TWO more high street lenders have announced they are cutting rates, with the Nationwide and Halifax following in the footsteps of TSB, Santander, Barclays, HSBC and other major names to reprice downward this week.
But with tensions in the Middle East rising again, brokers said “those now looking through the shop window for a new mortgage deal may want to consider jumping in, just in case”.
Nationwide has this afternoon announced that, from tomorrow, Friday 24 April, it is reducing selected fixed rates by up to 0.25%. This includes rates across its First Time Buyer, Home Mover and Existing Customers Moving Home ranges.
Meanwhile, the Halifax has announced rate decreases of up to 0.15% on fixed rate products across its Homemover and First Time Buyer ranges. Earlier today the TSB announced it was cutting residential rates by up to 0.6%.
Window of opportunity
Riz Malik, Independent Financial Adviser at Southend-on-Sea-based R3 Wealth, said: “Lenders are reacting to more favourable market pricing and are now passing it onto their customers. It is very clear that lenders want to lend, but we are not out of the woods yet.
“These cuts could be a short window of opportunity, especially if the ceasefire doesn’t hold. But either way they are a welcome relief to a mortgage market that is still recovering from a shock that came out of nowhere.”
Dariusz Karpowicz, Director at Doncaster-based Albion Financial Advice, also said borrowers may want to act: “Nationwide stepping in with cuts up to 0.25% from Friday is exactly the nudge this market needed.
“The catch? The Middle East situation is far from settled and funding costs could bounce back within days. If you are remortgaging or buying, get your application in now.”
Timely cuts
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, described the cuts as “decent” and “timely” and also urged people to grab these rates while they can.
He said: “Are we out of the troubles? Not yet. There is still much that can happen that may turn these rate cuts upside down, so those now looking through the shop window for a new mortgage deal may want to consider jumping in, just in case.”
Babek Ismayil, CEO at homebuying platform OneDome, said the stasis in the property market that is clearly worrying lenders offers a strong buying opportunity for those seeking to get onto the ladder.
He said: “The uncertainty resulting from the war has created a strong environment for buyers to negotiate hard with sellers and snap up property at a much reduced price.
“People need to remember that securing a competitive price for a property can often mitigate the impact of higher mortgage rates, which they can remortgage off in the years ahead anyway.”
