HSBC, NatWest, and Metro Bank have announced further interest rate cuts to mortgage products today in what brokers have described as “fantastic news” for the market.
The rate reductions for all three lenders will come into effect from Tuesday, January 16.
Rates have been cut on HSBC’s residential mortgage range by 0.225 percent on average (between 0.05 percent and 0.4 percent).
An HSBC UK spokesperson said: “We’re here to support our customers and we remain committed to offering the best possible rates.
“That’s why we’re pleased to announce cuts to mortgage rates across our UK residential range for first-time buyers and home movers, as well as some reductions on our switcher range.”
They added: “We are offering cashback of between £250 and £1,000 on our first-time buyer and home movers ranges. This includes £750 and £1,000 cashback on many of our first-time buyer offers and up to £350 on our home mover ranges.
NatWest is cutting rates across its fixed rate ranges for purchases, remortgages, product transfers, buy-to-let and even green deals.
To name a few, interest rates on the bank’s purchase range will see reductions of up to 0.4ps and 0.36 bps for two and five-year deals. Rates will reduce by up to 0.35 ps and 0.65bps for two and five-year remortgage deals.
Meanwhile, first-time buyer rates will reduce by up to 40ps and 36bps on two and five-year fixed deals.
This marks the bank’s second price adjustment in January and means it has now joined the sub-four percent fixed deal lenders, which are gradually emerging in the market.
Metro Bank’s reductions include a headline rate of 4.99 percent for a two-year fixed rate switch product on up to 80 percent Loan To Value (LTV).
Ben Perks, managing director at Orchard Financial Advisers shared on platform Newspage: “It’s great to see another round of rate reduction from HSBC, all the more so ahead of this week’s inflation print.
“HSBC has made several cuts in quick succession so it shows a real appetite to lend and is fantastic news for the consumer and the wider property market. Let’s hope more lenders show this level of eagerness to lend. It’s always great to see a bit of healthy competition on rates.”
Richard Jennings CeMAP, founder and managing director at Richard Jennings Mortgage Services commented: “This is another terrific update on pricing from another of the big six lenders.
“These price cuts are certainly making their way through to the consumer, too.
“We’re definitely seeing optimism return to borrowers with both mover and remortgage enquiries increasing materially over the past couple of months.”
Mr Jennings continued: “Things are really looking to be on the up and if we have a positive inflation print they could improve further. Conversely, for product transfers, it’s creating some rework due to our rate watch promise to clients.”
Sofia Jones, mortgage and insurance adviser at Penny House added: “It’s great to see Metro catching up with other lenders. Product transfer rates for existing clients have dropped from 6.19 percent to 4.79 percent.
“This in itself will save one of my clients £35,200 over two years in interest alone. The rate cuts we’re seeing now are having a hugely positive impact on people’s finances.”
