NatWest, Barclays and TSB have unveiled further mortgage rate cuts, in what brokers have described as “positive news” given that swap rates, which are used to price fixed-rate mortgages, have climbed in recent days. They encouraged borrowers to capitalise on the reductions, “as you never know what may change or how quickly” amid continued market volatility driven by the conflict in the Middle East.
On Wednesday, NatWest announced cuts of up to 0.19%, Barclays reductions of up to 0.18%, while TSB slashed rates by as much as 0.35%. While Barclays did raise selected rates, brokers suggested this was more a matter of managing business volumes. This week’s reductions follow a wave of major lenders cutting their rates the previous week.
Justin Moy, managing director at Chelmsford-based EHF Mortgages, described the development as “positive” in light of swap rates having nudged upwards slightly this week.
He said: “People need to take advantage of this improved pricing, as you never know what may change or how quickly.”
Omer Mehmet, managing director at Welling-based Trinity Finance, agreed: “It’s encouraging to see lenders continue to cut rates, which suggests they’re hungry for business after a far quieter March and April than usual due to the war. But borrowers should not believe that the only way for rates now is down, as markets can move very quickly and rates could be rising again before you know it.”
Andrew Montlake, chief executive at London-based Coreco, also warned that the market landscape remained unpredictable.
He said: “It’s great to see these cuts today, but there is still a lot of uncertainty among lenders and rates could rise again very quickly subject to events in the Middle East. But for now, more cuts will be welcomed by borrowers.”
Emma Jones, managing director at Runcorn-based Whenthebanksaysno.co.uk, urged borrowers to remain nimble and prepared to act swiftly, given the remarkably short shelf-life of mortgage deals in recent times.
She said: “A week or two ago, it was revealed that the average shelf-life of a mortgage was just eight days, which shows how important it is for people to act when good rates become available. Competitive rates can come and go in the blink of an eye.”
Matthew Fleming-Duffy, founder of Harbour Home Finance, said: “For borrowers, this is a reminder that the ‘best rate’ is a moving target. These constant shifts highlight why good advice and timing are key, because the cheapest deal today may not be there tomorrow.”