Chat with us, powered by LiveChat “Very Significant” Mortgage Cuts Announced in UK by Big Lenders
9th January 2024
5 minutes

“Very Significant” Mortgage Cuts Announced in UK by Big Lenders

Mortgage rates in the UK are beginning to plummet according to Sky News, as two household-name lenders have announced this morning “significant” cuts in mortgage rates in both the five-year and two-year fixed ends of the market.

couple mortgage rates UK

Two household-name lenders in the UK mortgage market have announced “significant” cuts to their mortgage rates this morning reported by Sky News, as Barclays has now brought their two-year fixed mortgage rate from 4.62% to 4.17%, while Santander has pledged to cut their standard residential fixed-rate mortgages by up to 0.82% as well as cutting their buy-to-let two- and five-year fixed mortgages by up to 0.56%.

Big names in the UK mortgage market cut rates and get competitive

Following the cuts announced by both HSBC and Halifax last week, which saw HSBC bringing their five-year fixed mortgage rate below 4% and Halifax announcing cuts of up to 0.92%, two further big names in the UK mortgage market have decided to cut their mortgage rates, as Barclays and Santander get competitive with their rates – with Barclays not only cut rates on 60% loan to value (LVT) mortgages but also 75% and 95% LTV mortgages.

Other changes announced by Santander include decreasing all of their new build exclusive rates by up to 0.56% which is undoubtedly good news for those in the market looking for an off-plan home or investment.

“This is a very significant move by Barclays. The best one we've seen in 2024 yet. To see two-year fixed deals edging this much closer to 4% is not something many would have predicted a few months ago. With their capacity to handle large business volumes, too, this is a serious shift in the market and other lenders are going to lose a lot of business to them unless they also fall in line.” Gareth Davies, Director at South Coast Mortgage Services.

The new year brings in lower mortgage rates

In addition to the four big names announcing cuts to their mortgage rates across a range of their products – with Halifax being renowned as the UK’s largest mortgage lender – other smaller lenders such as Scottish Widows and BM Solutions have also followed suit and cut their prices, fuelling further hope for buyers in 2024 that are in the market to purchase a home or investment.

“Regardless of the economic forecasts, lenders need to move money and the only way to do that is to offer competitive rates. It's good to see this happening so soon and we've already seen borrowers lining up their plans for the year ahead.” Imogen Sporle, Head of Property at Finanze.

With more mortgage cuts expected to come in the following days, the opportunity to buy a home or investment has now opened up for many who had been priced out – following the consecutive increases in both mortgage rates and the base rate throughout 2023 – as lenders will continue to compete for market share and fight to offer competitive rates on their products to attract buyers in 2024.

If you’ve been waiting for rates to drop, now is your chance

At Beech Holdings we have spoken with countless clients and investors over the last 12 months who have expressed frustrations at the mortgage market in the UK, therefore, the news that mortgage lenders are decreasing the cost of their products across the board is not only good news for our clients but also the UK property industry as a whole.

To learn more about the current mortgage rates in the UK and see if your situation has now changed, get in touch with our expert team or call directly at +44 (0) 161 791 4600 today.

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