Major lenders reduce residential and BTL rates as market repricing continues
Santander is cutting over 200 of its mortgage rates by up to 25 basis points (bps) across its residential and buy-to-let ranges on Tuesday, the latest in a series of repricing moves by high street lenders in recent weeks.
NatWest made more than 200 reductions to its new business range today, with prices falling by up to 24bps, though some existing customer rates have risen.
HSBC is also lowering rates across both its residential and buy-to-let products from tomorrow, though the bank does not provide brokers with advance notice of the scale of changes.
Last week, Nationwide Building Society and Barclays also cut rates, while Halifax moved in the opposite direction, raising prices on a number of products — a move brokers have attributed to volume management.
Among the largest reductions at Santander, a 90% loan-to-value two-year fixed for first-time buyers carrying a £999 fee and £250 cashback will fall by 25bps, from 5.14% to 4.89%. The fee-free equivalent will drop by the same margin, from 5.39% to 5.14%.
A 95% LTV 10-year fixed for home movers with no fee and £250 cashback will come down by 25 bps, from 5.95% to 5.7%. Santander's buy-to-let range will see reductions of between five and 13bps.
At NatWest, the sharpest cut applies to a two-year fixed buy-to-let remortgage at 75% LTV with no fee, falling by 24bps from 5.41% to 5.17%. Several buy-to-let purchase deals at the same LTV are being reduced by 22bps.
In the residential range, a two-year fixed purchase product at 95% LTV with no fee will drop by 21bps from 5.59% to 5.38%, while the five-year fixed equivalent falls by 19bps from 5.49% to 5.3%. First-time buyers taking a two-year fixed at 90% LTV with a £995 fee and £250 cashback will see a 16bps reduction, from 5.02% to 4.86%.
Monthly analysis from Moneyfacts found that rate increases by lenders in July fully reversed the fall in the average mortgage rate recorded during June, though the broader trend over the past week has been one of rate reductions.
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