Predicting a Christmas Miracle: Sub-4% Mortgage Rates on the Horizon?

Numerous lenders across the country have made significant cuts to mortgage rates in response to improved inflation data. As of last week, around 30 lenders are now offering fixed mortgages below 5.0%, a notable increase from the 13 at the start of October. Speculation is even beginning to mount that rates below 4.0% could his the market before Father Christmas is delivering presents to homes across Sussex.

HSBC has reduced rates for various mortgage options, covering residential and buy-to-let properties. These reductions, applicable to both new and existing customers, encompass two, three, and five-year fixed terms, with rates dropping below 5.0%. The adjustments cater to those looking remortgage, customers switching, first-time buyers, purchasers, and home movers, spanning Loan To Value (LTV) ratios from 60 to 90 per cent.

Barclays entered the fray by announcing a sub-5.0% two-year fixed remortgage product with up to 60 percent LTV at 4.98%, accompanied by a £999 fee.

Halifax also joined the trend, reducing mortgage rates by up to 0.46 percentage points. Notably, a five-year fix for borrowers with a 10 per cent deposit sees a reduction of 0.24 percentage points to 4.97%.

On the buy-to-let front, The Mortgage Works has launched some competitive products, including a sub-4.5% five-year fixed-rate purchase and remortgage product up to 55 per cent LTV with a three per cent fee, signalling a potential resurgence of the buy-to-let market.

The official Consumer Prices Index inflation figure dropping to 4.6% in the 12 months to October, down from 6.7% in September, has been met with positive responses right across the mortgage industry, with many anticipating further fixed-rate mortgage reductions in the near future.

Posted on: November 20, 2023, by :