The recent easing of mortgage rates shows no signs of slowing, with both HSBC and NatWest announcing a series of rate cuts just hours apart, while brokers predicted the rest of the Big Six could soon follow suit.
This morning HSBC announced that it will be cutting its mortgage rates on a number of its most popular products from Tuesday September 5th.
Just hours later, NatWest followed suit with its own cuts of up to 0.35 percentage points for fixed rate loans and 0.55 percentage points for trackers.
The UK’s biggest lenders have now cut mortgage rates for six weeks after they soared to record highs in mid-July on fears the Bank of England would raise its own interest rates to levels not seen this century.
Lewis Shaw, owner and mortgage expert at Shaw Financial Services, said the other four members of the Big Six – Lloyds Banking Group, Nationwide, Santander and Barclays – would make further cuts.
“With NatWest hot on the heels of HSBC announcing new interest rate cuts, there is every chance we will see the remaining big four come to the party this week too,” he said.
Nationwide cut its tariffs last Thursday, while the other three had already done so in the previous two weeks. But Steven Morris, consulting director at Advantage Financial Solutions Ltd., said Halifax in particular was unlikely to shy away from a second cut in quick succession.
“While Lloyds Banking Group reassessed just last week, it is only a matter of time before its subdivisions like Halifax do so again to keep up with the Joneses,” he said.
Justin Moy, managing director of Essex-based EHF Mortgages, expressed a similar opinion.
“I’m sure others will follow the lead of HSBC and NatWest later this week,” he said.
Shaw added that alongside the Bank of England’s lower rate expectations, lenders were likely to cut rates because they were experiencing low demand.
“It appears that lenders are struggling to attract new business and the rate hike is the only tool they have to resort to,” he said.
Last week HSBC launched its first 40-year mortgages.
https://www.standard.co.uk/business/natwest-hsbc-cut-mortgage-interest-rates-bank-of-england-halifax-lloyds-barclays-nationwide-b1104752.html NatWest and HSBC are cutting mortgage rates and other top lenders could follow