Lenders Reprice After Bank of England Rate Cut, Breaking into Sub-4% Mortgage Market
In the past week we have seen a flurry of lenders competing and repricing post Bank of England rate cut, with several lenders breaking into the sub-4% mortgage market. With the latest updates coming from Coventry, Halifax and Barclays making rate cuts and joining Nationwide in the sub-4% market.
Coventry Building Society has announced a significant reduction of up to 0.52% across their entire residential range, while Halifax has cut rates by up to 0.16% for first-time buyers and home movers.
Barclays have cut selected rates by up to 0.20% for purchases and up to 0.25% for remortgages. The lender is now offering the most competitive 5-year fixed rate at 4.83% to Barclays Premier customers, this deal is available for borrowers looking to purchase a property with at least a 40% deposit and comes with a £899 arrangement fee. Alternatively, they also offer slightly higher priced 5-year fixed rate to non-Premier customers also available for those with a 40% deposit and comes with a £899 product fee.
Representative Example of a Purchase:
- For a property purchase of £800,000 with a capital and interest mortgage of £480,000 payable over 25 years:
- Initial Rate: 3.83% for 5 years, then reverts to Barclay’s standard variable rate, currently 8.49%
- Payments: 60 payments of £2,493.44, followed by 240 payments of £3,621.56
- Total Amount Repaid: £1,019,021.80 (including the initial loan amount, interest, product fee, final repayment charge, and completion fee)
- Overall Cost for Comparison: 6.7% APRC representative
Which Lenders are offering a sub-4% mortgage?
After the recent repricing, Barclays, Halifax, HSBC, NatWest and Coventry have all joined Nationwide in offering sub-4% deals. One important point to note is that these products are all available for 5-year fixed rates with large deposits and may not be suitable for your circumstances.
How have other lenders reacted?
Elsewhere in the market, other lenders such as Virgin Money, Foundation Home Loans, April Mortgages, and TSB have also repriced their mortgage products. The Bank of England's base rate cut from 5.25% to 5.00% has injected new energy into the market, with several lenders already making adjustments and more expected to follow suit.
The Importance of Expert Guidance
Given the ever-changing market conditions, seeking the assistance of a mortgage consultant is more important than ever. With their expertise, you can navigate these fluctuations effectively and find the best possible mortgage options tailored to your needs.
Our experienced mortgage consultants are ready to assist you with personalised guidance every step of the way. For an initial consultation, speak with our experts or call us at 01628 564631. We're here to help you navigate your mortgage journey with informed advice and care.
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The information contained within was correct at the time of publication but is subject to change.
