A series of lenders have announced rate cuts, including Halifax and HSBC, with brokers predicting more reductions are on the way.
Halifax was one of the first lenders to reduce rates in the new year, with its remortgage product dropping to 4.68 per cent for a fixed 2-year £999 fee up to 60 per cent loan to value.
Self Employed Mortgage Hub founder, Graham Cox, said: “Halifax lowering rates by up to 0.92 per cent is a reflection that they were far from being the cheapest at the end of last year.
“With the decks cleared, they’re ready to take on new cases and get some early sales in, so have slashed rates.
“Other lenders will follow soon no doubt; competition in this slow market is fierce.”
Additionally, head of Finanze property, Imogen Sporle, said: “As we suspected, the New Year will bring new opportunities and a new impetus for lenders to take a lead in stimulating business.”
She added that, regardless of the economic forecasts, lenders need to “move money” and that the “only way to do that” is to offer competitive rates.
Sporle added it was good to see this happening so soon and that the industry has already seen borrowers lining up their plans for the year ahead.
A similar sentiment was shared by Charwin Private Clients director, Ranald Mitchell, who commented: “An unprecedented rate war is well under way and 2024 will see some seismic moves in rates compared with 2023.
“With net mortgage lending predicted to be lower than last year, mortgage providers will be pulling out all the stops, not just to acquire new business, but also to protect their existing mortgage customer base.”
HSBC
Mitchell’s prediction is already starting to come true with HSBC announcing changes to its mortgage products which will take effect from tomorrow (January 4).
The lender announced these changes would encompass its residential and buy-to-let mortgage product range and would include decreasing its two, three, and five year fixed fee saver products.
L&C Mortgages associate director, David Hollingworth, stated: “These cuts are just the latest salvo in an increasingly fast-moving market.
“These rates are offering some of the lowest rates since the spike in rates last summer.
“Although borrowers coming to the end of their current fixed rate this year will still be looking at a rise in payments, these new lower rates will at least take some of the sting out of the inevitable rise.”
The major lenders were not alone in these announcements as Bluestone Mortgages also announced a series of rate reductions.
The lender decreased rates by up to 23 basis points across it's two, three, and five-year range with rates now starting from 6.8 per cent for a five-year fixed rate clear product at 70 per cent.
tom.dunstan@ft.com
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