year fixed rate deal priced at 5.37% Major lenders have been shaving prices in recent weeks as swap rates have fallen and it’s Barclays’ second reduction to fixed rates in as many weeks So-called ‘swap’ rates are the amounts charged by banks as they lend to each other on wholesale money markets They are the rates lenders use to price their fixed mortgage rates for customers But despite the easing in fixed rate mortgage pricing offering some hope to borrowers the wider outlook for the housing market remains subdued Data published today by UK Finance in its quarterly Household Finance Review showed that borrowing for house purchase was down by almost one third in the second quarter of this year (April to June) First-time buyer purchases and home mover purchases were down 28% and 30% respectively says the significant contraction in house purchase lending is largely due to cost-of-living pressures and higher interest rates which have raised the bar for affordability limiting the ability of households to access mortgage credit It said: “The rapid increase seen in borrowing over a longer term as a means of stretching affordability looks to have reached its limit and is now falling away as the market cools.” The report also found remortgage activity was weaker with more borrowers seeking new home loan deals with their existing lender (known as a product transfer) where affordability tests are not usually required.  This could indicate cost pressures are driving more borrowers to stick with existing lenders rather than seek new deals in the external market where there is likely to be greater scrutiny and stress testing for affordability commented: “Mortgage affordability constraints and confidence will continue to show pressure for the rest of the year Many mortgage holders are tied into longer term fixed rates with a higher proportion coming out of these deals in 2024 compared to 2023 This will add pressure on future house purchase activity if rates remain high for longer than expected.” Other changes from mortgage lenders today include the following: TSB is cutting its two- and three-year fixed rate deals for new customers from tomorrow (25 August) by 0.1 percentage points.  available on deals up to 75% loan to value The new three-year fix is available up to 75% LTV for remortgage.  The bank cut fixed rates for purchase by up to 0.6 percentage points earlier in the week Lenders have been responding to falling swap rates (the rates at which banks lend to each other and on which fixed mortgage rates are based) The five-year rate has fallen to 4.810% from 5.017%.  has cut fixed rates by up to 0.25 percentage points At the same time the bank has increased its maximum mortgage loan up to £1 million for borrowers with at least a 15% deposit or equity.  The bank is offering a two-year fixed rate at 6.44% and a five-year rate at 5.74% Both remortgage deals are fee-free and available up to 75% LTV Atom also has a two-year fix at 6.19% and a five-year rate at 5.59% Deutsche Bank has predicted a further 3% fall in average house prices over the remaining months of the year as it says the market is headed for a correction rather than a crash In its economic note the bank says: “Although this has been the third most acute price correction in modern times it has done little to reverse previous gains and It qualified the prediction by saying the UK housing market was “not out of the woods” and that stubborn inflation and rising mortgage rates could further dampen market activity has cut interest rates on fixed rate deals for new and existing customers by up to 0.4 percentage points The new rates are the lender’s second rate cut in two weeks They include a five-year fixed rate for remortgage customers at 5.49% with a £999 fee (60% LTV) This deal has been cut by 0.15 percentage points putting it among the market-leading five-year fixed rates Average five-year fixed rates have fallen by 0.13 percentage points since Tuesday last week (15 August) according to data from our mortgage partner It shows that the average five-year fix is now 5.66% Among Nationwide’s other rate cuts there is: says: “As economic conditions continue to stabilise we are able to make further cuts to our mortgage rates building on the reductions we have made in recent weeks.” HSBC has cut fixed rates on selected residential and buy-to-let mortgage deals by up to 0.3 percentage points including first-time buyer deals up to 90% LTV Its five-year fixed rate for residential remortgage is now at 5.44% with a £999 fee (60% LTV) It is also offering a fee-free two-year fixed rate for BTL purchase at 6.44% (60% LTV) Virgin Money is cutting the cost of fixed rate mortgages for new and existing customers by up to 0.3 percentage points It is offering a five-year fixed rate for remortgage at 5.34% and a two-year fix at 5.9% (both deals are at 60% LTV and have a £995 fee) There is a five-year fixed rate for house purchase at 5.21% (75% LTV) with a £1,295 fee Virgin has also launched new fee-free remortgage deals with the two-year fixed rate at 6.36% and the five-year fix at 5.54% Santander has cut the cost of fixed rates mortgage deals available through brokers by up to 0.2 percentage point as the market continues to adjust to a smaller-than-expected rise in the Bank of England Bank Rate earlier this month All major lenders have reduced their fixed rates over the past few weeks.  On 14 August Santander cut fixed rates by 0.29 percentage points for new customers going direct to the bank Today its Santander for Intermediaries brand has followed that with cuts to fixed rates for residential and buy-to-let customers accessing deals through brokers The new rates will be effective from tomorrow when specific mortgage deals will be live to view on Santander’s website.  The bank will allow customers with pre-booked mortgage rates due to start on Sunday 3 September to cancel up until 10pm on Wednesday 23 August Santander does not permit cancellations within 14 days of a mortgage start date The bank has also cut fixed rates on product transfer deals available to existing customers looking for a new mortgage Elsewhere in the market lenders continue to tweak their offerings responding to swap rate movements (the rates at which banks lend to each other) and balancing business volumes: Skipton building society has cut fixed rates by up to 0.22 percentage points across its standard residential range – including its 100% Track Record mortgage deal – as lenders jostle for new business Following a fall in swap rates in recent weeks – the interbank interest rates which lenders use to price their fixed mortgage rates – all major lenders have taken a knife to their popular mortgage deals cutting costs for borrowers.  Skipton followed suit today with reduced rates which will be available from tomorrow (18 August) Rate cuts extend to the lender’s Track Record mortgage which has been reduced by 0.15 percentage points from 6.44% to 6.29% This fee-free five-year fixed rate loan is available to first time buyers with no deposit but who have proof of paying 12 consecutive months rent in the past 18 months Among Skipton’s other rate cuts is a 0.22 percentage point reduction in its fee-free five-year fixed rate at 95% loan to value from 6.24% to 6.02% There is a slight tweak to its two-year fixed rate at 60% LTV from 6.02% to 5.96% with a £1,495 fee Buy-to-let rates have also been cut by the building society Skipton is now offering a five-year BTL fixed deal at 5.62% (down from 5.74%) at 60% LTV with a £1,995 fee has also cut the cost of a range of its residential and buy-to-let mortgage deals for new and existing customers It has a two-year fixed rate at 5.92% (60% LTV) with a £999 fee The equivalent five-year fixed rate is 5.4% While Skipton and Platform’s rate reductions form part of a larger against a backdrop of continued falling inflation much higher mortgage costs in general are forcing more borrowers to extend the term of their loan to bring down monthly repayments.  According to report published today from credit reference agency Equifax four-in-ten homeowners (41%) now have a mortgage term that runs past retirement age (66) More than a quarter of these loans are held by borrowers who will be older than 70 when their mortgage matures Brokers say it is not surprising that more borrowers are extending the term of their mortgage in a bid to tackle rising living costs – but it means people are saddled with their debt for much longer commented: “We’ve seen a steady increase over the last few years of first-time buyers choosing to take the mortgage over 35 and 40 years – but they’re not the only borrowers choosing to extend their term.  “We have seen more homeowners coming to the end of their fixed rate deal looking to extend to help soften their monthly outgoing due to increased mortgage rates plus the increased costs of other household expenditure He added that lender attitudes have also changed with more now accepting terms beyond traditional retirement age – but where the mortgage must end by the age of 75 Barclays has cut the cost of fixed rate borrowing on selected loan deals It became the last of the biggest six lenders to cut rates over the past two weeks Its two-year fix for purchase and remortgage customers is cut from 6.30% to 6.13% (60% LTV) with a £1,999 fee The equivalent five-year fix is cut from 5.95% to 5.52% The bank’s two-year fixed rate fee-free deal for product transfer (85% LTV) is cut from 6.96% to 6.66% and its five-year Reward fixed rate deal Lenders have been cutting rates to reflect downward movements in so-called ‘swap’ rates – the amounts charged by banks as they lend to each other on wholesale money markets Swap rates have fallen in expectation that the Bank of England is at or is close to the end of its current trajectory of increasing the Bank Rate Today’s announcement that inflation in July fell to 6.8% from 7.9% in June will strengthen the belief that interest rates are near to top of the cycle although separate data on wage growth – running at 7.8% in the three months to June – may encourage the Bank to raise the rate to 5.5% when it next announces its decision on 21 September the belief is that lenders have already priced such an increase into their own pricing strategies for mortgage products other lenders have been adjusting their rates… Bank of Ireland is cutting fixed rates for new customers across its range from tomorrow (16 August) It is offering a two-year fix for remortgage at 85% LTV at 6.15% (down from 6.30%) with a £995 fee at 75% LTV at 5.55% (down from 5.62%) with a £995 fee five and 10-year fixed rate residential mortgage deals by up to 0.71 percentage points following a glut of lenders which is the UK’s biggest mortgage lender It is offering a five-year fixed rate for home purchase at 5.28% (down from 5.99%) with a £999 fee (60% loan to value) It has a two-year fixed rate at 6.18% (down from 6.45%) Santander has also slashed the cost of fixed rate mortgage deals for new customers Rates fell by up to 0.29 percentage points on selected residential purchase and remortgage fixed rate deals on 14 August NatWest has cut fixed rates across selected residential deals by up to 0.45 percentage points – its second rate cut in as many weeks It is offering a two-year fee-free fixed rate at 6.19% (60% LTV) and a five-year fee-free fix at 6.39% (95% LTV) – both deals are available for new borrowers purchasing property A two-year remortgage fixed rate is available at 6.54% (90% LTV) with no fee It had previously cut selected two and five-year fixed rates by up to 0.65 percentage points for new customers offering a two-year fixed rate for remortgage at 6.16% (60% LTV) with a £995 fee and an equivalent five-year fix at 5.63% The bank is also cutting fixed rates across its first-time buyer help to buy remortgage deals and buy-to-let loans five and 10-year fixed rate deals by up to 0.2 percentage points The bank is offering a 10-year fix for remortgage customers starting at 5.19% (75% LTV) with a £490 booking fee Its lowest two-year fixed rate for remortgage (at 60% LTV) is now at 5.99% with a £490 fee The equivalent five-year rate is now 5.49% HSBC has cut rates across its residential range by 0.2 percentage points on average (rate cuts range between 0.05 percentage points and 0.35 percentage points).  The lender is offering a two-year and five-year fix for remortgage from 6.09% and 5.49% respectively These deals are at 60% loan to value and have a £999 fee TSB has also cut rates on its five-year fixed rate residential deals for new customers by up to 0.4 percentage points Its five-year deals start at 5.44% for borrowers with 40% deposit or equity in their home said: “Fixed rates are on a downward trend but core inflation remains close to a 30-year high which is the area the Bank of England is targeting to bring down so we should still expect another interest rate rise in September But hopefully this marks the start of a downward trend for mortgage rates.” Mortgage lenders will be watching closely on 16 August when the latest inflation figures will be released by the Office for National Statistics If positive signs start to emerge that inflation is falling more quickly this should bring further stability to the mortgage market Virgin Money has given notice to brokers of its intention to withdraw a range of its two- and five-year remortgage deals on Thursday 17 August It has also withdrawn its five-year fixed rates with a £1,495 fee for home purchase At the same time Virgin has cut fixed rates for purchase with a £1,295 fee by up to 0.16 percentage points – new rates start from 5.23% Selected product transfer and buy-to-let fixed rates are being cut by between 0.1 and 0.14 percentage points Virgin’s five-year fix for remortgage through brokers Nationwide building society has cut the cost of its fixed rate mortgage deals for new customers by up to 0.55 percentage points following a number of lenders who also shaved rates last week is a fee-free two-year fixed rate for remortgage at 6.19% (75% LTV) and a five-year fixed rate for remortgage at 5.64% (60% LTV) with a £999 fee three and five-year fixed rates have also been cut for home movers and first-time buyers The two-year fixed rate for new customers moving home (60% LTV) is now 6.14% which cut its product transfer fixed rates last week (the rates on offer to existing customers looking for a new deal) is following other major lenders including Halifax Virgin and HSBC in cutting fixed rates for new customers.  The moves follow the Bank of England’s quarter percentage point increase to the Bank Rate The market is now predicting borrowing costs have reached or are close to their peak for this cycle said: “These latest changes build on the reductions we made last week for existing customers With swap rates having fallen from their early July peak and stabilised somewhat we are now able to reduce rates for new customers.” Mpowered Mortgages has reduced the cost of its fixed rates across its prime residential range Its two-year and five-year fixed rates for remortgage now start from 5.86% (60% LTV) and 5.49% respectively Lenders are continuing to reduce the cost of mortgage deals signalling that the cost of borrowing may have neared or even reached the top of the rate-hike cycle all of which cut the cost of fixed rates in recent days and weeks – see story below the Bank of England raised interest rates from 5% to 5.25% the latest rise – the 14th in succession by the Bank – is expected by some commentators to represent the peak of the current rate-rise cycle.  Even if the Bank Rate rises to 5.5% or 5.75% by the end of the year mortgage lenders are believed to have ‘priced-in’ the increases already as far as their own lending rates are concerned The Bank uses interest rate rises as a tool to control Inflation which fell sharply to 7.9% in June from 8.7% in May director of property finance at broker Anderson Harris said he is not expecting banks to increase fixed rates further in line with the latest announcement.    he added: “I remain concerned about the ongoing affordability for many households with mortgages who are already struggling with the cost-of-living crisis The latest rate rise will certainly heap more misery on the circa 2.2m borrowers who are paying a variable rate mortgage.” Halifax and Virgin Money – have cut rates across a range of mortgage products offering further hope that home borrowing costs may have reached their peak recent rate cuts will be cold comfort to the customers of an estimated 2.4 million fixed rate deals which end between summer 2023 and the end of 2024 On Monday the trade organisation launched its Reach Out campaign which is designed to raise awareness of the support available to homeowners struggling with higher mortgage costs The campaign follows June’s publication of a new Mortgage Charter which sets out joint commitments between the government the Financial Conduct Authority and the 43 lenders that have signed to offer more options for struggling homeowners These include switching to an interest-only loan for six months and locking in a new deal up to six months in advance. The next decision on interest rates will be taken by the Bank of England’s Monetary Policy Committee tomorrow (Thursday 3 August) with inflation still running at nearly four times the Government’s 2% target many commentators are expecting another rise Barclays have reduced rates on selected fixed-rate mortgage deals this week offering a glimmer of hope to buyers faced with soaring rates writes Bethany Garner Rates have fallen by as much as 0.40 percentage points Nationwide is reducing rates on its switcher mortgage products by up to 0.35 percentage points The provider’s switcher mortgages are open to existing members with less than six months remaining on their current deal its two-year fixed rate has dropped by 0.30 percentage points to 5.79% (when borrowers pay a £999 fee) The rate for the fee-free version is 5.99% five-year fixed rates at 60% LTV have dropped by 0.25 percentage points to 2.24% the five-year fixed rate is now 5.29% (down 0.20 percentage points) TSB has cut rates on its two-year fixed rate mortgages – also effective today.  the bank’s two-year fixed rate has dropped 0.35 percentage points to 6.09% when borrowers pay a £995 fee The fee-free version now charges a rate of 6.49% – also down 0.35 percentage points the rate for a two-year fix at an LTV of 85% is down 0.40 percentage points HSBC cut rates on a number of mortgage deals on Wednesday (26 July) – including its two-year fixed rate products Borrowers with a 40% deposit will now be offered a rate of 6.14% – down 0.10 percentage points.  Barclays has reduced interest rates across a range of fixed-rate mortgages the provider’s two-year fixed rate has decreased by 0.15 percentage points This loan comes with a product fee of £899 – its fee-free equivalent charges a higher rate of 6.12% (down from 6.27%) The lender’s five-year fixed rates have also been reduced Barclays has reduced rates for existing customers looking to renew their mortgage.   the bank’s two-year fixed rate has fallen from 6.25% to 6.10% Its fee-free equivalent comes with an interest rate of 6.44% – down from 6.59% Rates on exclusive five-year deals are also down by up to 0.15 percentage points.  Yorkshire Building Society today introduced a £2,000 ‘cashback’ mortgage designed to help first-time buyers onto the property ladder.  available exclusively to first-time buyers pays the £2,000 cashback when borrowers take out selected five-year fixed rate products at 90% to 95% LTV The society has also reduced selected mortgage rates by up to 0.30 percentage points Coventry Building Society has also cut its two and five-year fixed rate home loans for new business residential borrowers Rates will be lowered by 0.22 and 0.54 percentage points respectively The reductions include a residential purchase or remortgage product at 75% LTV fixed for two years at a new rate of 6.23% but comes with a £350 cashback or remortgage transfer service (where Coventry takes on the legal paperwork) NatWest and Virgin Money have increased selected fixed-rate mortgage deals as lenders take stock following yesterday’s inflation news Inflation fell sharply from 8.7% to 7.9% in June according to Office for National Statistics data Experts are now predicting the Bank of England may only need to increase the Bank Rate by 0.25 percentage points next month rather than 0.5 percentage points as previously.  Swap rates – the rates at which banks lend to each other and which are a marker for fixed mortgage rates – eased back yesterday Rates on two- and five-year residential fixed rate mortgages have subsequently fallen for the first time since May The average two-year fixed-rate residential mortgage rate is now 0.02 percentage points lower than yesterday (19 July) The average five-year rate residential mortgage rate is also 0.02 percentage points lower at 6.31%.   But although this will be welcome news for borrowers looking for a new deal some lenders are still tweaking their fixed rates upwards particularly for customers with a smaller deposit or modest equity in their home NatWest has increased fixed rates for new purchase and remortgage customers effective today (20 July) by up to 0.4 percentage points.  Fixed rates for purchase at 95% loan to value rise by 0.4 percentage points while deals at 90% LTV increase by up to 0.3 percentage points Two and five-year fixed rates for remortgage at 90% LTV are increased by up to 0.3 percentage points.  The bank’s two-year fixed rate for home purchase (90% LTV) with a £995 fee is now 6.74% NatWest’s two-year fixed rate for existing customers looking to switch to a new deal (product transfer) have increased by 0.25 percentage points while selected five-year product transfer deals have been cut by 0.05 percentage points Virgin Money has also increased a range of its fixed rate deals this morning three and five-year fixed rate deals for remortgage through brokers have been increased by up to 0.22 percentage points.  The lender’s two-year fixed rate for remortgages starts from 6.31% (65% LTV) with a £995 fee or from 5.56% for the equivalent five-year deal.  The lender has also unveiled a new seven-year fixed rate deal for remortgage at 60% LTV at 5.2% three and five-year fixed rates have been increased by up to 0.27 percentage points Two-year fixed rates start from 6.12% (65% LTV) or from 5.51% over five-years TSB has increased the cost of selected purchase and remortgage fixed rates shared ownership deals and fixed rates in its buy-to-let range by up to 1.05 percentage points Its two-year fixed rates for new customers (purchase and remortgage) are going up by 0.15 percentage points and now start from 6.39% (60% LTV) State Bank of India has also increased selected fixed rates across its buy-to-let range Its five-year fixed rates for standard BTL borrowers start from 6.1% with a 2% fee (75% LTV max) The next Bank of England interest rate decision is due on 3 August More lenders have announced increases to the cost of their fixed rate mortgage deals as the market braces for inflation news tomorrow Principality building society has said it will increase fixed rates for new residential customers at higher loan to value (LTV) ratios from Thursday three and five-year fixed rates for remortgage customers at 85% 90% and 95% LTV will increase by up to 0.2 percentage points Its new two-year fixed rate (85% LTV) will be priced at 6.55% Saffron building society is withdrawing a number of deals contractor and buy-to-let mortgages.  Its new rates are likely to be priced higher as the mutual responds to changing market conditions Specialist buy-to-let lender Lendco has announced it is increasing selected fixed rates in its range including its popular five-year fixed rate product transfer deals (for existing customers looking for a new deal) At the same time Lendo has withdrawn all of its two-year fixed rates is also increasing fixed rates by up to 0.55 percentage points for standard BTL two-year fixed rates and by up to 0.5 percentage points for limited company BTL The changes are effective from tomorrow (19 July).  In its note to brokers Together said the reprice was “due to the ongoing challenges with funding costs.” Borrowers looking for a new mortgage could be facing further cost increases if inflation does not fall significantly when the latest figure is published by the Office for National Statistics at 7am tomorrow While expectations are that there should be a fall from the 8.7% inflation figure recorded for May (published last month) to around 8-8.2% anything higher than this will pile more pressure on the Bank of England’s Monetary Policy Committee to make further interest rate increases.  This could potentially mean an increase of 0.5 percentage points in August (which would take the Bank Rate to 5.5%) rather than 0.25 percentage points rise many had been expecting Coventry building society is increasing the cost of its fixed rate borrowing for new residential and buy-to-let customers from Wednesday (19 July) will withdraw residential remortgage and BtL fixed rates Higher-priced fixed rates for new residential borrowers and buy-to-let customers will launch at 8am on 19 July But despite Coventry’s move and a small number of other lenders tweaking selected rates upwards (see round-up below) brokers are not expecting further increases across the board to fixed borrowing rates.  That is unless the latest ONS inflation measure shows inflation has not fallen significantly It was recorded at 8.7% in May when the figure was published last month said it feels as though the markets are taking a breath and waiting for the inflation figure: “Markets are trying to second guess whether inflation has come down or will remain stubborn.  “Initial signs are that the market is expecting to see core inflation fall slightly in June But if the rate does not fall significantly it is likely to mean interest rates will have to rise another 0.5 percentage points rather than 0.25 That could set off further increases to fixed mortgage rates.” Coventry’s fixed rates for residential borrowers at 80% loan to value and buy-to-let deals for new borrowers at 75% LTV are being withdrawn There are no changes to product transfer deals for existing customers looking for a new fixed rate deal TSB is increasing the cost of its five-year fixed rates for new customers by up to 0.5 percentage points Five-year fixed rates for home purchase (which includes first-time buyers and home movers) now range from 5.79% (at 60% loan to value) up to 6.54% (at 95% LTV) A five-year fixed rate for remortgage will now start at 5.79% (60% LTV) or at 6.34% (95% LTV) Fee-free options are available with TSB but it usually means borrowers pay a higher fixed rate TSB follows most other major lenders in hiking borrowing costs since the Bank of England increased the Bank Rate to 5% last month Virgin Money and Santander have all increased fixed rate deals this week The average cost of a two-year fixed rate residential mortgage is creeping close to 7% Average two-year rates rose to 6.78% this morning – up from 6.75% yesterday Five-year fixed rate residential mortgages also continue to rise The average five-year fix in the market is at 6.30% today Further evidence has emerged that increased mortgage costs are causing financial distress for growing numbers of borrowers.  Legal & General’s mortgage platform Ignite reported a 53% increase in searches for interest-only mortgages in June Paying only the interest on a mortgage means a lower monthly cost compared to standard repayment mortgage which repays the capital debt as well as the interest only borrowers who meet strict eligibilty requirements have a chance of being offered an interest-only mortgage according to David Hollingworth at broker London & Country Mortgages He said: “There will usually be limits on the maximum loan to value and some lenders also impose a minimum income requirement.” While the sale of a property may be accepted by some lenders as a repayment vehicle (to pay off the capital at the end of the term) a minimum amount of equity will be required which could amount to “several hundred thousand pounds,” he added Santander has increased selected fixed rates for new customers by up to 0.3 percentage points It is the bank’s third rate increase in as many weeks having increased fixed rates on 26 June and 5 July Fixed mortgage rates continue their upward climb due to volatility in the market Many lenders have withdrawn fixed-rate deals at short notice as they struggle to cope with high business demand when their rates are at the lower end of the market The rates are inevitably increased when they are reintroduced Santander has increased fixed rates for purchase and remortgage deals for new residential and buy-to-let customers The bank’s two-year fixed rate for remortgage (75% LTV) has risen to 6.14% from 5.94% The five-year equivalent fix is now 5.59% (up from 5.39%) It has also launched new fixed rates for larger loans (£250,000 to £3 million) Purchase fixed rates are at 6.44% for two years or 6.14% for five years and remortgage fixed rates are at 6.76% for two years or 6.5% over five years.  All deals are up to a maximum 70% loan to value and have a £2,499 fee Barclays and NatWest have unveiled higher fixed rates for mortgage borrowers with some deals increased by up to 1.25 percentage points The news comes as Bank of England figures out today show one million residential mortgage holders will be paying £200 a month or more extra for their home loan by the end of the year It is feared some borrowers may be paying £500 per month more for their mortgage by 2026 Barclays has increased fixed rates across its range from this morning (12 July) The bank’s popular two-year fixed rate remortgage deal has gone up by 0.35 percentage points to 6.28% (60% LTV) with a £999 fee.  The equivalent five-year fixed rate has been tweaked upwards to 5.67% from 5.62% NatWest has increased fixed rates for residential remortgage purchase and first-time buyers by up to 0.38 percentage points Fixed rates for buy-to-let borrowers have risen by up to 1.25 percentage points.  Among the bank’s owner-occupier deals are a two-year fixed rate at 6.44% and five-year fixed rates from 5.99% (75% LTV) with a £995 fee.  The two-year fix with a £995 fee (60% LTV) has risen to 6.49% from 5.24% In its Financial Stability report published today the Bank of England says increased interest and mortgage rates could lead some households to struggle to afford their repayments and even default on their debt Its figures reveal the extent of mortgage rate increases for homeowners with statistics suggesting around one million borrowers will be paying at least £200 a month more for their mortgage by the end of the year.  Around three million mortgage holders will face the same prospect by the end of 2026 And one million households will see increases to their monthly repayments of £500 or more over the next few years But the Bank of England said:“Although the proportion of income that UK households overall spend on mortgage payments is expected to rise it should remain below the peaks experienced in the Global Financial Crisis and in the early 1990s.  “UK banks are in a strong position to support customers who are facing payment difficulties This should mean lower defaults than in previous years in which borrowers have been under pressure.” Following government intervention last month mortgage lenders agreed to sign up to a mortgage charter aimed at supporting borrowers in financial difficulties due to rising rates.  that borrowers can opt to restructure their loan such as increasing the overall term of the mortgage or switch to interest-only for up to six months These options will not affect the borrower’s credit score Barclays and NatWest are increasing the cost of selected fixed rates for new customers from tomorrow (12 July) It comes as bosses at a number of high street lenders were grilled earlier today by the Treasury Select Committee over high rates for borrowers Both Barclays and NatWest have given notice to mortgage brokers today of their intention to increase fixed rates Higher rates are expected to be unveiled tomorrow morning Moneyfacts says the average two-year fixed rate has hit 6.66% up from 6.63% yesterday (10 July) and the highest level for short-term fixed rates in 15 years It takes the cost of two-year fixed rates above the peak seen in October last year – when they reached 6.65% – after Kwasi Kwarteng’s mini-budget spooked the markets The average five-year fixed mortgage rate is at 6.17% This morning bank and building society bosses – Andrew Asaam from Lloyds Banking Group Charlotte Harrison from Skipton building society Henry Jordan from Nationwide building society and Nigel Terrington of specialist lender Paragon Banking Group – met with the MPs to discuss mortgage and property markets They fielded questions from the Committee about high mortgage rates and potential arrears problems for first-time buyers and issues in the buy-to-let market Committee Chair Harriet Baldwin MP asked about the significant rise in mortgage costs for borrowers and potential increases to arrears But all the bank bosses said they were not seeing a particularly large jump in arrears Mr Fordham at Santander said the bank had seen a ‘small tick up in arrears’ but that levels were around 20% below pre-pandemic figures and 70% below 2009 post-financial crisis levels and were considered by the bank to be ‘relatively low’.  The banks were asked about what longer term fixed rates they had available for remortgage customers which could offer greater stability around payments All responded that although 10-year fixed rates were available and in many cases were cheaper than short-term fixed rate equivalents take up was low and customers preferred the flexibility of two-year fixed rates Dame Angela Eagle MP asked the panel why mortgage rates were so much more expensive than average borrowing costs in France and Germany.  Mr Assam of Lloyds said there were a number of factors involved but the main driver in recent months has been the rising funding costs due to higher swap rates – the interest rates the banks use to lend to each other in the wholesale markets Swap rates have spiked in recent months as markets expect the Bank of England Bank Rate will continue to climb potentially reaching a peak of 6.5% this year Virgin Money is increasing selected fixed rates across its range – its third rate increase since the Bank of England raised interest rates on 22 June It follows a further increase to fixed rates by HSBC as lenders adjust to new market conditions Virgin’s rates will increase from tomorrow (11 July) on some of the bank’s most popular fixed rate deals for remortgage A range of its buy-to-let fixed rates will also rise in cost The bank’s two-year fixed rates for remortgage will rise by 0.35 percentage points with new deals starting at 6.26% while five-year rates are set to rise by 0.3 percentage points Buy-to-let fixed rates for remortgage will increase by up to 0.35 percentage points to start at 5.36% Among product transfer deals – for existing Virgin customers looking for a new deal – its fixed rates will rise by up to 0.4 percentage points with new deals starting from 5.18% Buy-to-let product transfer deals are also going up by the same amount with new deals starting at 5.53% the rate on the lender’s Freedom to Fix tracker has been cut by 0.02 percentage points and has a new start rate at 5.23% (it tracks at 0.23 percentage points above the Bank of England Bank Rate) This rate is available at 65% loan to value Borrowers can choose to fix at any time with no penalty by switching to one of Virgin’s fixed rate deals HSBC has increased its most popular fixed rate mortgage deals by as much as 0.6 percentage points The bank had already increased rates by up to 0.8 percentage points on 28 June.  Its two-year fixed rate for remortgage customers with 40% equity or deposit is 6.24% (up from 5.79% last week) and its five-year fixed rate is now priced at 5.84% (also 60% loan to value) For remortgage borrowers with 15% deposit or equity (85% LTV) HSBC’s two-year fixed rate is now 6.29% and its five-year rate is 5.89% The cost of buy-to-let borrowing has also gone up Two-year fixed rates now start from 5.84% (60% LTV) with a £1,999 fee Five-year fixed rates with the same fee start from 5.39% HSBC is increasing the cost of its fixed rate mortgages for new and existing customers from Monday (10 July) as it responds to ongoing turmoil in the markets Swap rates – the interest rates at which the banks lend to each other and which help determine the price of fixed rate mortgages – have continued to climb over recent days Many lenders have increased their fixed rates at least twice within a week HSBC notified brokers late yesterday (6 July) that it would be increasing fixed rates again for remortgage customers first time buyers and existing customers looking for a product transfer deal. The bank will withdraw rates for new residential applications through brokers at 5pm today Fixed rates for existing applications via brokers and direct applications will remain open until midnight on Sunday (9 July) Buy-to-let rates and fixed rates for international residential purchase are also set to increase It follows increases to HSBC’s fixed rates of up to 0.8 percentage points on 28 June The bank’s new fixed rates will be unveiled on Monday and they could be significantly higher than its current deals said: “While the majority of high street lenders have already made substantial increases to their rates since the Bank Rate went to 5% the past few days have seen a significant jump in swap rates Different asset management firms have revised their expectations for further interest rate increases “Despite high street lenders sitting outside of the best buys HSBC has made the decision to yet again increase rates The question now is whether the other high street lenders will follow and increase their rates today.” Here’s our round up of today’s rate changes Keep coming back to this page to see which lenders have withdrawn products or increased their fixed rate deals: have both increased selected fixed rates again for new borrowers Halifax has increased fixed rates again for remortgage customers – it follows two rounds of rate increases last week And Santander previously increased its residential fixed rates for new customers – for remortgage and purchase – on 26 June Halifax is now offering a two-year fixed rate for remortgage at 6.21% or a five-year rate at 5.83% both with a £999 fee (for loan to value ratios of between 60% and 85%) Fixed rates over 10 years start from 5.43%.  Santander has increased fixed rates for residential purchase by up to 0.36 percentage points while remortgage fixed rate deals have gone up by up to 0.33 percentage points It is offering a two-year fixed rate for remortgage at 5.94% and a five-year deal at 5.39% Both deals require a 25% deposit or equity in the property and charge a £999 arrangement fee At the same time Santander has increased its fixed rates for buy-to-let purchase and remortgage by up to 0.37 percentage points.  TSB is increasing the cost of its fixed rate mortgage deals as research shows the average five-year fixed rate has risen above 6% TSB will raise the price of a range of its fixed rates for residential and buy-to-let customers It follows the bank’s increase of up to 0.35 percentage points to its fixed rates on Wednesday last week (28 June) Its two-year fixed rate for home purchase or remortgage will increase by up to 0.4 percentage points New rates will be released tomorrow morning but TSB’s current two-year fixed rate for remortgage borrowers with at least 40% equity or deposit is 5.74% with a £995 fee Two and five-year fixed rates for product transfer (rates available to existing TSB borrowers looking for a new deal) and two-year fixed rates for additional borrowing will also rise by up to 0.4 percentage points.  Two and five-year fixed rates for buy-to-let customers (both new business and existing customers looking for new deals) are set to rise by up to 0.6 percentage points Currently TSB’s five-year fix for BTL remortgage is 5.24% with a £995 fee ( 60% LTV) Fixed rate mortgages have continued to climb following the Bank of England’s decision last month to raise interest rates from 4.5% to 5% Many pundits now believe rates could rise even higher this year Average five-year fixed rate residential deals are now at 6.01% (up from 5.97% yesterday) while average two-year fixed rates are at 6.47% The average standard variable mortgage rate is 7.67% The last time the average five-year fix was above 6% was on 21 November last year This occurred in the wake of the Autumn mini budget which caused turmoil in the markets and led to a rapid increase in the cost of borrowing Coventry building society and a number of smaller lenders are increasing the cost of fixed rate mortgages for new and existing customers looking for a new deal The moves follow increases by major lenders last week including Halifax NatWest and Virgin Money (see stories below) The interest rates at which the banks lend to each other in the wholesale markets – so-called swap rates – continued to climb last week obliging most lenders to reprice their fixed mortgage rates at least once with some tweaking rates a number of times at short notice which was at 5.775% on Thursday last week (29 June) is at 5.865% today The five-year rate has inched up from 4.952% to 5.022% over the same time frame three and five-year fixed rate deals available through brokers from 8pm tomorrow (Tuesday 4 July) and will relaunch a new range Its rate increases will affect new customers looking to remortgage existing customers who are ‘porting’ their mortgage because they’re moving home and existing customers looking for a product transfer deal or to borrow more on a further advance.  Two and five-year buy-to-let fixed rates for new customers and existing customers looking for a product transfer are also set to rise Among other lenders announcing changes are: Major lenders are continuing to increase the cost of borrowing as the market remains volatile has increased its fixed rates across the board Its two-year and five-year fixed rates for remortgage customers (at 60% LTV) are now priced at 5.51% (up from 5.36%) and 5.12% (up from 4.89%) respectively Virgin Money has announced its second increase to fixed rates in less than a week The bank will raise selected residential and buy-to-let rates (BTL) for new and existing customers from 8pm this evening.  It has said its two-year fixed rates for remortgage will increase by 0.1 percentage points with deals starting from 5.91% and selected five-year fixed rates will rise by 0.08 percentage points Two-year fixed buy-to-let rates for new customers will rise by 0.1 percentage points will also rise by up to 0.15 percentage points It follows a rate rise by Virgin of 0.15 percentage points to a range of its fixed rate deals on Monday this week NatWest is increasing fixed rates for new and existing customers and buy-to-let borrowers Among the increases are rate hikes of up to 0.35 percentage points for purchase deals and up to 0.29 percentage points for remortgage deals Its two-year fixed rate for remortgage (75% LTV) will be 6.21% with a £995 fee and its equivalent five-year fixed rate will be 5.84% A number of smaller lenders have also announced either a withdrawal of mortgage deals The average two-year fixed rate across the market is now priced at 6.37% and the average five-year fix is 5.94% HSBC and Nationwide have announced big increases to their fixed mortgage rates Nationwide building society will increase its fixed rates by up to 0.35 percentage points from tomorrow (29 June) This includes fixed rates for new customers and existing customers looking to switch to a new deal as well as those looking for additional borrowing and home movers.  Earlier today HSBC unveiled its new fixed rate mortgage range which includes large increases to the rates on its popular two and five-year fixed rate remortgage deals Two-year fixed rates for new customers have been increased by up to 0.8 percentage points The bank offered market-leading fixed rates until yesterday but following the Bank of England interest rate rise last week and due to the high demand for its relatively low fixed rates HSBC announced yesterday it would be increasing all fixed rates HSBC’s two-year fixed rate for remortgage borrowers (at 60% LTV) is now 5.79% (up from 4.99%) while its five-year rate (also 60% LTV) is 5.29% (up from 4.56%) Fixed rates at higher LTV ratios have seen similar increases three and five-year fixed rates across the board plus existing customers looking to borrow more its two-year fixed rate for home movers (80% LTV) is at 5.79% The same deal for three years is priced at 5.59% or 5.39% over five years – all deals have a £999 fee Existing customers looking to switch to a new deal (product transfer rates) can get a two-year fixed rate at 5.38% or a five-year fix at 4.99% (both have £999 fees) And remortgage deals for new buy-to-let customers (60% LTV) include a two-year fixed rate at 5.54% or a five-year fix at 5.19% (£1,999 fees apply).  said: “It’s a bitter blow for mortgage holders trying to secure a remortgage deal.  “Mortgage rates are now much higher than many households will have experienced before Homeowners currently approaching the last seven months of their fixed rate or currently on a variable rate should take action quickly or risk the prospect of needlessly paying a much higher rate.” Other lenders continue to reprice their fixed rate deals upwards in reaction to the Bank of England interest rate rise is increasing selected fixed rate deals by up to 0.56 percentage points from tomorrow (29 June) Current deals remain available until 10pm this evening Accord will also launch a five-year fixed rate offset mortgage with rates starting from 5.75% (60% LTV) and with a £1,495 fee Bank of Ireland (BoI) is withdrawing residential rates available through brokers under its Bespoke mortgage arm from 6pm today (28 June) The Bespoke range offers more flexible criteria than BoI’s standard mortgage range HSBC is increasing the cost of its fixed rate mortgages from tomorrow (28 June) A spokesperson at the bank said: “We’re firmly focused on supporting customers in the current environment we have to reflect significant market movements in our mortgage rates Product transfer deals for existing HSBC customers international applications and buy-to-let rates through brokers will be available at current rates until midnight tonight (27 June) Current rates for new residential applications through brokers  – for purchase and remortgage – will be available only until 5pm today TSB has said it is increasing the cost of its two and five-year fixed rates for purchase and remortgage by up to 0.35 percentage points from tomorrow (28 June) product transfer deals and additional borrowing fixed rates will also increase at the same time The bank’s two-year fixed rate for remortgage will start from 5.74% (60% LTV) and five-year remortgage rates from 5.34% (60% LTV) said: “HSBC has taken four times the normal level of business in the last few days due to its highly competitive fixed rates but this is putting pressure on service levels.  and the bank is clearly trying to balance the extra workload with a reduced capacity to process applications “With Santander withdrawing its deals yesterday (see story below) HSBC simply had no choice It will want to avoid sitting on the top best buys for the next few weeks while it manages its current workload.” Santander and Virgin Money both increased the cost of their fixed rate mortgages yesterday Other leading lenders are expected to follow suit in the coming days as the market settles following last week’s interest rate rise by the Bank of England Santander and Virgin Money, two of the market’s biggest mortgage lenders, are increasing the cost of home loans following last week’s interest rate rise Santander is increasing residential fixed rates on remortgage deals by up to 0.46 percentage points The bank is also pulling all of its two- and five-year fixed rate deals at 60% loan to value – although its three-year fixed rate will still be available Buy-to-let fixed rates will rise by up to 0.42 percentage points mortgage applications must be submitted by 10pm tonight with new rates kicking in tomorrow.  There will be no change to the bank’s standard variable rate (SVR) announcing it will increase its fixed rates from 8pm this evening Fixed rates for residential remortgages will rise by up to 0.15 percentage points with five-year fixed rates now starting from 5.15% Virgin has also increased fixed rates for buy-to-let borrowers by up to 0.15 percentage points with five-year rates starting from 5.05%.  Product transfer deals – those rates available to existing Virgin customers looking for a new deal – will also rise by up to 0.15 percentage points The lowest five-year fixed rate for product transfer will start at 5.01% It is one of the highest SVRs in the market The cost of borrowing has soared in recent weeks as lenders have pushed up their fixed mortgage rates in anticipation of higher interest rates.  The average two-year fixed mortgage rate is now around 6.23% according to data compiler Moneyfacts – a seven month high. By comparison average two-year fixed rates stood at 5.26% last month after the Bank of England’s Bank Rate decision Mortgage lenders have agreed to offer greater flexibility to customers who are struggling with mortgage payments and will wait 12 months before repossessing homes following an emergency summit meeting with the Chancellor Santander and Virgin Money to the crisis summit following the shock rise in the Bank of England Bank Rate from 4.5% to 5% yesterday.  There is widespread concern among charities and consumer groups that rising interest rates are putting increased pressure on households and that this could lead to far bigger numbers facing financial distress and hardship These options can be taken with ‘no questions asked’ and none of the above will require new affordability checks or affect the borrower’s credit record or score But the options are intended only as temporary measures to help reduce mortgage costs in the short-term and borrowers will usually need to switch back to their previous mortgage terms after six months for borrowers falling behind with repayments it was agreed that customers would not be forced to have their homes repossessed within 12 months from their first missed payment.  Ordinarily repossession action can sometimes start within a matter of a few months of missed mortgage payments Similar arrangements were put in place during the Covid 19 pandemic when there was a pause on all home repossessions Lenders have been told they should also offer ‘tailored support’ on a case by case basis which could involve giving a borrower a total break on mortgage payments But borrowers taking this option need to be aware this will negatively affect their credit record and could impact on their ability to borrow in future A report published by the National Institute for Economic and Social Research this week found that average monthly mortgage repayments will jump by almost 50% – this is above the typical stress-test households are subjected to when applying for a mortgage It also found the average fixed rate monthly repayment will rise from £700 to £1,000 This will affect up to two million borrowers who need to remortgage this year The research group concluded one million more households will be left ‘insolvent’ (with no savings) this year as a result of paying higher mortgage bills taking the total proportion of households with no savings to 7.8 million (30%) The FCA has already been working with mortgage lenders over the past year to ensure they offer flexibility and greater forbearance to any households who might be struggling as a result of rising interest rates and the increased cost of living It published guidance to help lenders dealing with borrowers in financial difficulty in March last year and says its Consumer Duty regime will further strengthen support for customers to ensure they are treated fairly Mr Rathi said: “Today’s productive meeting builds on the work we’ve done over the last year to ensure those who get into difficulty receive the tailored support they need We’ll move quickly to make any changes needed to support today’s commitments.” said the measures could have gone further: “It’s a positive step forward and will provide some mortgage-holders a short period of relief But it looks like a deal which goes against the Bank of England’s policy to reduce inflation.  “It also would have also been encouraging to see some help for landlords as they also face higher costs on buy-to-let loans which in turn is putting pressure on tenants.” Lenders are expected to react in the coming days to the Bank of England’s latest rate rise by increasing the cost of their mortgage deals and standard variable rates But some early movers are showing restraint in welcome news for borrowers The Bank increased its main lender rate from 4.5% to 5% earlier today most variable rate and tracker mortgage holders will feel the effect from their next scheduled payment Those on fixed rates will face higher rates when their current arrangement expires In a welcome move for some of its variable rate customers Santander says it will not increase its standard variable rate (SVR) currently at 7.5%. Customers on tracker rate deals will see their rate rise from the start of August Skipton building society says it is increasing its mortgage variable rate (MVR) but only by 0.25 percentage points (not the 0.5 percentage point increase announced by the Bank of England today).  Skipton borrowers paying the MVR will see their rate rise from 6.54% to 6.79% Last month Skipton did not pass on any of the May interest rate rise to its mortgage variable rate customers Skipton’s MVR is equivalent to a lender’s SVR It is the rate borrowers revert to after a fixed rate or tracker deal ends if they do not switch to a new fix or tracker deal.  In reality relatively few borrowers are on their lender’s SVR compared to fixed rates as SVRs tend to be much higher than the average fixed rate deals in the market.  According to the Financial Conduct Authority around 1.9 million homeowners are paying variable rates although this includes tracker and discounted rate deals as well as SVR.  puts the number of standard variable mortgages at 773,000 Leeds building society has increased the cost of selected fixed rates including some shared ownership deals Its three-year fixed rate for residential remortgage has been withdrawn Borrowers are braced for more bad news at lunchtime today as the Bank of England is expected to raise interest rates If rates go up it will be the 13th consecutive rate rise by the Bank since December 2021 and will pile misery onto millions of mortgage borrowers coming to the end of cheap fixed rates 45% of mortgage holders – almost seven million adults – have found it difficult to keep up with bills and credit commitments in the last few months is increasing the rates on product transfer deals  – those rates on offer to existing customers coming to the end of a deal – by up to 0.75 percentage points Existing customers can bag a two-year fix at 5.64% or a five-year fix at 5.24% but only if they have at least 25% equity in the property The bank has also increased its fixed rates for new customers by up to 0.3 percentage points from this morning.  Borrowers looking for a remortgage with the bank are facing two-year fixed rates at 5.94% or five-year fixed rates at 5.64% and again that’s only if they have at least 25% equity in their property Rates are higher for those with less equity TSB has also increased rates for new and existing customers by up to 0.4 percentage points Its two-year fixed rate remortgage deal is now priced at 5.54% (60% LTV) and its five-year fix is 5.04% The Bank of England’s Monetary Policy Committee (MPC) will announce its latest decision on interest rates at 12 noon today The benchmark Bank Rate is currently at 4.5% Nick Mendes, mortgage technical manager at online broker John Charcol, says the markets are already responding negatively to yesterday’s inflation figures (inflation has remained at 8.7% There is growing concern that the Bank of England seems to be unable to bring inflation down as quickly as had been hoped Mr Mendes said: “My expectation is we’ll see lenders provide forward notice of rate increases rather than product withdrawals today Most lenders have already priced in a rate rise today but the Bank Governor’s notes following the MPC meeting will drive market sentiment Virgin Money is increasing the cost of borrowing for new customers and existing ones looking for a new deal as pressure continues to build in the home loan market The Bank of England will announce the last Bank Rate decision at noon on Thursday with most commentators expected a rise of at least 0.25 basis points from its current level of 4.5% Virgin says selected rates will increase from 8pm today Its two-year fixed rates for new customers will increase by up to 0.6 percentage points and deals will start at 5.66% Five-year fixed rates will increase by up to 0.4 percentage points and will start from 5.1% Buy-to-let fixed rates will also increase – by up to 0.35 percentage points for two-year fixes and up to 0.3 percentage points for five-year fixed rates The rates on deals for existing Virgin Money customers looking for a product transfer are also going up Two-year fixed rates are increasing by up to 0.42 percentage points and will start at 5.47% and five-year fixed rates are rising by 0.38 percentage points and will start from 4.96% TSB has also said it will increase the cost of borrowing with higher rate deals being launched tomorrow (Wednesday 21 June).  The bank is increasing two and five-year fixed rates for purchase by up to 0.4 percentage points and the same fixed rates for remortgage by up to 0.25 percentage points for existing customers looking to switch deals will also rise by up to 0.25 percentage points Santander has bucked the recent trend of serial rate increases by major lenders by announcing that it is holding its mortgage rates It follows increases across its product range last week when deals rose in cost by up to 0.65 percentage points Lenders are continuing to announce to withdraw existing deals and launch higher fixed and tracker rates as borrowers brace for another rise in interest rates by the Bank of England on Thursday (22 June) Recent increases to fixed mortgage rates across the market mean that borrowing costs have soared for those on variable rates and those looking to remortgage or switch to a new deal.  It is thought over 500,000 people will come to the end of their fixed rate mortgage deals during the remainder of 2023 According to online mortgage broker Better the average two-year fixed rate is now at 5.39% and the average five-year fix is 4.96% chairman at NatWest and a former Bank of England deputy governor has said he feels the Bank of England could “wait a bit” and not increase the Bank Rate again this week when the Monetary Policy Committee meets to decide on rates.  Mr Davies said: “’In the past when we’ve had significant rises in interest rates – say before the last financial crisis – the mortgage market in this country then was largely variable rate by the end of the following month everybody was paying more on their mortgages ‘Now we have a mortgage market where most people are on a fixed rate for a while you don’t have much impact because you only have an impact on the small number of people paying variable rate and on the people whose fixed rate just happens to come up at that point for renewal.  it’s arguable that the interest rate rises that we’ve already seen have not yet fed through [and had an impact] on consumer spending.’ Here’s our latest round-up of lender rate announcements and changes: Major mortgage lender HSBC is increasing the cost of fixed rate deals through brokers by up to 0.35 percentage points has repriced its fixed rate offers in recent days to reflect changing market conditions This latest hike is the second time HSBC has increased its rates in less than a week Lenders are pulling their fixed and tracker rate offers at short notice to reprice higher as swap rates (the interest rates banks use to price their fixed mortgage rates) have risen rapidly ahead of an expected increase in the Bank of England Bank Rate next week..  The Bank Rate – currently 4.5% – is expected to rise to 4.75% or even 5% when the Bank’s monetary policy committee meets on Thursday (22 June) Economists are predicting it will rise to 5.5% by the Autumn first-time buyer deals as well as to product transfer rates for existing residential and buy-to-let mortgage customers.  It is offering a two-year fix for home purchase at 85% loan to value at 5.64% – 0.2 percentage points higher than yesterday Its five-year fixed rate for new remortgage customers is now 4.88% (60% LTV) – up 0.24 percentage points.  The two-year product transfer rate for existing customers looking to switch is 4.99% (60% LTV) – up 0.27 percentage points Buy-to-let rates have increased by up to 0.35 percentage points An HSBC spokesperson said: “Our focus remains to support customers through current pressures and providing access to good deals over recent days the cost of funds has been increasing and we have to reflect that in our mortgage rates.”    Nationwide is increasing the cost of fixed rates for new business and existing customers looking to transfer to a new deal by up to 0.7 percentage points from tomorrow (16 June) The building society’s two-year fixed rate deal for remortgages will be priced at 5.74% (60% LTV) or 5.25% for a five-year fix The increases follows hikes of up to 0.25 percentage points to fixed rates by the lender last week Clydesdale Bank has also announced it is removing all new business products from sale at 5pm today and will relaunch next week Product transfer rates for existing customers remain available Bath and Family building societies withdrew mortgage products from the shelves yesterday (14 June) and are expected to launch new repriced rates in the coming days HSBC is increasing the cost of mortgage borrowing – its second rate rise in a week – against a backdrop of predictions that the Bank of England could raise base interest rates from 4.5% to 5% next week The HSBC move will affect new customers and existing ones looking for a new product when their existing one comes to an end Its two- and five-year fixed rates for remortgage and product transfer (for existing customers looking for a new deal) home mover and buy-to-let fixed rates will increase from tomorrow (15 June).  Current rates will be withdrawn from the market at 5pm today.  The lender relaunched its fixed rate range for new business on Monday after temporarily pulling out of the broker market at the end of last week Coventry building society is also withdrawing rates for new residential and buy-to-let customers along with product transfer deals for existing customers It is also suspending the sale of tracker deals indefinitely from 8pm tomorrow (15 June).  It will launch its new range of deals on Friday morning with brokers saying they are braced for higher rates Santander has relaunched its range this morning after pulling out of the market for new residential and buy-to-let deals on Monday Some fixed rates have increased by up to 0.65%.  It is offering a five-year fixed rate at 4.83% (60% LTV) with a £999 fee But with the market so volatile brokers predict the bank could increase rates again said: “Markets now expect the Bank of England will raise interest rates by half a percentage point to 5% next week.  “We’ve seen big leaps in swap rates reflecting this sentiment I’d be surprised if any lender could now afford to offer a two or five-year fixed rate at under 5%.” Swap rates are the interest rates at which the banks lend to each other and are used by banks and building societies to price the fixed mortgage rates they offer their customers The Bank of England’s Monetary Policy Committee is due to meet next Thursday (22 June) MPC member Jonathan Haskel said he couldn’t rule out the possibility of two more rate rises this year as the Bank tried to combat stubbornly high inflation Fleet Mortgages and Lendco are withdrawing fixed rate deals available through brokers at 5pm today Both MPowered and Fleet will launch new rates from tomorrow (15 June) while Lendco has said it expects to return to the market “in the coming days” Skipton building society is raising the cost of its no-deposit 100% mortgage for first-time buyers but the deal remains available at current prices until Friday a 100% mortgage deal which launched last month This rate will be available until 10pm on Thursday (15 June) so borrowers need to act fast if they want to secure this deal.  Skipton says the rate will rise to 5.89% on Friday (16 June) The rate increase also means the maximum loan a first-time buyer can borrow through the deal will reduce.  This is because the Track Record loan is structured so that the monthly mortgage payments cannot be more than the average of the last six months’ rental costs the applicant has paid.  Track Record borrowers must have a minimum 12-months’ rental payment history monthly mortgage repayments cannot exceed £800 this means first-time buyers will have to borrow less Nick Mendes at broker John Charcol said: “Although the increased rate will reduce maximum borrowing for applicants the way affordability is calculated has limited how much the first-time buyer can borrow in any case This product generally suits potential buyers outside of the south east of England “While there has been interest in Skipton’s product in all cases we’ve seen borrowers haven’t taken up the deal in the end when they realise they can’t borrow enough to purchase a property of a similar standard to the one they occupy as a tenant.” Virgin Money is increasing the cost of fixed rate mortgages for new customers from 8pm this evening (13 June) New remortgage fixed rates and buy-to-let fixed rates will rise by up to 0.12 percentage points The new five-year fixed rate for remortgage at 65% loan to value will rise to 4.71% from 4.6% Product transfers – deals for existing customers looking for a new mortgage deal – will also rise by 0.12 percentage points The five-year fixed rate for product transfer will start from 4.58% (65% LTV) HSBC has returned to the mortgage broker market with increased rates on its remortgage products following its temporary withdrawal last week Among its new deals HSBC is offering a two-year fixed rate for remortgage at 4.99% (60% LTV) and a five-year fix (60% LTV) at 4.64% were priced at 4.84% and 4.34% respectively the sixth largest lender by market share according to UK Finance withdrew products for new customers available through brokers last Thursday due to a spike in swap rates – the interest rates at which the banks lend to each other Swap rates are used by lenders to price their fixed rate mortgage deals The cost of fixed rate deals for buyers has also been increased by up to 0.25 percentage points HSBC’s two-year fixed rate for home purchase (85% LTV) is now 5.19% (£999 fee) – up from 4.94% last week An HSBC spokesperson said: “The cost of funds has been increasing and TSB is reducing the cost of selected two and five-year fixed rate mortgages and some tracker loans by up to 0.4 percentage points from tomorrow (13 June) house purchase and product transfer (for existing TSB customers) deals and also on some buy-to-let mortgages Brokers say the bank is looking to grab some market share but that the lower rates are not likely to stick around for long Santander announced today that it was pulling all mortgage products for new business through intermediaries at the end of today (Monday) The lender says it will come back to market on Wednesday (14 June) Brokers expect deals to be repriced higher It comes as the Centre for Economics and Business Research has published data showing that the combined cost of increased interest rates is likely to cost borrowers in the region of £9 billion in extra mortgage payments in 2023 and 2024 technical mortgage manager at broker John Charcol said: “With lenders across the market making changes to pricing other lenders find themselves at the top of the list in terms of best rates which isn’t a favourable place to be – especially during a period in which costs of funds are increasing.  “Being the cheapest on the market means a lender can quickly become overwhelmed We are expecting more lenders to make short-term adjustments to their pricing which means a difficult time ahead for homeowners looking for a new deal and trying to decide what to do.” Clydesdale Bank – part of Virgin Money group – and Saffron building society have both withdrawn mortgage products for new customers as market jitters continue It follows the action of HSBC yesterday (8 June) which saw the lending giant pull all mortgage deals for new business with immediate effect Mortgage brokers described the market as being in a ‘state of frenzy’ Lenders are removing deals from the market at short notice and repricing fixed rates higher as swap rates – the interest rates at which banks lend to each other – have risen sharply in recent days Lenders use swap rates to price their own fixed rate mortgage deals for customers.  HSBC and Clydesdale will relaunch their fixed rate offerings next week but brokers are expecting new deals to be priced at ‘much higher rates’ Saffron building society has also withdrawn a range of its fixed rate mortgage deals today including 5% deposit deals for first-time buyers and some buy-to-let mortgages The mortgage market continues to be highly volatile with lenders pulling deals at short notice and new products being priced much higher Mortgage brokers describe a ‘frenzy’ in the market and say conditions are extremely difficult for borrowers looking for a new mortgage deal HSBC is pulling all new customer residential and buy-to-let mortgage deals at the end of today and will relaunch new products on Monday (12 June) The bank has said rates across all loan-to-value ratios will be increasing HSBC is increasing its standard variable rate (SVR) for buy-to-let customers from 7.10% to 7.35% The bank’s residential SVR is 6.99% and there are no plans to increase it Nationwide building society has increased its fixed rate across its mortgage range for new and existing customers looking for product transfer deals by up to 0.25 percentage points from tomorrow (9 June) The lender’s tracker deals are set to increase by up to 0.85 percentage points It follows the withdrawal of mortgage products and increased rates across the market over the past two weeks as lenders reacted to April’s higher than expected inflation figures.  the interest rates at which the banks lend to each other and which they use to price fixed mortgage rates for customers have spiked today and the market remains highly volatile.  Two-year swap rates have risen to 5.052% from 5.101% in the last two days The market now predicts the Bank of England will be forced to raise the Bank Rate again when it makes its next scheduled announcement on 22 June (currently it is at 4.5%) to combat stubborn inflation.  said the swap rate changes are causing havoc for lenders with a knock-on for borrowers: “Future inflation figures and the Bank of England’s monetary policy meeting later this month will be a telling sign of what to expect Any initial hopes of markets settling after the initial reaction to the inflation figures last month seem to diminish as the days go by.” mortgage expert at financial advisor Quilter said: “This fear over high inflation and rising rates has sent many banks and building societies into a bit of a frenzy It is nothing like the market reaction we saw after the mini-budget but it is not exactly what the market needs right now considering house prices are continuing to drop “Borrowers looking for a new deal may need to act more quickly Mortgage brokers often need a fair bit of information on your finances and the faster you can get this to them the quicker you can lock into a deal and ensure you don’t end up paying an even higher rate.” Specialist lender Foundation Home Loans is launching a range of new fixed rate deals for owner-occupier and buy-to-let borrowers It is offering a five-year fixed rate at 6.39% for owner-occupier borrowers who just fall outside mainstream credit criteria (Foundation categorises this as F1) The lender is also introducing a five-year fixed rate for F1 BtL borrowers at 6.39% Dudley building society has relaunched its fixed rate mortgage range at higher rates It is offering a two-year fixed rate at 7.04% (90% LTV) with a £499 fee Millions of borrowers on fixed rates could be facing ‘mortgage shock’ when they look for a new deal and many could struggle to meet repayments The research credit reference agency estimates that 7.7 million of the 10.7 million mortgages currently outstanding are on fixed rates – likely paying much lower rates than the prevailing fixed rate deals on offer in today’s market.  This is because interest rates have climbed rapidly over the past 18 months as the Bank of England has attempted to bring down soaring inflation The next Bank Rate decision is due on 22 June and pundits now believe the Bank rate will climb further Santander has increased its fixed rate deals for product transfers This is for existing customers looking to switch to a new deal All fixed rates will rise by between 0.05 percentage points and 0.33 percentage points The bank has withdrawn its 4.59%  five-year fixed rate remortgage product for buy-to-let borrowers More than 367,000 mortgage holders will come to the end of cheap five-year fixed rate deals over the next 12 months It estimates the average borrower will now pay up to £1,400 a month on their mortgage – 40% more than a year ago the Office for National Statistics says 630,000 fixed rate deals of all durations will come to an end in the remainder of 2023 Figures released today by UK Finance reveal that both mortgage arrears and repossessions rose in the first three months of this year Higher interest rates and skyrocketing day-to-day household costs have increased the stress on household budgets UK Finance’s quarterly Household Finances Review shows mortgage borrowing was significantly reduced at the start of the year with consumer confidence rocked by rising rates and inflation.  First-time buyer numbers are also at record lows with more buyers (19% of first-timers) having to resort to extra-long mortgage loans – 35 years or more – just to afford the monthly repayments chief data and analytics officer at Equifax said: “There is a risk that some consumers could become mortgage prisoners We expect to see a gradual increase in missed payments Diminishing affordability levels may also restrict or even stall growth in house prices perhaps leading to a correction in the housing market “The starting point for lenders and credit providers is to understand which of their customers are most likely to be impacted by rising mortgage rates what the extent of that rise is likely to be Mortgage brokers agree the market has been subdued and there will be a knock-on impact for the housing market said: ‘It is a concern when you see first-time buyer numbers drop as they are widely regarded as the lifeblood of the housing market and vital to its overall health with wages failing to keep pace with house prices and the deposit remaining the biggest barrier to home ownership for many this will likely spur buyers on to the housing ladder with many calling upon the Bank of Mum and Dad for assistance Softening house prices may also persuade them that now is a good time to buy if they can.” Lenders are significantly increasing the cost of mortgage borrowing as was widely expected following last month’s inflation news The headline rate of inflation fell from 10.1% to 8.7% from April to May but core inflation Virgin Money has announced an increase to its standard variable rate (SVR) the rate borrowers default to after their fixed rate deal ends unless they switch to a new fixed or tracker deal It will increase to 8.74% from 8.24% and is now one of the highest SVRs on the market The lender’s buy-to-let SVR is increased to 8.94% from 8.44% The variable rate changes are effectively immediately for new customers and from 1 July for existing customers.  which has consistently offered among the most competitive fixed rate deals in recent months also recently increased fixed rates across the board It offers a five-year fixed rate at 4.61% (for borrowers with at least 35% equity in their property) but this deal was on offer at under 4% just last month Last month’s higher-than-expected inflation figures point to further interest rate rises for 2023. The next Bank of England interest rate decision is on 22 June The market believes the Bank Rate could rise from 4.5% to 4.75% or even 5% and that this may still not be the peak for this rate cycle Any increase in the Bank Rate means even higher costs for around 630,000 borrowers who are expected to come off cheap fixed rate mortgage deals in the second half of this year according to the Office for National Statistics inflation hasn’t fallen as quickly as markets had expected that had been available up until a couple of weeks ago “While some homeowners have made the decision to fix again when it comes to remortgage others have decided to stay on a variable rate in the hope fixed rates will fall We’re seeing two-year fixed rates becoming popular again as this option gives homeowners the best of both worlds in uncertain times – the stability and shielding from further rate rises while allowing the opportunity to review and not be tied into a high rate for longer than necessary.”  And David Hollingworth at London and Country Mortgages said: “It looks like it will take a little while longer for the market to settle and borrowers will be faced with deal changes at little to no notice and replacement rates likely to be higher There are still rates available below 5% but homeowners will have to be decisive when looking at a new deal in this fast paced market.” Halifax is relaunching its fixed rate mortgages from tomorrow (7 June) It will offer a two-year fixed rate at 5.36% (60% LTV) and a five-year rate at 4.89% (60% LTV) Both deals are for home buyers and have a £999 fee The two-year and five-year fixed rates for remortgage with a £999 fee (60% LTV) are at 5.41% and 4.97% respectively has increased rates on product transfer deals (for existing customers looking for a new mortgage ) and on mortgages for additional borrowing and buy-to-let The rates are effective from tomorrow (8 June) For residential product transfer deals the rates are expected to be at least 0.25 percentage points higher while BtL rates will rise by up to 0.66 percentage points The Mortgage Lender is relaunching its residential and buy-to-let product ranges – rates are repriced higher Its five-year fixed rate for residential borrowers starts from 6.19% with a £995 fee It is offering a buy-to-let five-year fixed rate at 5.49% (two-year fixed rates start from 5.94%) – at 75% LTV has relaunched its two and five-year fixed rate deals TSB is increasing fixed rates by up to 0.75 percentage points across its range for residential shared equity and shared ownership borrowers and its buy-to-let mortgage deals Its fee-free shared ownership two-year fixed rate is now 6.44% (85% LTV) The five-year fix for remortgage BtL customers is 5.44% (75% LTV) with a £995 fee Coventry building society has come back to the market with newly-priced fixed rates across its range It is offering a two-year fix for existing customers looking for a new mortgage deal at 4.78% (75% LTV) with a £999 fee For new customers – remortgage and purchase – it is offering a five-year fixed rate at 4.76% (65% LTV) with a £999 fee is relaunching fixed rate deals for buy-to-let borrowers at 80% loan to value from tomorrow (7 June) The two-year fix is 5.74% and the five-year fix is 5.94% both deals have a 2% arrangement fee and are available for purchase and remortgage Its fixed rates for limited companies start from 6.39% One in five first-time buyers – a record number – are signing-up to 35-year mortgages to make their monthly repayments affordable The figures from banking industry body UK Finance show that 19% of all mortgage loans taken out by first-time buyers in March were for terms of more than 35 years before the Bank of England started to increase interest rates which will be published as part of its wider Household Finance Review on Wednesday this week also reveal around one third of first-time buyers (36%) are taking out mortgages for between 30 and 35 years has increased in recent years as property prices have risen But with mortgage rates climbing rapidly over the past 18 months taking out a mortgage over 35 and even 40 years has become the only way to make buying a home affordable for many buyers Increasing the term or length of a mortgage reduces the monthly repayment amount but it means borrowers pay more in interest over the life of the loan a first-time buyer taking out a £300,000 repayment mortgage over 25 years at an interest rate of 5% would pay back £226,321 in interest over the term (this is assuming the interest rate stays the same for the duration But if the same borrower took the loan over 35 years they would pay back £336,198 in interest – £100,000 more Most mainstream lenders will structure a mortgage over 35 or 40 years depending on affordability and eligibility technical mortgage manager at online broker John Charcol said: ”Since the pandemic property prices have increased beyond expectations and clients are stretching their budgets to get on the property ladder The most common approach is by extending the loan term as this brings down the monthly repayments “But first-time buyers are not the only ones extending their mortgage term We’ve seen more homeowners coming to the end of fixed-rate deals and looking to extend the loan term to make it more affordable in light of increased mortgage rates and other general increased household costs 8% opted for a mortgage term of more than 35 years in March 2023 This is double the number who did the same in December 2021 (4%) Mr Mendes adds: “Extending a mortgage term will have implications for a household’s overall finances and it’s important to understand the risks is one way to try to reduce the debt more quickly.” Lenders are continuing to pull their mortgage deals from the market while others launch new products with higher rates as uncertainty continues around what will happen to interest rates for the rest of the year has launched new two and five-year fixed rates for borrowers with up to 25% equity or deposit It had withdrawn all fixed rate products at the end of last month The new fixed rates are at least 0.2 percentage points higher Its two-year standard BtL fixed rate (75% LTV) is 5.69% with a 2% fee Five-year fixed rates (65% LTV) start from 5.69% is increasing the cost of its fixed rate mortgage deals by up to 0.4 percentage points for new and existing customers from tomorrow (6 June).  Two and five-year fixed rates with a £999 arrangement fee (80% LTV) will start from 4.62% The bank has also launched a broker-exclusive five-year fixed rate (80% LTV) with £500 cashback at 4.58% Mortgage lenders continue to withdraw deals and increase rates amid inflation uncertainty with HSBC and Clydesdale Bank now reviewing their product offerings The Bank of England may decide to increase its Bank Rate from 4.5% to 4.75% when it meets later this month (22 June) because inflation the headline rate of inflation fell less than expected food prices were 15.4% higher than the same period last year according to the British Retail Consortium (BRC) Since Bank Rate has a direct impact on mortgage lenders’ costs we’re seeing the number of available mortgage deals shrink and average loan rates increase five and 10-year fixed rates (both fee-saver and standard deals) the lender has increased its fee-saver five-year fixed rate mortgage at 60% LTV to 4.49% – up by 0.24%.  The rate increases are greater for new customers borrowers will pay up to 0.38% more than they had before today A spokesperson for HSBC said: “There are a number of factors that need to be taken into account when setting mortgage rates including swaps rates [inter-bank lending rates] and market conditions “While we have been able to bring down the cost of borrowing earlier this year on a number of occasions for new and existing customers there will be rate increases from this morning of up to 0.24 per cent for existing customers and up to 0.38 per cent for new customers.” Clydesdale Bank has withdrawn select remortgage and new customer deals at up to 75% LTV That means the lender will no longer offer its two and five-year fixed rates with a £1,499 fee at 75% LTV for existing customers or its residential two and five-year fixed rates between 65% and 75% LTV the average cost of a two-year fixed rate deal is 4.82% Average costs of a three-year deal stand at 4.63% while a typical five-year deal today is priced at 4.42% These costs compare to highs of more than 6.50% seen back in October 2022 Hundreds of mortgage deals have been pulled by lenders over the past week Borrowers have fewer residential and buy-to-let mortgages to choose from since 22 May with the number of available mortgage deals falling from 5,385 deals to 5,012 Foundation Home Loans and Tipton & Coseley Building Society have pulled their entire fixed rate ranges Furness Building Society and more have pulled selected fixes Foundation Home Loans and The Mortgage Lender have pulled their entire fixed-rate ranges.  Hodge and Marsden Building Society have each withdrawn select deals These borrowers join the likes of Nationwide and Virgin Money who announced changes to their mortgage products last week (see story below) The average rate for a two-year fixed rate residential mortgage is now 5.38% while a five-year fix has an average rate of 5.05% It’s believed lenders are reassessing their product offerings in response to uncertainty over future interest rate hikes as inflation remains high the Consumer Price Index (CPI) fell from 10.1% to 8.7% in April according to the British Retail Consortium Such figures have led to speculation that the Bank of England may be forced to hold or further increase its main rate next month – directly affecting mortgage lenders and the rates they charge to borrowers The Bank rate currently stands at 4.5% and there is speculation it could rise to 4.75% when the new figure is announced on 22 June Mortgage borrowers are being warned to brace for higher costs if they need to take out a loan or remortgage in the coming months as fixed rates look set to rise further Nationwide is increasing its mortgage rates following the spike in institutional lending rates in the past two days The building society will increase fixed rates by up to 0.45 percentage points for new borrowers and on deals for existing customers looking to transfer five and 10-year fixed rates between 60% loan to value (LTV) and 95% LTV as well as its two-year tracker products.  Nationwide’s five-year fixed rate deal for remortgage at 60% LTV has increased to 4.64% from 4.24% The two-year remortgage fixed rate (also 60% LTV) is now 4.99% The lender has also pushed up its two-year tracker deal (60% LTV) so the starting pay rate is now 5.04% Virgin Money is increasing its fixed rate mortgage deals by up to 0.12 percentage points The increase affects selected residential and buy-to-let fixed deals Product transfer mortgage deals – available to existing Virgin customers looking for a new deal will increase by up to 0.1 percentage points The lender’s five-year fixed rate for new customers (65% LTV) is now 4.12% with a £995 fee Aldermore is pulling all residential and buy-to-let mortgage products from the market It is expected it will relaunch its product range next week with higher rates Principality building society and two specialist lenders have also pulled their fixed rate mortgage ranges from the market The Mortgage Lender (TML) will be withdrawing all buy-to-let fixed rate mortgage products by 5:30pm today (26 May) Leeds building society is withdrawing selected residential fixed rates and interest-only fixed rates at 6pm today (26 May) Bank of Ireland is withdrawing selected residential deals and all buy-to-let mortgages at 6pm today (26 May) MPowered Mortgages is pulling all residential fixed rate products from the market at midnight on Monday 29 May New products and rates will be launched on Tuesday 30 May State Bank of India is withdrawing its entire buy-to-let product range as of 5pm today (26 May) while it reviews its pricing Bath building society is withdrawing its residential two-year fixed rate deals at 80% and 95% LTV and its rent-a-room two-year fix at 85% LTV (this is a mortgage deal that enables the borrower to let a room in their home and use the income towards their mortgage repayments) It is expected other lenders will follow suit in pulling their deals and launching new fixed rate products with higher rates Stubbornly high inflation means that the Bank of England is likely to push interest rates up even higher than the current level of 4.5% in an attempt to further bring down inflation Previously many mortgage lenders had thought 4.5% would be the peak of this interest rate cycle.  But when the market expects this to happen lenders tend to push up their fixed rate mortgage deals – even before an actual interest rate decision A higher Bank of England Bank Rate will also mean higher variable and tracker mortgage rates This comes after 12 successive increases to Bank Rate over the past 18 months which have led to significantly higher mortgage repayments for borrowers The next rate announcement from the Bank of England is due on 22 June said: “The fall in inflation was less than everyone expected and as a result the market is now factoring in a higher peak in Bank Rate and again this morning – and this follows several days of significant rises Over the past month swap rates have increased by more than 0.5 percentage points “We are starting to see the impact of this with lenders pulling deals from the market to reprice higher Based on current rates I doubt there will be rates available significantly below 5% Borrowers waiting to see what happens to mortgage rates should look to get their mortgage application underway.” feels the market reaction has been surprising particularly given inflation has come down He expects the volatility in swap rates will settle in the coming days: “Markets have reacted negatively on the back of expectations as to where inflation should be by now “Fixed-rate mortgage pricing had already been rising with a number of lenders repricing recently or giving a heads-up that they intend to do so “The markets’ assessment of where interest rates are heading has been consistently wrong over the past nine months Swaps can be extremely volatile and this is likely to be a knee-jerk reaction before they settle down “My advice would be to wait a few days for the markets to settle and then hopefully we will have a better picture We remain confident mortgage rates will peak soon and the reductions Nationwide building society is offering its existing mortgage customers interest-free loans to pay for green home improvements which will be classed as ‘green additional borrowing’ will be available from £5,000 up to £15,000 (available up to total mortgage borrowing of 90% loan to value of the property concerned) Any Nationwide mortgage customer can apply for the green loan The 0% loan can be taken over two or five years before it reverts to Nationwide’s standard variable rate (currently 7.74%) The money must be spent on non-structural green home improvements While Nationwide has offered competitive rates on borrowing for green home improvements before this is the first time it has made interest-free loans available The mutual says it has launched the offer to test whether lowering the cost of the loan will encourage homeowners to make their properties more energy efficient A recent survey by Citizens Advice found that 90% of households feel the high cost of ‘green’ home improvements is the main barrier to carrying out the work Fewer than one in five said they were willing to borrow more on their mortgage or through an unsecured loan to do the work.  The charity has warned that homes will each need an energy-efficiency upgrade costing £15,000 if the UK is to achieve net zero carbon emission status by 2050.  Saffron building society and Skipton building society offer various incentives and cashback to borrowers carrying out ‘green’ home upgrades or retrofitting energy efficient measures But no providers are yet offering 0% loans in the same way as Nationwide Skipton building society has today (15 May) increased the cost of its fixed rates for ‘green’ additional borrowing It offers loans between £5,000 and £50,000 for existing residential mortgage customers with rates at 4.99% over two years (up from 4.90%) or 4.53% over five years (4.16%) Nick Mendes at broker John Charcol said: “With the government net zero pledge and greater focus on lenders’ role in educating promoting and helping customers invest in their homes to become more sustainable “Affordability will always remain a barrier for many households especially when you consider it can take years for the investment to pay for itself through the cost savings.” David Hollingworth at broker London & Country said: “By cutting this rate to 0% Nationwide will grab the attention of any homeowner planning to make energy-efficiency improvements.  “We need more lenders to be making funding options available to help homeowners implement green changes which usually require a substantial initial outlay for longer-term benefits.” Santander and Coventry and Skipton building societies have each committed to not raising the cost of their standard variable rate (SVR) mortgages despite yesterday’s quarter percentage point increase to the Bank of England Bank Rate Lenders usually put up their SVRs in response to any Bank Rate rise. HSBC’s SVR will remain at 6.99% Coventry building society at 6.99% and Skipton building society at 6% Skipton has previously announced that it will increase its SVR to 6.25% from 1 June in response to the increase in the Bank Rate in March to 4.25% The lenders concerned say their tracker mortgage rates – which are formulated to match movements in the Bank Rate – will increase as usual.  Similar letters were sent to bosses at Nationwide the average standard variable rate is currently 7.26% Lenders are pushing up fixed mortgage rates as the market digests another increase in the Bank of England’s Bank Rate Some lenders acted in advance of the decision to raise the rate by a quarter percentage point from 4.25% As indicated on 12 April (see dated story below) Skipton building society has launched a 100% mortgage product aimed at renters Unlike other deals designed for this market there will be no requirement for borrowers to provide guarantors for their repayments such as friends or family – referred to by the lender as the ‘Bank of Mum & Dad’ the no-deposit five-year fixed-rate loan will be available to “tenants who can evidence affordability for a mortgage and have a strong track record of rental payments.” Borrowers must be first-time buyers aged 21 or over Skipton says it expects high demand for the product and says it may sell out quickly is higher than mainstream five-year fixed deals reflecting the higher risk of default carried by the lender the average rate for five-year fixed rates is 4.30% In addition to passing affordability and credit reference checks would-be borrowers will need to show evidence of a minimum 12-month good track record rental history Skipton will also calculate to ensure monthly mortgage payments are not greater than the average of their last six months’ rental costs.  a tenant paying an average of £800 per month over the last six months will have a maximum monthly mortgage payment of £800 The number of privately-rented households in England has more than doubled since 2000 to stand at 4.6 million Skipton says over 80% of tenants feel ‘trapped’ in the rental cycle paying rents that are higher than a mortgage which prevents them from saving a deposit to buy a property First-time buyers are paying £200 more a month on their mortgage compared to a year ago to get on the property ladder The firm says rising interest rates mean borrowers with a 15% cash deposit are paying £1,056 a month on their mortgages The calculation is based on an average five-year fixed rate of 4.44% (on a 25-year repayment mortgage) for an average first-time buyer mortgage of £191,219 It assumes a purchase price of £224,963 – Rightmove’s highest recorded average asking price for first-time buyer properties average five-year fixed rates at 85% loan to value (LTV) were 2.76% today’s five-year fixed rate mortgages have fallen from their peak in autumn 2022 The average five-year fixed rate at 85% LTV was 5.89% last October is withdrawing its two- and five-year fixed rate deals for residential customers at the end of today (5 May) Brokers expect the lender will relaunch fixed rate deals with higher rates next week Despite the significant rise in borrowing costs for all homebuyers with demand for a first home 11% higher than typical pre-Covid levels.  The property portal says the stabilisation of mortgage rates and a ‘frenetic’ rental market are pushing more first-time buyers to the market said: “The combination of a new record price and higher mortgage rates than last year means it is a challenge for first-time buyers.  “Our data indicates that first-time buyers who are able to raise their deposit are still finding buying compelling with the number of people looking to move in this sector currently higher than the last more normal market of 2019.  would-be buyers planning a move may need to assess their individual circumstances and weigh up their affordability based on current rates with the potential cost of waiting or paying rent for longer.” TSB and Foundation Home Loans are among lenders tweaking the cost of their mortgage rates as volatility creeps into the markets and providers look to manage their lending commitments The Bank of England will announce its decision on the Bank Rate which hugely influences mortgage and other interest rates There had been hopes that the rate might be held at 4.25% but now expectation is growing that it will rise to 4.5% Lenders are pushing up the cost of fixed-rate mortgages as financial markets become jittery in the run-up to the Bank of England interest rate decision on 11 May Swap rates – the rates at which the banks lend to each other – have been nudging upwards in expectation of a rise in the Bank Rate Swaps are used by mortgage lenders to price their fixed-rate deals for borrowers Nick Mendes at broker John Charcol said: “The markets had already priced in an 0.25% increase to the Bank Rate for Thursday next week But despite this there is volatility in the markets.  “Two-year swap rates are up to 4.471% – up from 4.454% late last week although long-term swap rates have fallen slightly The expectation of a price war among mortgage lenders appears to have faded Among the lenders increasing mortgage rates are: More lenders have nudged down the cost of their fixed rate mortgage deals to attract new business despite experts predicting a further increase to the Bank of England Bank Rate next month The Bank Rate announcement will be on 11 May with some commentators expecting a rise to 4.5% Nationwide building society is increasing its fixed rates across select mortgage products for new customers by up to 0.45 percentage points The move by the mutual lender bucks the trend of recent cuts to fixed rate mortgage deals by a swathe of mainstream lenders and specialists in recent weeks three and five-year fixed rates up to 90% LTV for new customers moving home and remortgaging It is offering a two-year fixed rate for home movers with a £999 fee (60% LTV) at 4.64% – up from 4.39% The equivalent deal over three-years is now 4.44% – up from 4.29% The five-year fixed rate with a £999 fee (60% LTV) has gone up from 3.99% to 4.19% The two-year fee-free fixed rate is now 5.24% (up to 90% LTV) The two-year fee-free fix at 95% LTV is unchanged at 5.64% Nationwide has also increased its two-year tracker mortgage deal by 0.1 percentage point (up to 75% LTV) to 4.59%.  A Nationwide spokesperson said: “We have made a number of rate reductions since the start of this year the current financial market environment continues to see swap rates fluctuate and “As a member-owned organisation we are not immune to this and we need to ensure our new business mortgage rates are sustainable which is why we are increasing rates on selected products even with these changes Nationwide remains well-positioned in the market to support borrowers of all types.”  Swap rates are the interest rates charged by banks and financial institutions when they lend to each other and their level determines the rates charged to mortgage borrowers Lenders from across the market continue to chip away at their fixed rate mortgage deals in an attempt to entice new business and grab market share The best five-year fixed rate deals remain below 3.9% in welcome news for borrowers The Bank of England Bank Rate is 4.25% although experts predict it could rise to 4.5% when the next adjustment is made on 11 May See stories below for other recent rate changes Family building society is cutting fixed mortgage rates by up to 0.3 percentage points across owner-occupier The mutual is offering a five-year fixed rate for residential customers at 4.99% (60% LTV) with a £999 fee but it has withdrawn all two-year fixes The five-year fix for buy-to-let landlords starts from 5.84% (60% LTV) with a £999 fee is cutting its tracker product rates by up to 0.4 percentage points It is offering a lifetime tracker deal at Bank of England Bank Rate plus 1.69% giving a starting pay rate of 5.94% (65% LTV) The same deal for landlords of houses of multiple occupancy (HMO) is now at Bank Rate plus 1.89% Both tracker deals have a 3% fee and a £200 application fee Specialist lender LendInvest is cutting residential mortgage rates across its range for the self-employed and those with non-standard income and credit histories Five-year fixed rates for purchase and remortgage start at 5.29% with a £1,195 fee (65% LTV) also for purchase or remortgage with LendInvest This rate is for properties with an energy performance certificate rating of A to C Santander is cutting fixed rates for residential remortgage borrowers by up to 0.17 percentage points Its fee-free five-year fixed rate is now 4.03% Fee-free two-year fixed rates start from 4.49% (both deals are at 60% LTV) Residential lifetime tracker rate deals are being reduced by up to 0.3 percentage points Buy-to-let fixed rates are also being cut by up to 0.2 percentage points There is a five-year fix for purchase and remortgage at 4.37% (60% LTV) with a £1,479 fee TSB is cutting rates across its product transfer and additional borrowing mortgages by as much as 0.65 percentage points It is offering a five-year fix for product transfer (for existing customers looking for a new deal) at 3.89% (60% LTV) with a £995 fee It also has a 10-year fix at 3.99% (60% LTV) with no fee Two-year fixed rates start from 4.09% (60% LVT) with a £995 fee is cutting fixed rates by up to 0.55 percentage points It has a two-year fixed rate at 4.2% (60% LTV) five-year rates from 3.9% and 10-year rates start at 4.05% is launching a range of residential mortgage deals with rates as much as 0.94 percentage points lower than its existing deals Its Platinum range has a two-year fix at 5.59% and a five-year fix at 5.45% Maximum loan to value is 70% and arrangement fees range from £995 to £2,995 three and five-year mortgage fixed rates by up to 0.25 percentage points It has also introduced a £300 cashback incentive to new customers who remortgage to a fixed rate with the bank Among its new rates HSBC is offering a five-year fix for remortgage customers at 3.84% (60% LTV) with a £999 fee a three-year fix (80% LTV) at 4.19% with a £999 fee and a three-year fix for home movers at 4.19% (60% LTV) Nationwide building society is cutting its fixed mortgage rates by up to 0.3 percentage points for new and existing borrowers with low amounts of equity or a small deposit Included among the reductions from Nationwide are a five-year fixed-rate mortgage at 4.44% (90% LTV) and a two-year fix at 5.29% (95% LTV) that both incur a £999 fee have been cut by up to 0.2 percentage points There is a two-year fix at 4.89% (90% LTV) or a three-year fix at 5.24% (95% LTV) First-time buyer deals come with £500 cashback on completion aimed at existing Nationwide customers looking for a new mortgage rate are being cut by up to 0.3 percentage points These include a five-year fixed rate at 3.89% (60% LTV) with a £999 fee and a 10-year fix at 4.29% (60% LTV) with no fee is cutting rates across its range by up to 0.5 percentage points Its five-year buy-to-let fix is now 3.99% with a 3% fee (65% LTV) The five-year fixed rate for limited company landlord deals is 4.94% with a 3% fee (75% LTV) and the five-year fix for mortgages on houses of multiple occupancy (HMO) is 4.84% where a borrower rents out their first home remortgaging to fund the purchase of a second property The five-year fixed rate let-to-buy deal is now at 4.59% (75% LTV) with a 3% fee Virgin Money is cutting its broker-only fixed mortgage rates and offering a five-year fix at 3.79% (65% LTV) – down from 3.9% This is the lowest rate five-year fix on the market Other fixed rates have been cut by up to 0.23 percentage points The lender’s five-year fix with a lower £995 fee is now at 3.82% (65% LTV) and the same deal at 75% LTV is now 3.99% as well as fixed rates at higher LTVs for residential borrowers The fee-free five-year fix (95% LTV) is now 4.97% Coventry building society is cutting rates on selected residential and buy-to-let mortgages available through brokers Its first-time buyer deals at 90% and 95% loan to value (LTV) have been trimmed down and it is offering a five-year fixed rate at 4.71% (90% LTV) with no fee and a two-year fix at 5.61% (95% LTV) with no fee and £500 cashback on completion The lender has cut some rates on product transfer deals for existing customers It is offering a five-year fix at 4.22% (85% LTV) with a £999 fee There is a five-year fixed rate for purchase and remortgage at 4.4% (65% LTV) with a £1,999 fee is cutting rates for residential and buy-to-let (BtL) borrowers by up to 0.35 percentage points and 0.1 percentage points respectively For residential customers the lender is offering a two-year fix at 6.39% (90% LTV) with a £999 fee The fee-free two-year deal (also 90% LTV) is at 6.64% The fee-free five-year fix at 90% LTV is now 6.49% it is offering a five-year fixed rate (75% LTV) for landlords with single residential investment properties at 5.44% For properties with an EPC (energy performance certificate) rating of A to C Keystone Property Finance is cutting rates on its five-year fixes in its classic range by up to 0.3 percentage points Among the deals is a five-year fix at 4.94% (75% LTV) with a 4.5% arrangement fee is cutting fixed rates on buy-to-let loans by up to 0.75 percentage points It is offering a five-year fix at 5.39% (75% LTV) with a £4,995 fee Foundation is also cutting owner-occupier deals by up to 0.6 percentage points which aim to help those with less than perfect credit scores start at 5.89% for a two-year fix at 65% LTV with a £995 fee Skipton building society is working on a mortgage product aimed at helping long-term renters onto the property ladder The mortgage will help tenants currently stuck in a negative cycle of being unable to save up a deposit to buy a first home due to high – and rising – rental costs Rental costs increased by 4.8% in the year to February 2023 in the UK (excluding London) Private rental prices in London increased by 4.6% in the same period – this is the strongest annual percentage change in the capital since 2013 Full details of the Skipton mortgage for renters — and the launch date – have yet to be released but it is expected the product will take into account long-term rental payments as part of the overall mortgage affordability assessment.  The deal is also likely to require a lower level of cash deposit.  chief executive of Skipton Group said: “There are too many people who are trapped in rental cycles.  “These include people who have a decent history of making rental payments over a period of time and can evidence affordability of a mortgage yet their only barrier to becoming a homeowner is not being able to save enough for a deposit and through lack of access to the bank of Mum and Dad “We know there isn’t one quick solution to addressing this huge societal challenge of tenants being trapped in renting cycles with rents escalating faster than mortgage payments and the increasing costs of living but doing nothing isn’t going to solve this issue So we’re ensuring all these considerations and more are going into the development of our new product.  “We’re carefully looking at how we can best tackle the challenges that ‘generation rent’ is facing together with managing the potential risks and challenges they may face in the future too.  “We know this product will not be able to help everyone and is only part of the solution for this group of people we’re taking a stand to offer innovation in this space to help more people become first time buyers.” At the same time Skipton has increased fixed mortgage rates across its residential and buy-to-let ranges It is offering a two-year fixed rate for purchase and remortgage at 4.81% (60% LTV) with a £995 fee The five-year BtL fixed rate (60% LTV) is at 4.72% with a £1,995 fee The average standard variable rate (SVR) of mortgage interest has passed the 7% mark for the first time in 15 years piling on the pain for beleaguered borrowers with variable rate deals lenders are cutting their fixed rates of interest with HSBC group the latest to announce a reduction (see below) SVR mortgage rates fluctuate according to movements in the prevailing rate of interest with recent increases attributed to the rise in the Bank Rate (from 4% to 4.25%) last month because lenders can set their SVR at their preferred level changes are not always exactly in line with changes to Bank Rate The average SVR was recorded at 7.15% at the end of March according to data from online broker Better The last time SVRs were this high was in 2008.  Mortgage borrowers automatically move onto their lender’s SVR when they come to the end of a fixed rate unless they remortgage to a new deal.  The current average SVR of 7.15% compares to an average of 3.88% in December 2021 before the Bank of England Bank Rate started to climb There have been 11 consecutive rate rises since then A borrower with a £150,000 repayment mortgage over 25 years would pay £1,075 a month on an SVR of 7.15% This compares to £711 for the same borrower on a fixed rate of 3% said: “With many customers trying to work out whether to commit to a deal or see what happens to the market we are seeing more customers moving onto their lender’s SVR Customers should speak to an adviser to establish what their plans are and if there are cheaper options than going onto an SVR.” Mr Amidi suggests a tracker deal with no early repayment charges could be a good option as it provides flexibility With a penalty-free tracker borrowers can benefit if interest rates fall but if rates stay high or rise they are free to switch to a different deal at any time.  Nick Mendes at broker John Charcol said: “The unpredictability of interest rate movements makes it hard for borrowers to plan their finances But mortgage costs will jump significantly if you don’t switch to a new deal even if you’re only on SVR for a month or two because SVR rates themselves tend to be significantly higher than the best fixed rate deals “Now more than ever borrowers should invest the time in finding a new deal ahead of their old rate coming to an end Homeowners keen to avoid paying SVR and pay less for their mortgage can look for a new home loan deal well in advance of their existing fixed or tracker deal coming to an end Deals can be reserved up to six months in advance.  Lenders continue to chip away at their fixed rates in an attempt to entice new business Yorkshire building society has unveiled a market-leading five-year fixed-rate mortgage at just 3.83% and slashed rates by up to 0.5 percentage points across its range of loans David Hollingworth at broker London & Country Mortgages says Yorkshire is making a bold statement with its sub-4% deal and is pushing for a bigger slice of a contracting mortgage market: “It is positive news for borrowers with rates sharpening again after their recent bounce upwards.” Yorkshire’s five-year fix at 3.83% is for remortgage borrowers with at least 25% equity in their home (75% loan to value ratio) The new rate is down from its previous 4.25%.  The deal carries a relatively steep £1,495 fee but the rate undercuts the five-year fix at 3.91% launched by Virgin Money yesterday (30 March) Yorkshire is also offering a five-year fix at 3.92% for home purchase customers (also at 75% LTV and with a £1,495 fee) and a fee-free two-year fix (85% LTV) at 5.12% Mr Hollingworth added: “This looks to be the level where fixed rates are settling now There’s clearly hot competition in the market between lenders which is helping to maintain and improve the rates on offer.” See the latest information on house prices from Nationwide building society Lenders are continuing to chip away at their fixed rate mortgage deals as competition for new business remains fierce said: “Due to changes in market conditions driving falling swap rates we’re reacting quickly and taking the opportunity to review our product range to offer brokers and their clients better value.” Lenders are continuing to trim mortgage rates despite last week’s increase to the Bank of England Bank Rate last Thursday Despite the Bank Rate rise the market has reacted positively and swap rates – the wholesale rates at which banks lend to each other and on which fixed mortgage rates are based – have dropped to their lowest since February.  Nick Mendes at broker John Charcol said this is evidence the market expects rates to fall in the medium to long term: “Lenders had priced in this latest rate rise so there won’t be many changes to fixed rate products for now.  and swaps at healthy levels we could see lenders competing for business with lower rates Lenders are continuing to push down their fixed rates as competition for new business remains fierce A broad range of lenders have reduced rates across their home loan ranges This is despite the Bank of England raising the Bank Rate from 4% to 4.25% this week chief commercial officer at Fleet Mortgages said:  “Due to a combination of factors including a softening of swap rates and further movement within the sector we’ve been able to reduce our fixed-rate pricing across the board by 0.2 percentage points.  and in particular the Office for Budget Responsibility’s inflation and interest rate forecasts appear to have added a further layer of calm to market sentiment with the belief that rates will now peak at a lower level than previously feared It means we’ve been able to review our pricing and cut it accordingly.” First Direct is cutting its fixed rate mortgages by up to 0.3 percentage points following a rush of lenders who have trimmed their fixed rates down in recent days (see stories below) Many lenders are now pricing in a Bank rate ‘hold’ at 4% by the Bank of England when it announces its latest interest rate decision on Thursday (23 March) The majority of First Direct’s rate cuts are for high loan to value (LTV) deals helping borrowers with a smaller cash deposit or less equity in their property All First Direct mortgages are either fee-free or come with a maximum fee of £490 said: “We have reduced the rate of borrowing across some of our higher loan-to-value products which is great news for first-time buyers who might be looking to buy a property with a smaller deposit “We understand the challenges faced by first-time buyers and we want to support people who are looking to take their first steps onto the housing ladder We offer a range of products that provide added flexibility through features such as a 40-year term and unlimited overpayments.” three and five-year fixed deals for remortgages by up to 0.39 percentage points Santander and Virgin Money have also cut rates The moves come ahead of the Bank of England Bank rate announcement on Thursday this week There is growing speculation that the Bank might hold the rate at 4% which would reduce the likelihood of recent mortgage rate falls being reversed Mortgage brokers have welcomed the government’s extended free childcare scheme claiming it will boost affordability for thousands of families and help many get a foothold on the property ladder they say it’s unfortunate that the changes won’t begin to take effect for at least a year The policy, announced by Chancellor Jeremy Hunt in his Budget speech yesterday will see an extension to the 30-hours-a-week free childcare scheme currently on offer to working families with three and four year-olds.  the 30-hours’ free childcare will be made available to eligible families with children aged nine months and over which can run into thousands of pounds a year have a significant impact on mortgage affordability. Mark Harris at mortgage broker SPF Private Clients said mortgage applicants with children often find they can borrow less than they envisaged once these costs have been factored into lenders’ affordability calculations.  A full time nursery place costs an average of £264 a week (£322 a week in London) according to a Family and Childcare Trust survey – and that is the cost for just one child.  David Hollingworth at mortgage broker London & Country said: “One of the biggest outgoings for borrowers is childcare So the extension of free childcare will provide welcome relief for parents.  “That relief could be underlined when it comes to applying for a mortgage as any reduction in a big outgoing will help improve the range of mortgage options The easier it is to meet lender criteria the easier it will be to shop around which will help borrowers get the best overall value.”   the implementation of the new policy will not begin until April 2024 – and won’t apply to all under 5s until September 2025 Mr Harris added: “As with any policy implementation it will take a while to come into force so parents should not expect any immediate relief or improvements to their borrowing potential.” mortgage lenders have continued to adjust rates in the wake of yesterday’s Budget.  The collapse of Silicon Valley Bank last week could bring welcome relief for UK mortgage borrowers.  There was a surprise run on SVB last week as its account holders were spooked by reports the bank was sitting on huge losses on its government bond-holdings In addition to triggering a sell-off of banking stocks in world markets SVB’s failure led to speculation that central banks including the Bank of England and the US Federal Reserve might slow down or even stop increasing interest rates markets were pricing in a 0.25 percentage point increase to the Bank of England Bank Rate next week from its current level of 4% This is good news for borrowers on variable and tracker mortgage rates who were bracing for higher monthly repayments It could also spell better news for borrowers looking to remortgage to a new fixed-rate deal.  Swap rates – the wholesale interest rates at which the banks lend to each other – have fallen sharply following the news from the US As fixed mortgage rates are largely determined by swap rates this means fixed mortgage rates are less likely to rise in the short term said: “Two year swaps on 10 March were priced at 4.28% and five-year swaps were at 3.87% Currently they’ve fallen to 4.14% (two-year) and 3.70% (five-year).  “With rates in a state of flux we’re likely to see mortgage rates fluctuating No one can accurately predict where rates will be in the future and there are still many factors that can change in a short period of time “But for those coming into their last six months of a fixed rate mortgage deal expiring locking in a competitive rate deal now will mean you can hedge your bets If rates increase you’ve tied into a lower rate deal and if rates fall between now and when your current deal expires you still have the option to move to a new rate at that point.” said: “The market senses that some of the heat has come out of potential interest rate rises The fall in swap rates in the past two days could start to filter through to fixed-rate mortgage pricing “We were expecting two more base rate rises but that now looks like one particularly those requiring high loan-to-value mortgages who pay comparatively higher rates.” Lenders continue to tinker with rates as the market looks ahead to the next Bank of England interest rate decision on 23 March will climb further and could reach 4.5% in 2023 before falling back again has told lenders to offer more support to hard-pressed borrowers facing an increase in their repayments (see story below) Sam Amidi at online mortgage broker Better.co.uk said: “Halifax is one of the biggest lenders in the country and it is now flexing to closer to the best-buy deals as it has been sitting outside the top three With other key lenders increasing rates in recent days Halifax will see this as an opportunity to boost market share.  it will be interesting to see what support the government plans on offering the property market as this has been stagnated for the past five months With the UK narrowly avoiding recession and talks that Bank rate could be held at the next MPC meeting this could be a chance to reignite the market and build consumer confidence.” The Financial Conduct Authority is telling lenders to do more to help customers struggling with mortgage repayments due to rising interest rates and the increased cost of living The regulator estimates that an additional 356,000 mortgage borrowers could face payment problems by the end of June 2024 This is on top of 200,000 households the FCA says are already in financial difficulty This is a reduced estimate compared to September 2022 when the FCA feared around 570,000 more borrowers would face financial difficulty as a result of increases to the Bank of England Bank rate the regulator expected the Bank rate to peak at 5.5% Payment problems are likely to arise when borrowers come off current low fixed rate mortgages and either must pay their lender’s much higher standard variable rate (known as SVR or remortgage to a higher fixed rate deal.  The regulator has calculated that on average mortgage borrowers coming off fixed rate deals over the next year could end up paying an additional £340 a month on their mortgage The Bank rate currently stands at 4% after spiralling upwards from 0.1% in 2021 The next interest rate decision will be on 23 March when an increase to 4.25% or 4.50% is possible as the Bank tries to quell the rate of inflation In its final guidance on how lenders should help mortgage borrowers the regulator says it expects firms to support customers who ask for help by offering a range of measures to relieve payment pressure.  It follows a mortgage summit between the Chancellor Jeremy Hunt the FCA and representatives from the mortgage industry in December The FCA says options to help struggling customers include: Mortgage borrowers with concerns are urged to contact their lender as soon as possible to discuss their options Borrowers should be aware that making changes to their mortgage could result in higher payments in future and that they pay back more overall executive director of consumers and competition at the FCA said: “Our research shows most people are keeping up with mortgage repayments Your lender has a range of tools available to help.  “Get in touch as soon as you have concerns don’t wait until you’re about to miss a payment before doing so Just talking to them about your options won’t affect your credit rating.”   FCA research has found borrowers aged 18-34 are more likely to be financially stretched than the rest of the working age population as well as those living in London and the South East It also found almost half of those in difficulty (47%) wrongly believe contacting their lender for support would damage their credit rating If a borrower agrees an option with their lender to pay less than the agreed amount in their contract this will be reflected on their credit file But just talking to their lender won’t affect their credit file or rating and nor will some other forms of support head of personal finance at investment firm AJ Bell said: “There is no hiding from the fact that the mortgage market is a terrifying place for the 1.4 million homeowners coming off a cheap fixed-rate deal and moving onto far higher rates this year as well as other free services including Citizens Advice Fixed mortgage rates continue to be volatile in response to fluctuating wholesale lending markets which heavily influence the price of mortgages Swap rates – the interest rates at which banks lend to each other – have increased over the past week causing lenders to reassess the mortgage rates they offer to customers.  Economists are also questioning how much further the Bank of England Bank Rate (currently at 4%) has to climb The next interest rate decision is due on 23 March Skipton building society has increased fixed rates on selected residential purchase and remortgage deals by up to 0.38 percentage points while cutting rates by up to 0.19 percentage points for new-build homes and government scheme mortgages Skipton has pushed up the cost of its two-year fixed rate (60% LTV) deal by 0.38 percentage points to 4.75% Its fee-free two-year fixed rate (90% LTV) also rises to 5.29% – an increase of 0.13 percentage points.  But the lender’s fee-free two-year fixed rate for new-build properties is reduced by 0.07 percentage points to 5.73% (available up to 90% LTV) The two-year fixed rate for shared ownership mortgages is now 5.47% – a reduction of 0.18 percentage points This deal is available up to 90% LTV and has no fee Virgin Money is cutting its fixed rate mortgage range for existing customers by up to 0.26 percentage points are available to existing mortgage customers looking to switch to a new deal The five-year fixed rate (65% LTV) is among the market leading deals at 3.99% – a cut of 0.16 percentage points The two-year fixed rate (65% LTV) is now 4.37% – a cut of 0.16 percentage points The fee-free two-year fixed rate is cut by 0.26 percentage points to 4.6%.  three and five-year fixed rates for existing borrowers with a higher loan to value ratio have also been cut by up to 0.21 percentage points head of intermediary sales at Virgin Money said: “We don’t believe our best rates should be saved just for new customers.  “With five year fixed rates starting from 3.99% these changes to our existing customer range improve the options available for those looking for a new rate on their existing loan.” Nationwide building society has increased rates by up to 0.21 percentage points across selected fixed and tracker mortgage products for new and existing customers The lender is likely to be responding to the recent increase in wholesale swap rates – the interest rates at which the banks lend to each other which determines how lenders price their fixed rate mortgages Virgin Money and HSBC have each increased rates in recent days (see stories below) This bucks the trend of falling mortgage rates across the market since the start of the year.  Nationwide is offering a two-year fix at 4.79% (75% LTV) for first time buyers with a £999 fee The two-year fix for new customer homebuyers (80% LTV) is at 4.79% with a £999 fee Its new customer remortgage five-year fix (60% LTV) is now 4.19% – up 0.2 percentage points Existing Nationwide borrowers will see increased rates on home mover switcher and switcher additional borrowing products The switcher five-year fix for existing customers (60% LTV) is priced at 4.04% (an increase of 0.1 percentage points) with a £999 fee ‘Switchers’ is how Nationwide refers to existing customers remortgaging to a new deal said: “Swaps rates have seen an increase over the last few days partially down to the change in mood seen in the US.  “The Federal Reserve is now expected to keep interest rates higher for longer and the expectation here in the UK is that the Bank of England will look to do the same The market believes UK rates could rise to 4.25% and may not fall again until 2024 Anyone hoping to see a continuing fall in mortgage rates – including the current sub 4% deals – could now have to wait a little longer.” we have continued to lower rates across our mortgage range including doing so four times this year.  we are having to make some small increases on selected mortgage rates so that we can continue to balance our support for all types of borrowers with the need to ensure our rates remain sustainable.” Skipton building society is the latest lender to reduce the cost of its fixed-rate mortgages – its fourth rate cut this month But HSBC is set to increase fixed rates across its range from tomorrow and experts suggest fixed rates across the market may soon start climbing again.  Skipton is cutting rates for residential and buy-to-let customers by up to 0.24 percentage points It is offering a fee-free two-year fixed rate for residential borrowers at 5.16% (90% LTV) borrowers can get a five-year fix at 4.16% with a £995 fee Despite some lenders continuing to nudge down their fixed rate offerings as competition in the market remains hot brokers say fixed-rate reductions are likely to soon go into reverse Wholesale ‘swap’ rates – the interest rates at which banks lend to each other – have started to creep up This will inevitably feed through to the rates lenders charge their mortgage customers.   swap rates are at the highest they have been so far this year with the lowest two-year fixed mortgage rate deals increasing from 4.02% to 4.12% And although the lowest five-year fixes are still below 4% some providers have tweaked their deals upwards in recent days or removed their best buys to control business levels (see stories below) From tomorrow (1 March) HSBC will increase its standard variable rate (SVR) from 6.79% to 6.99% and the SVR for buy-to-let customers will also rise from 6.35% to 6.85%.  switcher products and remortgage deals will all be increased at the same time Brokers say they are hopeful HSBC’s five-year fix at 3.99% (60% LTV) will be retained Experts also predict the Bank of England could increase Bank Rate again when the monetary policy committee (MPC) next meets on 23 March founder of mortgage broker Rose Capital Partners believes mortgage rates have hit the bottom for this cycle: “We may now be seeing the end of falling mortgage rates We don’t have a crystal ball so this is what I’m suggesting from my reading of the money markets But unless something changes geopolitically or economically I feel that even if Bank Rate settles at 4% then a five-year fixed rate mortgage at around 4% looks like exceptional value “There have been some interesting movements in the money markets over the past week fuelled by the sentiment that interest rates haven’t yet reached their peak in this cycle.  This is going to have an impact on the pricing of fixed rate mortgages In the long run I think we’ll see the best five-year fixed rates settle at around 4% to 4.5%.” said: ‘‘All eyes are focused not only on the MPC’s decision next month Hawks and doves are already vocalising their thoughts Once the market feels the tide has turned and Bank Rate has peaked “While not every lender is wholly reliant on the money markets and swap rates for its lending capacity Even those lenders with deep pockets will observe movements and what the competition is doing in order to preserve service levels ‘Borrowers can’t assume fixed rates will continue to edge lower As we have seen in the past week the best deal can disappear as quickly as it appears.” More lenders have slashed fixed rate mortgage pricing as competition remains strong These latest cuts come in the wake of price increases last week by some lenders who were offering the most keenly priced five-year fixed rates at under 4%.  were offering five-year fixed rates at 3.95% and 3.75% respectively – the cheapest on the market But Platform has since withdrawn its deal and Virgin increased its rate to 3.99%.  The next Bank of England decision on Bank Rate –  currently at 4% – will be on 23 March the broker arm of Coventry building society is cutting selected residential rates by up to 23 percentage points It has also launched 50% LTV products for new and existing customers Fixed rate products for existing buy-to-let customers have also been reduced by up to 70 percentage points The building society now has a five-year fixed rate offer that joins the growing list of sub-4% deals (see stories below) with a 3.96% rate which is available for residential purchase and remortgage purposes offers a choice of £350 cashback or a remortgage transfer service Its two-year fixed rate deal at 4.62% with an LTV of 85% and a £999 fee available for residential purchase and remortgage purposes Online searches for mortgage rates soared by more than 500% in the year to November 2022 with borrowers seeking information and reassurance as interest rates climbed The findings, from broker Better.co.uk show Google searches for ‘mortgage rates’ averaged around 110,000 per month during the 12-month period and increased by more than 230% in the three months to November 2022.  The number of searches around house prices also increased dramatically Better’s research also highlights the impact of the cost of living crisis with Google searches for information on energy bills rising by 819% over the year The research comes as lenders across the market continue to tweak fixed rates: HSBC and Skipton building society have each cut their fixed mortgage rates in the latest salvo from an increasingly competitive market Virgin Money has launched a range of fixed rate mortgage deals for first-time buyers and those moving home But though the new products include cashback incentives and free valuations the rates represent an increase of up to 0.26 percentage points on Virgin’s previous fixed rate deals It comes the day after the lender raised rates for residential remortgage customers by up to 0.25 percentage points (see stories below) Virgin has also cut buy-to-let fixed rates by up to 1.5 percentage points Virgin’s two-year fixed rate for residential purchase customers at 75% LTV is 4.78% – 0.15 percentage points higher than the old product but the deal offers £1,000 cashback and a free valuation.  the two-year fixed rate is 5.25% – 0.26 percentage points higher.  Rates are lower for borrowers who choose to pay a higher upfront fee with Virgin offering a two-year fixed rate at 4.49% (75% LTV) or 4.9% (90% LTV) said: “Our new range of short term exclusive rates offers even more options for those looking to purchase a new home whether a home-mover or a first time buyer.  “We remain supportive of those with smaller deposits with 90% LTV two-year fixed rates starting from 4.90%.”For buy-to-let borrowers Virgin is offering a five-year fixed rate remortgage deal at 4.64% (50% LTV) with a £3,995 fee for ‘portfolio’ landlords (those who own and let out multiple properties) Mortgage experts say sub-4% fixed rate deals aren’t about to disappear despite the recent spike for lenders in the cost of providing fixed rates to customers Wholesale ‘swap’ rates – the interest rates at which banks lend to each other – have been moving a lot in recent days This is the rate at which mortgage lenders must borrow the money to then lend out to their mortgage customers.  so too do the mortgage rates homeowners pay The recent rise in swap rates is one of the reasons behind Virgin Money’s increase to fixed remortgage rates yesterday (see story below) But despite the move – which bucks the trend of the past month which has seen fixed mortgage rates fall across the market – brokers are confident that intense competition will keep mortgage prices low Virgin has kept its five-year fixed rate at under 4% all have five-year and 10-year fixed rate deals priced below the Bank of England Bank Rate (4%) launched a market-leading five-year fix at 3.75% although this is only available at 60% LTV with a steep £1,999 fee and it is for a minimum mortgage size of £400,000.  Broker-only lender Platform is offering other five-year fixed rate options from 3.85% (60% LTV) with a £1,499 fee or at 3.89% with a £999 fee Tessa Skot, chief operating officer at online broker Better.co.uk said: ‘There’s no cause for panic – not all lenders are looking to make similar adjustments to Virgin Money “Virgin is likely being more conservative than other lenders in reaction to swap rate movement and is also looking to maintain prompt service levels in response to increased customer demand.  when a lender has received a high volume of applications they temporarily increase rates for new applications to help maintain the service levels customers expect on the applications they have already received When these applications have been processed a lender often then lowers interest rates again.  has this advice for borrowers looking for a new deal: “While the general trend for fixed-rate mortgages has been down over the past few weeks we expect to see pricing go up and down over the next six months with no visible trend.  “Borrowers may be tempted to wait for rates to fall but there is a danger they might not A potential option would be a base-rate tracker mortgage with no early repayment charges enabling you to move onto a fixed rate should pricing come down further “Another option could be to take a two-year fixed-rate mortgage with a view to taking a longer-term fix when that comes to an end in the hope that they may then be cheaper.” Figures released today by HM Revenue and Customs also highlight how higher mortgage rates are taking their toll on the housing market.  Data for stamp duty receipts show there were 77,390 residential property sales in January – a fall of 7% annually and down 27% since December 2022 For non-residential sales there were 8,500 transactions – an 11% annual fall commercial director of property lender MT Finance says: “Volumes are relatively similar to pre-pandemic levels which is encouraging transaction levels are nowhere near where they need to be.  “We still need to find a way to stimulate the market and enable more people to buy property There isn’t an easy solution but something has to be done to enable more to get onto the first rung of the ladder.  “It makes sense that January’s transactions would be down on December’s and in the coming months we expect to see more of a downward trend.” Virgin Money has increased rates across its fixed-rate remortgage range by up to 0.25 percentage points as costs fall across the wider mortgage market Virgin’s two-year fixed rates will rise by 0.2 percentage points to 4.79% (65% Loan to Value) and 4.89% (75% LTV) Virgin’s three-year fixed rate will increase by a steeper 0.25 percentage points to 4.59% (75% LTV).  The lender’s five-year fixed rate will also be nudged upwards by 0.04 percentage points to 3.99% (65% LTV) Virgin still remains among a small group of lenders offering five-year fixed rates at under 4% Santander has cut its fixed mortgage rates and is offering a five-year fixed rate deal at 3.99% joining a glut of other lenders to bring five-year fixes down under 4% The new rate represents a 0.19 percentage point cut by Santander on its previous five-year fixed deal which was itself launched earlier this month Virgin Money and the Nationwide and Yorkshire building societies are already offering five-year fixed rates at 3.99% (see stories below) Santander is also cutting other fixed residential mortgage rates by up to 0.5 percentage points and buy-to-let rates by up to 0.3 percentage points It is offering a fee-free two-year fix at 75% LTV from 4.79% for residential borrowers It has a two-year fix at 5.59% for remortgage buy-to-let customers at 75% LTV is adding more weight to the recent swathe of mortgage rate reductions by lowering the cost of its fixed and tracker deals by up to 0.70 percentage points starting costs for five-year fixed rate mortgages at Nationwide will be pegged down by 0.19 percentage points to 3.99%.  The move brings it into line with rivals Virgin Money Yorkshire building society and First Direct which already offer sub-4% five-year fixes (see stories below) The newly-priced five-year fix – available with a 40% deposit – comes with a £999 fee although a fee-free option is available priced at 4.18% Reductions are less generous on tracker mortgages which follow movements in the Bank of England Bank rate (currently 4%) Costs for a two-year deal start at 4.24% with a £999 fee having been cut by just 0.05 percentage points Existing customers at Nationwide looking for a new deal will see reductions of up to 0.41 percentage points with rates starting from 3.94% for a five-year fix The lender promises that ‘switchers’ will be offered rates that are the same or lower than the equivalent deal for new customers who will see up to 0.70 percentage points knocked off selected two which has seen the biggest reduction of 0.7 percentage points First-timers at Nationwide can continue to choose between £500 cashback or free standard legal fees The latest moves are the fourth round of mortgage rate reductions that Nationwide has announced since the start of the year and the ninth since last Autumn’s mini-Budget First Direct is cutting fixed mortgage rates across its range by up to 1.05 percentage points It is also joining the ranks of lenders offering a five-year fix at under 4% further fuelling competition in this sector of the market The bank says its five-year fixed rate will be priced at 3.99% after a 0.25 percentage point cut (60% LTV) HSBC and Yorkshire building society are offering sub-4% five-year fixes – the first time rates have dipped below 4% since September last year First Direct’s 10-year fixed rate has seen the biggest cut of 1.05 percentage points and is now at 4.04% (60% LTV) with a £490 fee The two-year fixed rate starts at 4.49% (60% LTV) The bank’s mortgages are available to all new and existing customers.   said: “These latest rate reductions are the most significant to be implemented to the First Direct mortgage range since last autumn Our biggest rate cuts are across our 10-year range as we recognise that many customers will want long-term peace of mind at the moment.” NatWest will allow mortgage customers to make overpayments of up to 20% of the outstanding balance per year – the previous maximum was 10% Most lenders allow borrowers to make penalty-free overpayments each year of up to 10%.  for customers making lump sum overpayments in excess of £1,000 this will mean their monthly mortgage repayment will be recalculated This will reduce monthly mortgage repayments afterwards – so effectively the benefit of the overpayment is calculated immediately For those making overpayments less than this amount but it will mean they’ll have a lower balance to refinance when it comes to a new fixed term deal The bank has said it will write to customers who have a regular monthly overpayment of more than £500 a month (or more than 8% per year) to let them know about the increase to its overpayment allowances.  Mark Harris at broker SPF Private Clients said: ‘NatWest joins a handful of lenders which allow 20% overpayments Suffolk Building Society will even allow up to 50 per cent overpayments without penalty.  “But given household incomes are so under pressure at the moment it is hard to see whether many borrowers will be able to take advantage of these increased limits “Research by Lifesearch estimated that only 7% [of borrowers] overpaid on their mortgage during the first half of 2021 But anecdotally overpayments are rarely made to their maximum capacity it’s unlikely that other lenders will follow suit.” Mortgage rates have also continued to fall across the market as lenders jostle for business The latest providers to make changes include:  Moneyfacts has reported the number of mortgage deals available has increased to 4,341 – up from 3,643 last month The latest product count sits above 4,000 for the first time since August 2022 a positive sign of stability returning to the market after product choice plummeting after the mini-Budget in September last year The average shelf life of mortgage deals also increased to 28 days and a significant improvement on the 15 days seen last month Santander and the Yorkshire and Skipton building societies are among a slew of lenders to have cut fixed mortgage rates in recent days A round-up of the latest rate changes includes: director of mortgages at Yorkshire Building Society said: “We’re actively monitoring market developments and are committed to taking every possible opportunity to pass on savings to help people reduce what is Virgin Money has slashed its mortgage rates by up to 0.51 percentage points and launched a sub-4% five-year fixed rate while Dudley building society and Together have also trimmed rates down HSBC announced a sub-4% five-year remortgage fix dipping below the current Bank rate set by the Bank of England (see story below) are looking for a longer term product which guarantees a fixed rate and a consistent payment for the term of the product.  “Our new five and 10-year fixed rates at 95% LTV offer exactly that and mean more aspiring homeowners can get their foot on the housing ladder.  “We’ve also refreshed our range of intermediary exclusives including a competitive five-year fixed rate starting from 3.95% as we continue to support many types of customers with their mortgage needs.” HSBC has cut its fixed mortgage rates by up to 0.45 percent points and is offering a five-year deal priced below the Bank of England bank rate of 4% This is the first five-year fixed rate at under 4% since September 2022 The new rate is 3.99% (down from 4.29%) for remortgage customers with at least 40% equity in their home It is offering a fee-free five-year fixed rate at 5.19% (down by 0.45 percentage points) for first time buyers with a 5% cash deposit The equivalent two-year first time buyer fixed rate is now 5.84% (down 0.35 percentage points).  which sees reductions across almost every fixed rate mortgage for new and existing residential borrowers It has also made reductions to buy-to-let mortgage deals of up to 0.3 percentage points Nationwide building society has cut fixed rates again – the third time this year It has cut by up to 0.75 percentage points across its range It is offering a 10-year fix at 4.34% for first time buyers at 75% LTV and with a £999 fee Its five-year rate for remortgage customers is 4.49% This is at 85% LTV and also with a £999 fee Broker-only lender Foundation Home Loans has cut rates by up to 0.9 percentage points for residential and buy-to-let mortgages Its five-year fixed rate deal for owner-occupier borrowers is 6.59% Buy-to-let fixed rates now start from 5.89% head of mortgages at online broker Better.co.uk said: “We now expect to see more lenders following HSBC The price war is in full swing with HSBC taking the big leap of offering sub-4% fixed rates over five-years This is positive for the consumer and should be an encouraging sign of what the year will hold.” Skipton building society and Gen H Mortgages are the latest lenders to cut fixed mortgage rates as one online broker reports a record month for home loan enquiries The number of available mortgage deals increased last month There are around 4,350 residential mortgage deals on the market compared to 3,640 at the start of the year and just 2,560 since last Autumn’s mini-Budget But it is still a lot lower than the 5,300 deals available in December 2021 Mortgage borrowers on tracker and standard variable rate deals are set to see their monthly repayments rise after the Bank of England today increased the Bank Rate by 0.5 percentage points from 3.5% to 4% A homeowner with a £200,000 repayment tracker mortgage over 25 years will see their monthly payment rise by around £50 from £1,052 per month to £1,108 This is assuming a competitive tracker rate of 0.47 percentage points above the Bank Rate.  A similar borrower paying the market average standard variable rate (currently 6.7% according to our online broker partner Better.co.uk) will pay £63 more per month from £1,376 to £1,439 – if their lender increases its SVR by the full 0.5 percentage points It is the 10th increase to interest rates since December 2021 and Bank Rate is now at its highest level in 15 years An estimated two million homeowners are on variable rate deals A borrower with a £200,000 repayment mortgage who has been on their lender’s standard variable rate during the past 12 months could be paying up to £450 a month more in mortgage costs now compared to December 2021 – when the base rate was 0.1% seeing their monthly bill go from £994 in 2021 to around £1,450 now While competitive fixed mortgage rates have been falling in recent weeks today’s Bank rate rise is likely to further dampen activity in the already subdued housing market.  The rate of annual house price growth slowed from 2.8% in December 2022 to 1.1% in January 2023 according to Nationwide Building Society’s latest house price index Prices fell 0.6% month on month and are now 3.2% below where they stood in August 2022 Avinav Nigam at real estate investment platform says: ‘Rising interest rates have major consequences for the housing market There is an immediate increase in the cost of mortgages for borrowers on variable-rate mortgages which could mean an increase in the supply of properties for sale with negotiating power shifting to buyers.  “Higher interest rates alongside labour and material price inflation mean that building new homes is getting harder and more expensive director of London estate agency Antony Roberts says: “Given that it’s the 10th rate rise in a row and we are already working with a smaller pool of buyers this latest rate rise will not be helpful to the market.’ recently published guidance for lenders around forbearance and how they can help mortgage borrowers who are struggling It came as it released figures estimating around 750,000 households are at risk of mortgage default over the next two years due to rising interest rates and escalating costs Aldermore has cut mortgage rates for residential and buy-to-let borrowers by up to 0.97 percentage points It is the second time the lender has reduced rates this year The bank has announced the launch of a limited run of fixed rate owner-occupied and buy-to-let mortgages and is offering a two-year fixed rate at 5.49% at 75% LTV with no fee The same fixed interest rate is also available over five years These deals are for owner-occupied mortgages Aldermore has a five-year fixed rate at 5.54% at 75% LTV Multi-property investors and company landlords can get a five-year fixed rate at 5.44% (also 75% LTV) with a 1.5% fee NatWest and Virgin Money announced cuts to their mortgage rates: Mortgage approvals have slumped to their lowest level since May 2020, according to the latest data from the Bank of England’s Money and Credit Report Loans for house purchase fell to 35,000 in December last year – down from 46,000 in November It was the fourth consecutive monthly fall in approvals Once figures from the initial onset of the Covid-19 pandemic and the period immediately after are excluded house purchase approvals are now at their lowest level since January 2009 The total value of new approvals fell to just £8.1 billion last month The six-month average for monthly mortgage approvals is 62,180 with a value of £14.1 billion Approvals for remortgaging (with a different lender) fell to 26,100 in December last year down from 32,600 in November – the lowest level seen since January 2013 (25,800) there was a month-on-month decline from £6.9 billion to £5.6 billion.  the six-month average for remortgages is 45,938 approvals at a value of £9.4 billion The main driver behind the slow down in mortgage activity has been the steep increase in mortgage rates Bank of England figures show the interest rate paid on new mortgages increased by 0.32 percentage points in December to 3.67%.  This is the biggest monthly increase since December 2021 when the recent series of Bank of England Bank Rate increases began Figures compiled for Forbes Advisor by online mortgage broker Better.co.uk show that while fixed rates have steadily fallen over the past three months they are up to 3.22 percentage points higher than this time last year the average two-year fixed rate is now 5.12% according to Better – this compares to an average of 5.65% in October last year (the highest average in 2022) But average two-year fixed rates were at 1.9% this time last year mortgage brokers say there is evidence of stabilisation in the market with continued rate cuts which should give borrowers greater confidence said:“Given the economic downturn from October we have naturally seen approvals drop as the consumer considers their next move.  “Historically the Christmas period has been a reflection period for reviewing finances and we have seen a strong response at the start of 2023 with consumer confidence coming back and lenders reducing rates.  “Despite the fact we expect the Base Rate to increase on 2 February lenders are optimistic this will have little impact on the current rates available and there will be further competition in the market with lenders competing on pricing “This alone should give the consumer more confidence that we’re moving into a period of stability said: “At first sight the numbers are gloomy This is at least partly down to the average rate on new mortgages continuing to rise significantly this comes on the back of significant increases in the average rate paid over the previous three months the situation has significantly eased for borrowers Lenders continue to chip away at fixed-rate mortgage pricing with Virgin Money reducing its five-year fixed rate to 4.17% it won’t be long before the psychological 4% barrier is breached making fixes considerably more attractive than they were just a few weeks ago.” the buy-to-let lender owned by Nationwide building society is the latest lender to cut rates across its fixed mortgage range by up to 0.5 percentage points Its two-year fixed rate loan is now 3.99% (at 65% LTV) At 75% LTV two year fixed rates start from 4.29% and five-year rates are from 4.79% These deals are for purchase or remortgage and all carry a 3% arrangement fee Fixed rates for landlords with large portfolios see the biggest (0.5 percentage points) cuts The fee-free two-year fixed rate (75% LTV) falls from 6.09% to 5.59%.  TMW’s tracker mortgage rates have been increased by up to 0.2 percentage points.  The no-fee two-year tracker deal is 4.99% (65% LTV).  TMW follows a slew of lenders who have trimmed their fixed rate mortgages down in recent weeks as competition for new business has increased Daniel Clinton at The Mortgage Works said: “These latest rate reductions which are being rolled out across a significant number of products will see our headline two-year fixed product fall below four per cent and shows that we are doing what we can to support landlords to manage their finances.” the mortgage brand owned by Yorkshire Building Society have both cut rates across their mortgage ranges following the market trend for rate cuts in recent weeks More lenders have trimmed mortgage rates as competition for business remains strong Our round-up of the latest mortgage rate changes includes: Here’s our latest round-up of the changes: You can read more about available mortgage rates here Lenders are continuing to take a knife to their fixed rate mortgage deals as competition returns to the market A roundup of the latest lenders to reduce rates includes: Sam Amidi, head of mortgages at our broker partner Better.co.uk said: “With [wholesale market] swap rates dropping in recent weeks we’ve seen more lender confidence in reducing rates.  “Despite the imminent announcement on the Bank rate by the Bank of England in February – with rates expected to increase again – lenders’ confidence in reducing rates is a good indication of where the market is heading While we don’t expect any significant rate drops small reductions can make a difference for the consumer.” Monthly mortgage payments are taking a larger bite out of typical first-time buyer household outgoings Monthly mortgage payments now account for 39% of a typical first-time buyer’s take-home pay compared to the longer-term average of around 30% according to Nationwide’s Affordability Report The findings are based on first-time buyer households with outstanding mortgages at 80% of the property value Against a backdrop of nine interest rate rises during 2022 mortgage costs surged after the ill-starred mini-Budget in late September reaching their highest levels since 2010.  while financial conditions have largely since stabilised mortgage rates have not recovered to levels seen before the mini-Budget said: “The biggest change in terms of housing affordability for potential buyers over the past year has been the rise in the cost of servicing the typical mortgage as a result of the increase in mortgage rates.  “This measure is now well above the long run average and close to the levels seen in the run up to the financial crisis.” Mortgage rates peaked at around 6.5% last October According to data from online mortgage broker Better.co.uk the average cost of a two-year fix now stands at 5.10% rates are higher for small-deposit mortgages most common among first-time buyers While house prices have fallen in recent months raising a deposit also remains a significant barrier to buying a first home A 20% deposit on a typical first-rung property is now equivalent to 112% of the full-time worker’s pre-tax income – a similar level to a year ago and only just shy of the all-time high of 117% recorded earlier in 2022 A separate report from estate agent Hamptons revealed that the number of private renters grew by 1.12m over the last decade – led by the 10% most deprived areas of England and Wales Hamptons found that around 23% of households in the poorest 10% of the two nations rent their homes privately – up from 18% a decade ago said: “Growth in the private rented sector over the last decade has come on the back of fewer younger people buying their own home More than 750,000 households are at risk of defaulting on their mortgages in the next two years according to the Financial Conduct Authority (FCA) In a letter to the cross-party Treasury Select Committee said 200,000 households had already fallen behind with their home loan repayments by June 2022.  FCA data and estimates predict a further 570,000 are at risk of ‘mortgage payment shortfall’ over the next two years This is when more than 30% of a borrower’s gross household income is going towards mortgage payments The figures throw the spotlight on the rising cost of living crisis as millions of households face the double whammy of rising interest rates and inflation at levels not seen for 40 years It comes just days after the Office for National Statistics reported that 1.4 million households will face higher mortgage payments this year as their fixed rate deals come to an end and they remortgage to a more expensive loan Mr Rathi said: “This number [of at-risk borrowers] is sensitive to changes in interest rates and factored in market interest rate expectations as of 23 September as well as external forecasts of changes in real incomes between 2020 and 2022.  “Specifically we assumed that all households would experience a 10% fall in their real incomes over this period “This does not necessarily mean that those at risk will miss a mortgage payment because some people will be able to reduce their spending or make use of savings to help them meet their mortgage commitments.” Mr Rathi adds that any borrower who is facing financial difficulty should contact their lender to look at ways to reduce or smooth the increases to their mortgage payments He said the FCA is continuing to work with lenders and has published guidance to firms about forbearance and how to help customers who are struggling New mortgage deals have the shortest shelf life ever at just 15 days on average before being withdrawn This is the joint lowest amount of time on record this time last year mortgage deals were available for 28 days on average But while this points to increased volatility in the mortgage market which could cause difficulties for borrowers looking to secure a new deal Our mortgage partner, better.co.uk reports the average two- and five-year fixed rates have tracked steadily downwards in recent weeks following 13 consecutive months of rises up to November 2022 Product choice is also showing signs of improvement following a significant drop in available deals at the end of last year.  There are currently more than 3,600 mortgage deals available according to Moneyfacts – this compares to the 2.258 on the market  in October 2022 But this is still down on the 5,394 deals available in January last year Rachel Springall at Moneyfacts said: “As existing mortgage holders weigh up their refinancing plans and others debate their home purchase desires in 2023 the cost of living crisis and inflated interest rates over recent months may well impact borrowers’ intentions of getting a new deal.  it is anticipated that fixed interest rates will fall further in the months to come to entice new business.” Nearly one-and-a-half million UK households with fixed-rate mortgages face substantially increased borrowing costs when they renew their home loan arrangements this year according to the UK’s official data provider The Office for National Statistics (ONS) says that 1.4 million mortgage customers, who bought properties with fixed-rate home loans when interest rates were set below 2% are due to renew their arrangements in 2023 which currently stands at 3.5% – having risen nine times and by 3.4 percentage points since December 2021 – is an important measure that affects both the cost of borrowing as well as the amount of interest that banks and building societies pay to savers most borrowers with fixed-rate mortgages have been insulated from their effects because they have remained within the offer periods for their home loans the ONS estimates that around 353,000 fixed-rate mortgages are due to be renewed between January and March this year It adds that the number of fixed-rate mortgage deals due to expire during the course of 2023 will then peak at around 371,000 between April and June 2023 the average two-year fixed-rate deal stood at 2.38% a year ago but has increased markedly over the intervening period to 5.79% today at Hargreaves Lansdown said: “1.4 million mortgage borrowers are in a fixed-rate deal that’ll set them back an extra £250 a month by the end of the year They’re coming to the end of fixed-rate deals most of which feature interest rates under 2% and face fixing at as much as 6% going forward.” or reverting to a sky-high standard variable rate financial planning director at wealth manager Evelyn Partners said: “Households must be prepared for increased outgoings this year Remortgaging to substantially higher rates will “Those who have deals expiring this year face a difficult choice as to whether to fix again The former could mean locking in at a relatively high interest rate in order to achieve certainty The latter could mean rising payments in the short-term but possibly lower payments in the medium-term as benchmark interest rates plateau or even start to come down.”  For those looking for some certainty over repayments This is because if rates fell in the next year or two home loan customers could then step on to a better deal is that those who are already paying a substantial proportion of their net income in mortgage costs will be stretched by the increased payments on their new deal they could be forced into reducing any savings provision they are already making whether in the form of cash deposits “One tactic some will turn to is to negotiate a longer-term mortgage in excess of 25 year and for many that could take repayments into retirement age for one or both of the borrowers,” Evelyn’s Gary Smith said “This can be a reasonable move either if there is a plan to overpay in future years before retirement or if the borrowers are comfortable that they can continue to repay a mortgage after retiring without significantly impacting their living standard it could mean putting off retirement to a later date.” Competition in the home loan market has started to intensify as news emerges that several high street lenders are cutting interest rates on their fixed mortgage deals TSB and Virgin Money have all announced plans to cut mortgage rates in what will be welcome news for borrowers Mortgage brokers say they also expect more lenders to follow suit as stronger competition returns to the mortgage market The news comes despite big increases to the Bank of England’s base rate during 2022.  currently stands at 3.5% having risen nine times since December 2021.  Nationwide has cut its fixed mortgage rates by up to 0.6 percentage points for first-time buyers home movers and remortgage customers.  Rival high street lender TSB is cutting fixed rates for purchase and remortgage by up to 1.3 percentage points from Monday (9 January) Virgin Money has also reduced its fixed rates by up to 0.93 percentage points The lender has also launched a range of new residential and buy-to-let mortgage deals is offering a five-year fixed rate of 4.43% aimed at remortgage borrowers with at least 60% equity in their property for borrowers with 20% equity in their home First-time buyers with a 15% cash deposit can secure a two-year fixed rate with Nationwide at 5.09% said: “We saw less movement on mortgage rates at the end of 2022 as most lenders had hit their mortgage quota for the year TSB and Virgin show competition in the market is returning and we expect more lenders will cut rates in the coming weeks.” The number of mortgages approved for house purchases fell to 46,100 in November from 57,900 in October.  It marks the lowest level recorded since June 2020 (40,500) when the property market ground to a halt during the Covid pandemic Approvals for remortgaging – as defined by switching to a different lender – plummeted to 32,500 in November from 51,300 in October This is below the previous six-month average of 48,100 from the Bank of England’s latest Money and Credit Report are evidence of a weakening property market due to rising borrowing costs falling property prices and the negative after-effects of last September’s mini-Budget under then-Chancellor personal finance analyst at investment platform commented: “November’s drop in mortgage approvals and remortgaging is no surprise when you consider the catalogue of challenges facing the property market double-digit inflation and falling real wages impacting affordability for both first-time buyers and those looking to refinance.” The figures also reflect many buyers failing affordability checks or struggling to secure a mortgage at all after a spate of major lenders pulled deals following the mini-Budget individual mortgage debt increased to £4.4 billion from £3.6 billion in October On the back of nine interest rate rises in 2022 Interest paid on new borrowing rose by 26 basis points to 3.35% while rates on existing mortgages increased by 9 basis points to 2.38% mortgaged first-time buyers are still set to make up 53% of the property market in 2022 according to separate research from Yorkshire Building Society – the UK’s eighth largest mortgage lender.  the forecast number of first-time buyers for 2022 will represent the second highest annual total for 14 years.  Yorkshire Building Society’s strategic economist who forecasted the figures said: “Demand from first-time buyers remains strong even with house prices being at historic highs for much of the year and the country experiencing such political and economic uncertainty.” The government has announced that its Mortgage Guarantee Scheme (MGS) will be extended by a year the scheme enables first-time buyers to buy a home with a 5% deposit.  With average property values in the UK well above £260,000 many first-time buyers – who make up 85% of all housebuyers – struggle to raise the funds for deposits the more favourable the terms of the mortgage tend to be MGS has thus far helped over 24,000 households get onto the property ladder Under the scheme the government offers mortgage lenders financial guarantees so they can provide mortgages that cover 95% of the purchase price said: “Extending this scheme means thousands more families have the chance to benefit and it supports the market as we navigate through these difficult times “To also help people to get onto the property ladder the government has increased the level where first-time buyers start paying stamp duty from £300,000 to £425,000 first-time buyers can get relief on properties costing up to £625,000 Both of these measures are time-limited to April 2025.” Mortgage customers concerned about affording their repayments should receive guidance and support from their lender to help them weather the cost of living crisis according to the Financial Conduct Authority The regulator wants banks and building societies to provide tailored support and measures including: any deferment of interest owed will lead to higher repayments at a future date while extending the term will increase the total amount paid over the life of the mortgage extending the term beyond retirement age may not be possible if the lender calculates that you would not be able to afford repayments at that point Interest-only deals (as opposed to standard capital and interest mortgages) work by deferring repayment of the capital debt until the end of the loan period so they are only available to those who have a credible way of repaying the total amount at the end of the mortgage Anyone switching to interest-only terms temporarily would face higher repayments when the short-term arrangement came to an end Making changes to your mortgage may also affect your credit file with prospective lenders in the future being able to see that you took action because of fears of meeting your repayments The regulator says anyone worried about being able to afford their mortgage payments should contact their lender as soon as possible Its rules mean lenders are required to treat customers fairly and give them support tailored to their circumstances.  head of consumers and competition at the FCA said: “Most borrowers are able to keep up with their mortgage payments and should continue to do so But if you’re struggling to pay your mortgage Your lender has a range of tools available to help so you should contact them as soon as possible.” Lenders have until 21 December to respond to the regulator’s latest guidance which was issued after the government hosted a roundtable discussion on Wednesday with the FCA lenders and consumer representatives to discuss the impact of the cost of living crisis on the mortgage market lenders committed to enabling customers who are up to date with payments to switch to a new competitive mortgage without another affordability test (an assessment of their ability to make repayments) More information will also be provided to help customers plan ahead when their fixed-rate mortgage deal comes to an end The government also confirmed that it will make the Support for Mortgage Interest benefit easier to access This enables those on Universal Credit to apply for help with mortgage interest payments The Bank of England yesterday increased its Bank rate by 0.75 percentage points to 3% in a bid to stave off steepling levels of inflation And what are the implications for borrowers The Bank rate is important because it is used by banks building societies and other financial institutions to determine both lending costs and the returns paid on savings the Bank pointed to a “very challenging outlook for the UK economy” It added that it expected “the UK to be in recession for a prolonged period” and warned that consumer price inflation “would remain elevated at levels over 10% in the near term” Financial markets reacted to the news by estimating that official interest rates would top out at about 4.75% by next autumn Many mortgage rates will then be set at a premium to this level The Bank’s decision on Thursday will drive up costs straight away for around 2.2 million UK mortgage customers that have taken out variable rate or tracker mortgages The latter mirror movements in the Bank rate so borrowers will experience an immediate knock-on in terms of their monthly repayments in comments made after the initial rate-setting announcement suggested markets had over-exaggerated their predictions for future rate rises He added that lenders would need to reflect this in their mortgage pricing He said: “[The Bank rate] will have to go up by less than currently priced into financial markets it means that the rates on new fixed-term mortgages should not need to rise as they have done.” said he thought that fixed-rate products are likely to remain stable or perhaps even fall further: “Many fixed-rate products sit somewhere between 5.5% and 6% instruments used by lenders to price mortgages we believe that many borrowers could still enjoy fixed-rate products starting with a four.” a mortgage broker at Henchurch Lane Financial Services said: “Fixed rates have already factored in the latest increase so they shouldn’t move any further north are now coming down as some confidence is restored to the market following the U-turn on everything done by Kwasi Kwarteng and Liz Truss.” said: “The key from a borrower’s perspective is how the swap rate markets react to this increase and the Autumn budget [on 17 November] given that fixed-rate mortgages are still the most popular option for most people “But even if fixed-rates drop from the peaks seen in October we’re still entering a prolonged period of higher rates than most borrowers have been used to for the past 15 years This will undoubtedly put pressure on affordability and exacerbate the current cost of living crisis for many mortgage and protection adviser at Key Financial Associates said: “The latest rate rise potentially kills the [house] purchase market stone dead and is catastrophic for anyone coming out of a fixed rate.  “Anyone who fixed their mortgage last year for longer than 2 years at less than 2% for some and less than 3% for others may not need to change their spending habits for now But for those families whose fixed-rates end in the next few months this could mean mortgage defaults and even repossession “Anyone who has a mortgage with a fixed rate ending within the next six months who is worried about this and the effect it will have on them should speak to a mortgage broker as soon as possible It has never been more important to be proactive.” Henchurch Lane’s Paul Holland adds: “Bank rate predictions for the next year are tending to fall somewhere in the 4% to 5% bracket This is expected to be relatively short-term with a target Bank rate of close to 2.5% over the longer term “This means that anyone looking at any kind of new mortgage rate for the next year or so whether that be on a purchase or a renewal basis is likely to be paying a fair amount higher than what they’ve been used to for a while now “Some conversations we’re having with clients include options around tracker rates as well as longer mortgage terms and interest-only products all of which should go some way to helping reduce the impact in the short term increase.  “Budgeting and planning should be at the forefront of any advice process It’s time for people to start looking at their situations earlier than normal to ensure they’re not stuck later on.” Higher interest rates could leave up to 40% of homeowners struggling to pay their mortgages next year Investment firm Morgan Stanley shared analysis showing that between 35% and 40% of UK mortgages will reach the end of their initial terms over the next 12 months leaving mortgage holders to negotiate new deals at much higher rates The firm predicts mortgage rates of around 6% would overstretch up to 4 in 10 UK households as rates rise alongside escalating energy bills Its research found 30% of households with the lowest income make up 5% of the mortgage books Morgan Stanley said mortgage affordability could be worse in the next year than it was prior to the global financial crisis.  that the quality of mortgage underwriting is higher now than it was pre-crisis meaning current borrowers’ applications were more carefully vetted than they were before 2008 As mortgage holders anticipate painful remortgage rates experts are advising anyone who can make overpayments to do so now as it could qualify them for a lower-rate LTV band on their next deal and reduce interest payments in the long term Most mortgage lenders allow borrowers to pay up to 10% of the outstanding loan every year penalty-free.  Mortgage lenders are pulling deals due to the volatility of sterling on international currency markets and the prospect of interest rate rises to 6% by next year Halifax and Skipton Building Society are among the major lenders that have closed mortgage offers to new customers in the last couple of days existing mortgage applications will be processed as normal Smaller lenders are also retreating from the market with Nottingham for Intermediaries withdrawing 14 deals from its shelves and repricing a range of residential and buy-to-let mortgages Scottish and Darlington building societies are also reported to be pulling their fixed rate products said: “The future is certainly looking bleak when Halifax pulls a big selection of products on offer “The UK economy is on red alert and lenders and borrowers alike are having to keep a keen eye on what is a rapidly changing rate environment.” Lenders are reacting to uncertain future pricing conditions The sudden fall in the pound on Monday led to fears of further inflation and the prospect of the Bank of England responding with more rate hikes.  Last week the Bank’s rate-setting Monetary Policy Committee (MPC) raised interest rates for the seventh consecutive time to 2.25% While the Bank swerved a swift emergency rate rise this week it said it will monitor the volatile performance of sterling and it “will not hesitate” to raise the Bank rate to control inflation when it next meets on 3 November Financial turmoil follows the raft of tax cuts announced by the Government in its mini-Budget on Friday which triggered market uncertainty around the UK’s level of borrowing Fixed rate mortgages – the most popular type of deal among borrowers – are priced according to ‘swap’ rates which reflect expected interest rate movements The cost of the cheapest two- and five-year fixed rate mortgages is now more than three times higher than a year ago so borrowers coming to an end of their deal now will face higher costs and have fewer mortgages to choose from Mortgage lenders allow you to book in your next mortgage rates up to six months in advance it could pay to contact a fee-free broker ahead of time at least unlocking the cheapest of the higher-priced deals available Mortgage borrowers – and those attempting to get onto the housing ladder – were handed a further blow today as the Bank of England announced a seventh consecutive rise in interest rates.   The 0.5 percentage point hike from 1.75% to 2.25% agreed by the Bank’s rate-setting Monetary Policy Committee (MPC) will affect around 2.2 million households on variable rate mortgage deals.  The hike will add around £99 a month onto the cost of a £400,000 mortgage £62 a month onto the cost of a £250,000 mortgage or £37 a month onto the cost of a £150,000 mortgage Borrowers on tracker rates – which mirror movements in the Bank rate by a set margin – will see an immediate impact in payments while those paying standard variable rates (SVRs) will see the rise at their lender’s discretion.  pressure is mounting on lenders to refrain from passing on the full impact of the latest rise as households continue to struggle with rising living costs average SVR costs stood at 5.4% according to Moneycomms.co.uk Those looking to buy for the first time will have an even steeper road to climb in terms of showing sufficient affordability against lenders’ more expensive mortgage rates said: “There’s never been a harder climate for first-time buyers in the UK The combination of sky-high property prices and rapidly rising essential living costs have made it nearly impossible for many wanting to take their first step onto the property ladder.” Mortgage deals of up to 95% of the property value are available while first-time buyers in England and Northern Ireland are exempt from paying stamp duty on the first £300,000 Government schemes such as Help to Buy are available to help bridge affordability shortfalls Until the rate of inflation cools from its current rate of 9.9% – the government target is just 2% – further interest rate rises are widely expected the Bank of England has revised its peak inflation forecast down from 13% by the end of the year to 11% in October While there is nothing you can do about rising interest rates it is possible to book a mortgage rate for your current home up to six months in advance –  even if you are currently tied into a fixed rate deal.  Use our live mortgage tables to find out what kind of mortgage rates are  available for your needs and circumstances Rules for would-be mortgage borrowers have been relaxed from today as lenders no longer need to apply additional affordability tests banks and building societies had been forced to calculate whether prospective borrowers could afford their mortgage payments if the interest rate they were being offered was to rise by 3 percentage points during the initial five years of the loan The rules were introduced by the Bank of England in 2014 and revised in 2017 interest rates only increased by a maximum of just 0.5 percentage points between 2017 and 2021 prompting concerns that the 3% ‘stress test’ uplift was too high Lenders will now base their calculations on forecasted interest rates although this must include a minimum ‘stress buffer’ of at least 1 percentage point above a borrower’s original mortgage rate “won’t have a big impact on lenders’ affordability calculations as they will need to factor in increases in utility bills.” Energy bills are expected to soar as high as £3,500 a year in October for a dual-fuel typical-use household some forecasters are suggesting that interest rates will rise to 1.75% when the Bank of England announces its next decision on Thursday launched a new 10-year fixed rate mortgage in response to growing demand for greater security around household finances Borrowers are permitted to make an unlimited number of overpayments during the fixed-rate term with no penalty lenders limit overpayments on fixed rate deals to 10% of the outstanding loan each year.  Interest rates on the mortgage – which is capped at a maximum loan size of £550,000 – are priced between 3.34% and 3.69% depending on the size of your deposit.  borrowers with the minimum 20% deposit will pay 3.59% with a £490 product fee or the slightly higher rate of 3.69% for the fee-free option The mortgage is available to first-time buyers and those looking for additional borrowing while borrowing terms can extend to up to 40 years First Direct joins a number of other lenders to offer 10-year fixed rate mortgages including Halifax as demand grows for long-term financial certainty The cost of living is soaring with annual inflation at 9.1% in the year to May while the Bank of England’s Base rate has risen five times since December from 0.1% to its current 1.25% said: “The cost of living crisis in particular has forced homeowners and prospective buyers to rejig their monthly incomings and outgoings of which mortgage payments tend to take up the lion’s share.  “After a string of base rate hikes in 2022 the launch of this product is to give homeowners and buyers long-term peace of mind while external volatility – such as soaring house prices and rising utility bills – shows no signs of abating.” First direct also offers two-year and five-year fixed rate mortgages Today sees the launch of a government-backed scheme designed to help buyers with small deposits onto the property ladder with homes tailored to their exact requirements.Help to Build offers self or custom (building on an existing shell or structure) home-builders an equity loan of between 5% and 20% (up to 40% in London) so long as they can put down a deposit of at least 5% The remaining 95% must be funded with a self-build mortgage from a lender registered with the scheme which is offered by Homes England.Darlington Building Society is the first lender to launch a Help to Build mortgage which it is offering in conjunction with BuildLoan both three-year discounted rates priced at either 5.39% or 5.99%.This are offered on an interest-only basis for the duration of the build – which must take no longer than three years – but will switch to a repayment deal when the work is complete.Darlington says it will release funds in advance of each stage of the building work required.According to Housing Minister Stuart Andrew support the construction industry and kickstart a self and custom-build revolution.”However borrowers cannot use the government’s equity loan towards the cost of the build itself as the funds are paid directly to the lender only once the home is completed The purpose of the equity loan is therefore to reduce the amount that’s being borrowed on the mortgage.Repayments on the equity loan which begin at the same time as the mortgage repayments work in the same way as the government’s Help to Buy equity loan scheme Repayments then increase every April based on the cost of the Consumer Prices Index measure of inflation (as measured in the previous September) plus a further 2% CPI currently stands at a 40-year high of 9.1% Borrowers can pay back the equity loan at any time after the build is finished but it must be repaid in full by the end of the mortgage term or when the home is sold the amount you owe grows relative to the property value you will pay back more than you initially borrowed The Help to Build equity loan is not exclusively for first-time buyers but you must live in the newly-built home as your only property to be eligible It is not available to upgrade a home you already live in you will need outline planning permission for the land you want to build on before you can apply One fifth (20%) of UK homeowners say they are unsure how they will afford their next mortgage payment, according to a recent survey by our online mortgage broker partner, Trussle says homeowners should consider remortgaging this could save households up to £4,000 a year compared with a standard variable rate (SVR) mortgage Trussle says around 800,000 UK homeowners are currently on an SVR mortgage and only 10% of homeowners have checked whether they are able to remortgage.  Ms Aumonier said: “Homeowners are facing a perfect storm of challenges that is pushing their finances to breaking point This has left many feeling deeply worried as to how they can keep paying their monthly bills and make ends meet we would urge people not to simply put their heads in the sand when it comes to their household finances There is a range of measures from remortgaging to locking in a long term deal that can help give you greater stability and certainty.” Although interest rates have risen fixed mortgage rates remain competitive and the gap is closing between the cost of short and longer-term deals Trussle has found a difference of just 0.45% between the average two-year and 10-year fixed mortgage interest rates as of June 2022 The Bank of England (BoE) is withdrawing its mortgage affordability test from 1 August.  The affordability test was introduced in 2014 and revised in 2017 It specifies a ‘stress interest rate’ to be used to calculate whether prospective borrowers would be able to meet their payments if their rate reached 3 percentage points higher than the original during the first five years of the mortgage actual interest rates increased by a maximum of only 0.5 percentage points from 2017 to 2021 prompting concerns that this 3% stress rate uplift was too high Lenders will instead base their ‘stress test’ on forecast interest rates although this must include a minimum ‘stress buffer’ of at least 1 percentage point above the original mortgage rate The move has been welcomed by Lawrence Bowles director of research at estate agent Savills: “Removing the current stress testing could mitigate some of the impact of higher interest rates it should open up a little more capacity for house price growth.”  The removal of the test should make it less onerous for prospective borrowers to prove their ability to meet future mortgage repayments rising house prices and interest rates are likely to continue to prove a hurdle for mortgage applicants The latest Rightmove price index showed a continued the BoE’s announcement should provide “welcome relief to some would-be-buyers struggling to keep up with current criteria because of significant price growth of the past two years” Lenders will now be required to assess affordability by making reference to the market’s established ‘responsible lending’ rules which include setting a maximum loan according to a multiple of the applicant’s income and analysing existing outgoings Lenders will continue to be limited by the number of mortgages they are able to offer at loan-to-income ratios of 4.5 and above with the BoE increasing interest rates for the fifth consecutive time last week Further interest rate hikes are predicted to tackle the soaring inflation rate in the UK which will have a knock-on impact on both mortgage rates and the affordability of new mortgages Mr Bowles also added that “improved capacity for growth would also be dependent on how far lenders are prepared to push loan-to-income multiples under responsible lending rules” he believes it is “unlikely to open up the mortgage-credit floodgates” says today’s decision by the Bank of England to raise the UK Bank Rate to 1.25% will be unwelcome news for the nation’s homeowners and potential buyers.  this latest rise is worrying news for the nation’s millions of mortgage holders who are already grappling – or even unable to meet – the relentless rising cost of essentials such as energy bills “Anyone paying their mortgage lender’s standard variable rate (SVR) or who is on any mortgage deal that’s linked to the Bank Rate will be forced to absorb an almost immediate impact of today’s hike into the cost of their monthly payments the latest 0.25 percentage point rise will add around £26 onto the monthly cost of a £200,000 variable rate mortgage priced at 2.5% But cumulative hikes since December 2021 – when Bank Rate stood at a much leaner 0.1% – will have added over £100 a month onto the same mortgage “First-time buyers and those looking to remortgage are likely to find that today’s hike have already been factored into the cost of new mortgages while homeowners who are part-way through a fixed-rate mortgage will be sheltered from rate rises for now “But when their fixed deal ends they will be facing much higher mortgage costs it might be worth considering reserving your next mortgage deal on your current home which you can typically do between three and six months in advance of it starting This essentially means securing rates as they are today and taking advantage later in the year if they have since gone up “There is no obligation to take the deal so there’s nothing to lose if you change your mind.” The number of mortgage applications rejected because a lender thought a property wasn’t worth the amount the applicant wanted to borrow has doubled since the Covid-19 pandemic where there’s a mismatch between the agreed sale price of a property and the valuation carried out on behalf of a mortgage lender can cause serious problems with mortgage applications a borrower might agree a sale price of £350,000 with a property owner only to find their mortgage lender values the property at just £300,000 and rejects their application With demand outstripping supply in the housing market buyers are increasingly willing to pay over the odds for properties leading to the increase in down valuations according to an online mortgage broker Mojo Mortgages Its research shows the rate of down valuations was at 12.8% in April up from 10.4% a year earlier and double its mid-pandemic rate of 6.4% in December 2020 Down valuations on remortgages was higher in April co-founder and chief executive of Mojo Mortgages said: “The property market has seen unprecedented demand over the last couple of years with month after month of record price rises.  some sellers are trying their luck and setting a selling price higher than estate agents recommend sellers are trying to see what they can achieve.  “With supply of new homes onto the market still well below demand buyers are also willing to pay more for a property because of the lack of similar alternatives.” Buyers faced with down valuations may be able to renegotiate the sale price with sellers especially if the sellers themselves are in the market for a new property and are relying on the sale to fund their next purchase Some lenders also allow appeals on down valuation decisions but require strong evidence about the sale prices of other properties in the same area in order to change their decision it may be that a valuation has been carried out remotely by someone at their desk It may be worth asking for an in-person valuation to reevaluate anything you think they might have missed Each lender handles down valuations differently will return a valuation that’s closer to your agreed sale price.  Or if you’re able to increase your deposit you could close the gap between the lender’s valuation and the sale price.  you could speak to your lender about a higher loan-to-value (LTV) ratio – that is the amount you want to borrow in relation to the value of the property that higher LTVs typically mean higher rates of interest and more expensive monthly repayments Figures from Halifax earlier this week showed average house prices grew by 10.5% in the year to May Prices grew by 1% compared to April marking the 11th consecutive month of price rises partially caused by the imbalance of supply and demand in the housing market First Direct has launched its first ever 95% loan to value (LTV) mortgage for first-time buyers and people moving home.  Borrowers with a 5% deposit can choose from a two-year or five-year fixed rate The deal is available on loans of up to £550,000 meaning that buyers are able to borrow up to £522,500 if they have a deposit of £27,500 In further bid to ease affordability constraints First Direct’s 95% mortgage is available over a repayment term of up to 40 years it also permits unlimited overpayments which can be made at any time enabling borrowers to essentially reduce this term penalty-free said: “While the property market continues to speed along in the fast lane While house prices continue to outpace deposits we see this as a viable way of helping people onto the ladder.” The mortgages also come with a six-month Agreement in Principle (AIP) compared to an industry average of two to three months There are currently 56 mortgages available at 95% LTV, according to online mortgage broker Trussle as the deals all but disappeared from the market during the pandemic over concerns around affordability In March 2021 the government launched a new Mortgage Guarantee Scheme to encourage lenders to start offering high LTV mortgages again.  Lenders that offer 95% LTV mortgages include Barclays Skipton Building Society and Clydesdale Bank First Direct’s offerings stack up well against other 95% deals which – due to the higher lending risk – come with higher rates than mortgages with lower LTVs.  Barclays has a two-year fixed rate mortgage priced at 2.67% with no fee – slightly cheaper than First Direct’s two-year deal of 2.79% as part of the government’s Mortgage Guarantee Scheme Barclays’ offering comes with associated restrictions such as it cannot be used to buy new-build homes.  offers the choice of a two-year fixed rate of 2.69% with a £999 fee while Newcastle Building Society charges 3.15% with no fee and £500 cashback Looking at five-year fixed rate 95% mortgages Barclays offers the same rate as First Direct’s 2.94% while HSBC’s offering is slightly higher at 2.99% all deals with the exception of First Direct’s limit penalty-free overpayments to 10% a year input your criteria into our mortgage tables below It’s important to factor in all considerations when choosing a mortgage tie-ins and early repayment charges.  which is what the deal will revert to at the end of the term many homeowners look to remortgage to another rate once their initial fixed rate period ends A fee-free independent mortgage broker such as our partner Trussle will crunch the numbers on your behalf and advise on the best deals for your circumstances.  said: “High loan-to-value mortgages can play a crucial role in ensuring the market remains accessible to all by slashing the size of deposits needed to secure a home We hope to see this trend continue so that everyone can aspire to own their own home.” Privacy Policy A Halifax senior who was found guilty in March of sexually abusing his daughter over a period of 38 years has died before he could be sentenced The 74-year-old man cannot be named because of a publication ban on any information that could identify the victim He stood trial in Halifax provincial court over nine days between October 2024 and January of this year Subscribe now to access this story and more: Subscribe or sign in to your account to continue your reading experience Create an account or sign in to continue your reading experience Judge Elizabeth Buckle gave her decision March 26 sexual exploitation and two counts of sexual assault The offences were committed in Halifax between January 1985 and February 2023 The judge also found the accused guilty of criminally harassing his daughter between February 2023 and September 2024 two counts of breaching an undertaking to police in June 2023 and two counts of breaching a release order in June 2023 He was acquitted on seven other charges: two counts each of invitation to sexual touching and breaching an undertaking and single counts of sexual exploitation committing an act of gross indecency by masturbating and intimidating a justice system participant The judge ordered a pair of presentence reports on the offender whose bail was revoked in January after he was arrested on new charges and scheduled the case to return to court April 14 to set a date for his sentencing hearing But the man was admitted to Dartmouth General Hospital in the interim He died in hospital of natural causes April 22 Crown attorney Carla Ball and defence lawyer Eugene Tan appeared in front of Buckle last week to wrap up the man’s outstanding matters The judge said the guilty findings will remain on the record The Crown withdrew the newer charges against the man uttering threats and seven counts of breaching release conditions Reviews and recommendations are unbiased and products are independently selected Postmedia may earn an affiliate commission from purchases made through links on this page The British Virgin Islands is an explorer's dream with more than 60 isles and cays to discover Expert-backed tips and a step-by-step breakdown to ward off these pests We tried it: Filtrete Smart Tower and the Dyson Purifier Hot+Cool Formaldehyde HP09 transmission or republication strictly prohibited This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy MATCH REPORT- HALIFAX PANTHERS 40-12 LONDON BRONCOS It was a difficult afternoon for the Broncos as they were comfortably defeated by a free flowing & confident Halifax Panthers side Despite the increased effort in the second half it wasn’t enough to be able to close the gap on the sizeable margin which Halifax had placed on London in the first half The afternoon began with Alex Walker kicking to Halifax from left to right before fans had the chance to settle themselves in their seats Halifax had already put points on the scoreboard the Panthers had their first big break of the game through the middle of the field and the ball found itself in the hands of Charlie Graham who was able to score the first try of the afternoon and with Jouffret’s successful conversion the score became Halifax 6-0 London Broncos After a five minute period of back and forth play by both sides which included a powerful Marcus Stock run into the Panthers’ half the home side struck once more with another break it was Jouffret who exploited a defensive hole on the left hand side of the pitch and with just the fullback to beat he was able to pass to James Woodburn-Hall who scored his first try of the afternoon virtually uncontested A second Jouffret conversion made the score Halifax 12-0 London Broncos after just eight minutes The third try of the afternoon for the home side came from pure intensity and power A number of explosive runs by the Panthers forwards through the London defence placed the Broncos in a vulnerable position and Adam O’Brien took advantage of his opportunity by scoring the try on the right hand side of the posts With the straight forward positioning of the tee Jouffret was able to add the extras relatively easily and the score became Halifax 18-0 London Broncos- not a good position to be in just fifteen minutes into the game the Broncos were the master of their own downfall once more as Tangata utilised his athleticism to not only break through a number of Broncos attempted tackles but then was able to take the ball down the field and pass to Woodburn-Hall who was able to score his second try of the afternoon From this point until the thirtieth minute it would be a fair assessment to say that Halifax dominated swiftly moving the ball from one side of the pitch to the other were able to march the ball down the field with a couple of miscues including an attempted pass which went out of bounds & a couple of dropped balls allowed the Broncos to keep Halifax at bay This was the case up until the thirtieth minute where Calcott was able to find another space in the defence and tucked himself in to score HALF TIME: HALIFAX PANTHERS 30-0 LONDON BRONCOS it was clear to see that London wanted to put right their wrongs of the first half; the team attacked with purpose and with the objective of putting some points of their own on the scoreboard it was clear to see that there was issues with the execution of the Broncos and mistake after mistake allowed Halifax to overcome the early threat The next big mistake for the Broncos came after Polselli failed to keep hold of the high kick on the fifth gifting Halifax a scrum in dangerous position which Tangata then proceeded to take advantage of as he scored the team’s sixth try of the afternoon there was a real spring in the step of London who looked like a different team to who had played in the first half you could make the argument that Bienek being reintroduced to the field was a big factor of this His powerful line breaks and impressive offload ability marched the Broncos deep into the Halifax half which was then taken advantage of by Polselli who exploited a gap in the middle of the park to score London’s first points of the day the Broncos found themselves with even more points on the board as Bienek powered his way through the defence from the restart and offloaded to Adebiyi who was able to drive the ball into the Halifax half the high kick was gathered by Polselli who was able to make the offload to Walker who could score under the posts A second successful conversion for the visitors made the score Halifax 34-12 London London seemed like a different side entirely after these two try’s and pushed hard to score a third Polselli dropped the ball just inches away from the try line and Halifax were able to restore balance to the game This balance was taken advantage of by Halifax late in the game as Tangata made a massive break down the blindside of the field shrugging off two Broncos tacklers before eventually being brought down by Alex Walker Halifax then got the ball to the other side of the field effortlessly where Charlie Graham was able to score a try and put the icing on the cake for the home side cementing a solid & convincing victory FULL TIME: HALIFAX PANTHERS 40-12 LONDON BRONCOS B.C. moves to speed up energy projects amid growing demand and environmental concerns2 hours agoVideo2:02 Advocates, families call for coroner's inquest into deaths of Indigenous women, girl2 hours agoVideo2:44 Duty free shops fear Trump’s trade war will force them out of businessThe National |2 hours agoTrending NowVideo2:17 Video evidence, NHLer testimony raise questions in world junior sexual assault trialThe National |May 2Video4:45 Trump repeats 51st state taunt as Carney prepares for White House visitThe National |May 5Video11:28 It is a priority for CBC to create products that are accessible to all in Canada including people with visual Closed Captioning and Described Video is available for many CBC shows offered on CBC Gem High street lender says typical buyer will get £38,000 more “fire power” for their purchase Business Sign up for our email featuring expert insight and funding opportunities for entrepreneurs and SMEs I would like to be emailed about offers, event and updates from Evening Standard. Read our privacy notice Britain’s biggest mortgage lender has relaxed its lending “stress test” limits to make it easier for borrowers to raise more to buy their dream home Halifax said that from this week it is “making changes to our mortgage affordability calculations meaning many customers will be able to borrow more Typical customers may see an increase of around 13% in the maximum loan available The Lloyds owned lender gave as an example a couple with two children with a combined income of £75,000 could see the amount they can borrow increase by £38,000 a 2 year mortgage product and 25 year term product and communications director at brokers Trinity Financial said: “ This is a significant change from Halifax that will make it easier for people to borrow more money to get on the property ladder “The current tight mortgage affordability stress tests are a real issue meaning that many potential borrowers are being told they cannot afford mortgages when they probably can “Santander recently made similar affordability changes which means other lenders will probably ease their lending rules as well “There are lots of schemes helping first-time buyers and higher earners to get more generous mortgage loan sizes families struggle to borrow the amount they need “Many lenders want to issue more generous loan sizes but the affordability rules have made it difficult The new government has clearly changed something.” The move comes as a number of major lenders cut their leading rates below 4% again Today HCBC became the latest big name to rejoin the sub-4% club with a 3.99% remortgage rate a five year fix for premier customers only with a £999 fee Barclays became the first “big six” lender to cut the cost of some new fixed-rate deals to below 4% after similar announcements by some smaller players Titanic victim’s pocket watch set to fetch £50,000 at auction Thousands cheer on Grand National winner at Aintree Racegoers arrive at Aintree for ‘great day out’ at Grand National Meal2Deal: on a mission to make food poverty history The Co-operative Bank said it will be relaunching its mainstream and buy-to-let mortgage ranges tomorrow It said it would be reducing rates on new two- and three-year fixed deals for homebuyers by as much as 0.26 percentage points Prince Louis steals the show at VE Day parade as he keeps dad William looking sharp and mimics brother George Prince Louis steals show with sweet antics at VE parade Ukraine 'launches stunning Kursk offensive' in major blow for Putin ahead of Victory Day celebrations Ukraine 'launches stunning Kursk offensive' in blow for Putin VE Day 2025 fashion: best looks from the day VE Day 2025 fashion: Princess of Wales to Lady Victoria Starmer UK tourists face major travel shake-up as Dubai airport set to close David Beckham’s 50th birthday bash in London 'shut down' by council over noise complaints David Beckham’s 50th birthday bash 'shut down' over noise complaints Halifax have won their last six home meetings with London Broncos The capital sides' last victory at The Shay was 41-22 on 24 July BEN CROOKS needs one appearance to reach 250 for his career LOUIS JOUFFRET needs 16 points to reach 1,000 for his career ALEX WALKER needs two tries to reach 100 for his career