Barclays, HSBC, NatWest, and others reprice in response to shifting funding costs
Several of the biggest mortgage lenders in the UK have announced rate reductions at pretty much the same time after a quiet period for repricing.
Barclays is cutting selected mortgage rates and launching a two-year tracker below 4%, effective from tomorrow, 30 April.
The high street lender is introducing a Premier two-year tracker at 3.96%, in line with Halifax’s leading product. Premier eligibility requires a Barclays current account and either £75,000 gross annual income or at least £100,000 in savings, eligible investments, or both with the bank. The bank is also launching a Premier five-year fix at 4.93% up to 80% LTV with no fee.
Existing Premier rates will also fall, including a two-year fix at 75% LTV to 4.71% and a five-year fix at 90% LTV to 4.94%, both with an £899 fee.
In remortgages, Barclays will launch a Premier two-year fix at 5.08% up to 80% LTV, while a five-year fix up to 60% LTV will be available at 4.80%, both with a £999 fee. Selected standard remortgage-only three- and five-year fixes with a £999 fee will be reduced by up to 0.13%.
Meanwhile, HSBC UK will reprice a range of mortgage rates, also from 30 April. The changes cover residential, remortgage, first-time buyer, home mover and buy-to-let products, with loan-to-value adjustments across several terms and product types.
NatWest is reducing rates by up to 0.19%, while TSB is cutting rates by up to 0.35% and Accord by up to 0.45%.
TSB’s largest reductions apply to new borrowers. Its two- and five-year fixed rates for house purchase will fall by as much as 0.35%, while equivalent remortgage products will be reduced by up to 0.20%.
“Swap rates have been pretty volatile recently, but many of the lenders have said they secured funding to cover them for a few weeks,” said Aaron Strutt (pictured right), product director at mortgage broker Trinity Financial.
“While it is great to see rates come down again, fixed rate price hikes over the coming weeks can’t be ruled out. When the cost of funding mortgages increases, the lenders typically do not wait long to pass those rises on to borrowers.
“Hopefully the Bank of England base rate will stay on hold tomorrow and this leads to mortgage funding costs easing.”
Strutt advised borrowers to consider securing a suitable deal while keeping the option to move to a cheaper rate before completion if pricing improves.
“The standard advice in uncertain economic times stands: secure a mortgage rate you think suits your circumstances or looks reasonable value for money as soon as you can, then try to switch to a cheaper deal with the lender before your mortgage is due to complete,” he said.
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