Barclays, HSBC and NatWest have cut mortgage rates

• HSBC has announced a wave of interest rate cuts from tomorrow
• Barclays has cut fixed rates for homebuyers, including the best new purchases
• NatWest has cut rates for people refinancing – including some best buys

Three major lenders have cut mortgage rates, which could mark the start of a downward shift in home loan pricing.

Today, Barclays cut rates on a number of mortgage deals aimed at homebuyers, following NatWest’s cuts on Friday.

HSBC also announced that it will cut rates on its home and buy-to-let mortgage products from tomorrow.

These rapid announcements of interest rate cuts by three major banks suggest that other lenders will follow suit and adjust their prices downwards.

Fixed mortgage rates have been slowly rising since February, but attention is now turning to when the Bank of England will start cutting rates.

Last week, the Bank of England again chose to keep the base interest rate at 5.25 percent.

However, with inflation now back at the central bank’s target of 2 percent and CPI inflation expected to fall to slightly below the 2 percent target next month, this could pave the way for the central bank to raise interest rates to decrease.

Markets are currently pricing in one or two rate cuts in 2024, with the first coming in August or September.

If the predictions are correct, this could mean that the base interest rate will fall from 5.25 percent to 4.75 percent at the end of 2024.

Nicholas Mendes, mortgage technical manager at broker John Charcol, said: ‘We can expect lenders to significantly escalate their strategies in the coming weeks.

‘Following last week’s decision by the Monetary Policy Committee (MPC) and with key wage data and general election results on the horizon, markets are likely to expect further cuts in the bank rate.

‘On Friday, the five-year cash rate stood at 3.82 percent, indicating that lenders certainly have room to reduce the five-year fixed rate even further from their current levels.

“Given that lenders’ most recent repricings saw increases, there is now potential for reductions.

‘We have seen some movement, but this latest repricing from HSBC will certainly stimulate the market.

“The timing of price revision by competitors is likely to be from next week, given the upcoming announcements.”

Which mortgage interest rates have changed?

Although we’ll have to wait until tomorrow to find out what HSBC’s latest price review is, Barclays and NatWest are now offering some of the cheapest deals on the market.

Barclays lowest five-year solution, aimed at those buying with at least a 40 per cent deposit, charges 4.23 per cent with an £899 fee. This is a new best buy.

The average five-year fix is ​​currently 5.53 percent. This means that someone who needs a £200,000 mortgage and can secure Barclays’ lowest deal over 25 years will end up paying £1,081 a month, compared to the market average of £1,232.

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Those who buy with a 25 per cent deposit can secure a 4.38 per cent rate with Barclays for a fee of £899.

For a buyer with a deposit of 40 per cent or more, Barclays now also has the lowest two-year fix: 4.68 per cent with an £899 fee.

Those who buy with a 25 percent deposit can get a two-year fix at a rate of 4.75 percent from Barlclays, which is also a best buy.

Simon Bridgland, a mortgage broker at Release Freedom, told news agency Newspage: ‘Barclays has launched a range of blistering fixed interest rates to match the arrival of the much-anticipated summer sunshine.

“This week, more lenders will follow suit, with their rates melting away in the heat. It looks like things are going to heat up not only in our skies, but also in mortgage rates.

“Expect to see more lower fixed rates to appear in the coming days.”

Meanwhile, NatWest has focused on those refinancing their mortgages. For someone with at least a 40 percent equity interest in their home, NatWest offers rates from 4.36 percent – ​​lower than any other lender.

The lowest two-year fixed interest rate, intended for people who refinance with at least 40 percent equity in their home, is 4.82 percent – ​​the lowest rate on the market together with Santander.