BARCLAYS and Skipton BS are the latest lenders to announce mortgage rate cuts today, as competition starts to heat up on the high street, with rates going as low as 4.04% with no fee and 3.91% with a £1999 product fee. Following the weekend’s GP, brokers said “the next race among lenders is for a place on the lowest rate podium”.
Michelle Lawson, Director at Lawson Financial, said: “These are some summer sizzler rate cuts from Barclays. They make them one of the most competitive lenders in the market right now. The fact that Skipton’s rates have also been lowered is a sign of improving market confidence and the growing expectation of rate cuts this year, potentially next month.
“With two big lenders like this making their move, we should expect more to follow in the days ahead. The weather’s heating up this week and so is competition in the morgage market.”
Competition is heating up
Stephen Perkins, Managing Director at Yellow Brick Mortgages, added: “Following the British Grand Prix weekend, the next race among lenders is for a place on the lowest rate podium. Competition is heating up and those lenders on the grid are adapting their strategies. These latest rate reductions are welcome news to borrowers and the property market. If this continues, it could be an exciting race that leaves all borrowers as a winner.”
Ken James, Director at Contractor Mortgage Services, said: “There’s a rate cut rumble right now. As more lenders start to make reductions, borrowers will start to focus on finding added value beyond headline pricing, such as looser affordability checks, more flexible criteria and higher loan-to-values. It’s not just about rates anymore. The mortgage market’s getting creative and competitive.”
Adam Stiles, Managing Director at Helix Financial Partners, said people should “secure a rate as early as possible and then make sure you — or your broker if you have one — keep an eye on rates with that lender so you can follow future rate drops down up until completion. In the current market, you need your eyes wide open”.
Summer treat ahead?
Pete Mugleston, Managing Director at onlinemortgageadvisor.co.uk, commented: “With a heatwave predicted for the weekend, the mortgage market is now starting to heat up again. Barclays and Skipton reducing rates is great news for borrowers and reflects the drop in swap rates we’ve seen recently. More lenders might follow suit in the coming weeks, but borrowers will be hoping the Bank of England gives them a summer treat at the next Monetary Policy Committee meeting and lowers the base rate.”
Dariusz Karpowicz, Director at Albion Financial Advice, also suggested lenders may be pre-empting Threadneedle Street: “Barclays and Skipton have fired the starting gun on what’s shaping up to be a proper rate-cutting race, with both lenders refusing to wait for the Bank of England to make the first move. This summer’s sizzling competition has brought more mortgages tumbling below the 4% barrier, giving borrowers genuine cause for optimism.”
Photo by Tim Hüfner on Unsplash
