Hear ye, hear ye!
The mortgage battlefield is ablaze as lenders pull out their big guns, slashing rates to below 5% for the first time since June.
The Mortgage Works, a division of Nationwide Building Society, has fired the first shot with a five-year fixed-rate deal at 4.99%. It's a buy-to-let deal, not a standard residential mortgage, but it's a significant move nonetheless.
This rate reduction is a welcome sight for borrowers who've been on tenterhooks, worried about the end of their current deal, and for potential homebuyers who've been watching from the wings. The sight of a 4 on the starting line of a rate could be just the stimulus the market needs to boost borrower confidence.
It's not just The Mortgage Works making bold moves. Halifax has announced reductions of up to 0.5 percentage points on selected fixed deals. From Friday, they'll be offering five-year fixed deals at a competitive 5.15%.
The Mortgage Works has also cut rates by up to 0.5 percentage points, and Coventry Building Society is set to follow suit. These moves come hot on the heels of cuts by other high street players like Nationwide and Santander.
The average rate on a new fixed-rate deal for five years is now 6.14%, according to Moneyfacts. However, best-buy deals are considerably cheaper, with the cheapest five-year fix on Thursday priced at 5.12%.
Mortgage costs had been on the rise for months, but UK lenders have been reducing their rates since late July following the news that UK inflation fell more than expected in June. However, a potential Bank of England rate rise this week could slow the rate reduction momentum.
Despite the uncertainty, the return of rates under the 5% mark is a beacon of hope for borrowers. The mortgage war is well and truly underway, and it's an exciting time for anyone looking to secure a new deal or step onto the property ladder.
So, grab your helmet and join the fray – there's never been a better time to dive into the mortgage battleground!
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