LENDERS are now cutting their mortgage rates with growing momentum, brokers have claimed, as TSB and Santander become the latest high street names to announce reductions, with the former cutting selected rates by up to 0.8%.
While brokers cautioned the situation remains fragile and said “the News at Ten could still deliver another setback”, they agreed that “it’s starting to feel like things are moving the right way at last”.
From Friday 24 April, TSB has reduced selected residential purchase and remortgage rates by up to 0.6% and rates on selected Buy to Let and Portfolio Buy to Let products by up to 0.8%.
Meanwhile, Santander has announced that it is reducing selected new business first-time buyer (FTB), home mover and remortgage fixed rates by up to 0.25%. In its product transfer range, it’s reducing certain residential fixed rates by up to 0.08%.
In recent days, a growing number of major lenders, including HSBC, Barclays and Virgin Money, have cut their rates and brokers, against this backdrop, have urged borrowers to seize the moment.
Opportunity
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said: “Lenders are clearly looking to encourage borrowers and, based on this evidence, feel that the outlook is better than just a few weeks ago.
“Swap rates haven’t improved significantly, suggesting that lender confidence is just as important as pricing.
“The good news here is that both property buyers and remortgage borrowers see a benefit, and so they may want to grab the opportunity while they can.
“Though TSB have been a bit expensive recently, these rate cuts are a significant shift for the lender as muted confidence returns to the mortgage market.”
Ken James, Director at London-based Contractor Mortgage Services, also welcomed the cuts but said the market remains “hypersensitive”.
He said: “With TSB and Santander now joining Virgin Money, Barclays, Halifax and a growing list of other lenders trimming mortgage rates, the question is are we finally edging out of the worst of the disruption triggered by the Middle East conflict?
“On the surface, the momentum looks encouraging. After far too much swap rate volatility and a pricing whiplash from lenders, any downward movement feels like a welcome shift.
“But let’s not pretend the sector is breathing easy. If we blink at the wrong moment, the News at Ten could still deliver another setback. Markets remain hypersensitive, and confidence is still as fragile as the peace talks.”
Twitchy
Harry Goodliffe, Director at Winchester-based HTG Mortgages, was also cautious, saying “it still feels a bit early to call the latest cuts a proper trend”.
He continued: “Things are improving as the market adjusts to the tentative stability in the Middle East, but it’s twitchy and could turn again very quickly, so I wouldn’t be reading this as the start of a sustained fall in borrowing costs just yet.”
Richard Davidson, Mortgage Advisor at onlinemortgageadvisor.co.uk, was cautiously upbeat: “These are confident moves that suggest lenders are ready to compete for business again.
“However, it’s not yet clear whether this pace of cuts will continue and take us back to the lows we saw in February. But with all eyes on the international situation, it’s starting to feel like things are moving the right way at last”
Ben Perks, Managing Director at Stourbridge-based Orchard Financial Advisers, urged borrowers to act fast or risk losing out: “TSB have made some chunky cuts to their rates and follow a few of the high street lenders to move rates downward this week, which is an encouraging time for borrowers.
“My message would be to act fast and secure rates while you can. After all, we’re only one Trump Truth Social post away from the next hike.”
Material
Nouran Moustafa, Practice Principal and IFA at Roxton Wealth, described the TSB cuts as “material” and a sign that competition is returning more meaningfully across the high street.
She said: “While some lenders have clearly priced tactically in recent months, reductions of up to 0.60% are material and will absolutely catch the attention of borrowers.
“It does not remove affordability pressures overnight, but it is a step in the right direction. What the property market needs now is not just isolated cuts, but sustained momentum, consistency and a clear willingness from lenders to support activity.
“Against the backdrop of Iran-driven volatility in oil and inflation expectations, cuts like this feel even more meaningful because they show some lenders are still willing to compete.”
David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth, added: “One swallow doesn’t make a summer, but TSB cutting seems to be part of a broader trend of lenders quietly admitting that their rates have been eye-wateringly high.”
