August: All Eyes On Key Inflation Update Next Week
Halifax has cut rates on selected two, five and 10-year fixed rate residential mortgage deals by up to 0.71 percentage points following a glut of lenders, including NatWest, HSBC, First Direct and TSB, who have cut rates in recent days, writes Jo Thornhill.
The bank, which is the UK’s biggest mortgage lender, has cut rates across its range, including for first-time buyers, new build, shared equity and large loan mortgages. The new rates will be effective from Friday (11 August).
Halifax 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%), also with a £999 fee (80% LTV).
NatWest is cutting selected two and five-year fixed rates by up to 0.65 percentage points for new customers from tomorrow (11 August). It is 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, shared equity loan, help to buy remortgage deals and buy-to-let loans.
First Direct has cut its two, 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. There is a £995 fee.
Nick Mendes, mortgage technical manager at broker John Charcol, 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 next week (17 August). It has also said it is withdrawing its five-year fixed rates with a £1,495 fee for home purchase from this evening (10 August).
At the same time Virgin has cut fixed rates for purchase, through brokers, 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, with a £1,495 fee, is now at 5.44% (65% LTV).
Source: www.forbes.com
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