HSBC, Santander and TSB make major mortgage change – ‘significant shift’ (Image: Getty)
Several major mortgage lenders have announced new rate cuts as the market adjusts to the ongoing conflict in the Middle East. TSB, Santander, HSBC, and first direct are the latest high street names to reduce rates, some by up to 0.8%.
Brokers have cautioned that the situation remains fragile, but have agreed that “it’s starting to feel like things are moving the right way at last”. From Friday, April 24, TSB will reduce 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%. Santander has announced plans to reduce selected new 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%.
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Santander has announced plans to cut rates by up to 0.25% (Image: Getty)
HSBC UK reduced rates across its first-time buyers, home-movers, and buy-to-let mortgage range on Thursday, April 23, with rate reductions of up to 0.25 percentage points.
Online bank first direct has also lowered rates across dozens of two and five-year fixed mortgage products, with cuts of up to 0.38 percentage points today.
Liam O’Hara, head of mortgages at first direct, said: “We are committed to supporting our customers on their house purchase journey and continue to review our pricing regularly to ensure the best value we can for all our customers.”
Brokers have described the growing “momentum” as encouraging for borrowers, who have faced a raft of interest rate hikes recently due to the US-Iran war destabilising markets. However, Brits are warned they’re not quite out of the woods yet.
Describing the market as “hypersensitive”, Ken James, director at London-
“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.”
Harry Goodliffe, director at Winches
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.”
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Richard Davidson, mortgage advisor at onlinemortgageadvis
“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”
Justin Moy, managing director at Chelmsford-based
“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.”