Mortgage Rate Cuts Signal a New Era for Borrowers

This week, major lenders like NatWest, HSBC, and Barclays have lowered their mortgage rates, with Coventry Building Society and Halifax joining in with similar reductions. Halifax also announced increased borrowing limits for first-time buyers.

These rate cuts are benefiting a wide range of borrowers, from first-time buyers with small deposits to those with more equity or looking to remortgage. For example, Barclays is now offering a five-year fixed rate at 3.95% for customers with up to 25% equity—previously, rates below 4% were only available to those with at least 40% equity.

There are also more deals under 4% available for those remortgaging, with Barclays offering five-year fixed rates at 3.88% and 3.93% for loans up to 60% loan-to-value (LTV), both with £999 fees.

Emma Jones, managing director at Whenthebanksaysno.co.uk, noted that this trend reflects a competitive market where lenders are vying for market share, making borrowers the clear winners. Brokers are particularly pleased to see remortgaging customers benefiting from these lower rates as well. Gabriel McKeown, head of macroeconomics at Sad Rabbit Investments, described this as the start of a new, more favourable era for borrowing.