UK Mortgage Rate Cuts by Lenders Spark Optimism for Property Market Rebound

Several UK mortgage lenders, including NatWest, First Direct, TSB, and others, have announced significant rate reductions, potentially driving a rebound in the sluggish property market. The average fixed mortgage rates have dropped, with some deals offering rates below 4 per cent.

Mortgage lenders in the UK are making significant rate cuts, sparking optimism for a potential rebound in the sluggish property market. NatWest, First Direct, TSB, and MPowered Mortgages have all announced rate reductions, following similar moves by HSBC, Halifax, and Gen H earlier in the year. Additionally, Lloyds Bank, Leeds Building Society, Bluestone Mortgages, Hodge, and LendInvest Mortgages have also implemented rate reductions.

According to Moneyfacts, the average five-year fixed mortgage rate across the market has dropped from 5.53 per cent to 5.46 per cent in just one day. Meanwhile, the average two-year fix has fallen from 5.92 per cent to 5.87 per cent. Starting tomorrow, there will be ten fixed rate deals on the market offering rates below 4 per cent, with the cheapest deals targeting those with at least 40 per cent equity in their home or a 40 per cent deposit. HSBC is offering existing customers a 3.87 per cent five-year fixed deal at 60 per cent loan-to-value, with a £999 fee. New HSBC customers can secure a 3.94 per cent rate. NatWest is also cutting rates by up to 0.42 percentage points across most of its fixed rate products, with reductions for first-time buyers, home movers, and those remortgaging. First Direct has announced rate cuts, including two deals below 4 per cent, one being a 10-year fix and the other a five-year fix - both at 60 per cent loan-to-value. TSB has focused on cutting two-year fixes, with reductions of up to 0.55 percentage points for first-time buyers. Rates now start at 4.54 per cent for those with the largest deposits.

The recent wave of mortgage rate cuts by UK lenders has sparked hope for a potential rebound in the property market. With multiple major lenders reducing rates, there is optimism for increased activity in the housing market.