UK Mortgage Market Update: Reduced Fixed-Rates and New Deals on the Horizon

The trusted finance data provider, Moneyfacts, has reported an overall decline in the nation’s average two- and five-year fixed mortgage rates. This is welcome news for prospective and current home buyers; the latest signs pointing towards these more favourable conditions in the UK mortgage marketplace are reduced fixed-rate mortgages. 

Several high-profile lenders have cut their selected fixed rates, bringing forth renewed opportunities for many. Some of the top financial institutions making these reductions include:

  • HSBC, which cut rates by up to 0.30%
  • Virgin Money, which reduced rates up to 0.25%
  • Halifax, with drops up to 0.12%
  • Nationwide offering up to 0.40% cuts
  • Santander trimming rates still further up to 0.20%
  • TSB with rate declines of up to 0.10%
  • Lloyds Bank which adjusted its five-year fixed mortgage rates up to 90% loan-to-value with deductions up to 0.12%

Even more significant decreases in fixed rates have been observed from Aldermore (up to 0.70%) and West Brom Building Society (up to 0.60%). This streak of reductions across the board is encouraging for those currently surveying the real estate market.

Adding to these developments, a few innovative and competitive mortgage deals have emerged from Leeds Building Society, with a three-year fixed mortgage offering a 95% loan-to-value ratio and priced at an enticing 5.99%. West Brom Building Society has also brought a comparable deal, priced slightly higher at 6.44%.

As is the nature of finance, this is not all one-sided. Certain lenders have chosen to up their standard variable rates this week. For example, Furness Building Society, Metro Bank, Digital Mortgages by Atom Bank and Marsden Building Society have increased theirs by 0.20%, 0.25%, 0.15% and 0.20% respectively.

We always advise our clients and friends to speak to an independent Mortgage Broker who can review the whole mortgage market and have access to deals not available on the high street. Furthermore, mortgage brokers can provide invaluable advice, such as when you should consider overpaying a mortgage if feasible.

Samantha Webb, owner of Property Webb, said, “It’s positive to see several lenders making fixed-rate reductions this week, and the speculation is that may well continue into the next couple of weeks. The dynamic landscape of the UK mortgage market can be a maze of trivia for first-time buyers, but getting the right advice and knowledge can still open the door to owning your own home.”

It would seem the UK mortgage market is undergoing a shift that may benefit many current and prospective homeowners, promising potential financial relief and opportunities for intelligent investment. Awareness of these changes and considering these tips is crucial to wise decisions in the ever-evolving property landscape.

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