Good News For Mortgage Borrowers Pre General Election

Borrowers have been handed a boost with many lenders reducing their rate offerings over the past week.

HSBC and Halifax have introduced the most expansive reductions, with rate decreases across all purchase, remortgage and existing customer ranges. Halifax purchase rates have reduced by up to 0.19%, with remortgage and existing customer rates all reducing by up to 0.13%

Elsewhere, NatWest and Virgin Money have reduced purchase and product transfer rates by similar amounts, with Barclays also reducing selected purchase products at a variety of loan to value brackets.

Coventry have reduced all BTL products, with residential reductions on 2, 3 and 5 year Fixed rate options up to 85% loan to value.

Santander announced reductions of up to 0.16% for new business customers on Monday, with Accord reducing all BTL products on Monday and following up with a number or residential reductions on Tuesday.

This will increase hopes of a Bank of England rate reduction at the next meeting in August, with a 3 vote swing needed in order to see the first cut since March 2020. The last Bank of England meeting in June saw a vote of 7 to 2 in favour of maintaining the rate at 5.25%.

If August comes too soon to see a minimum of 5 votes in favour of a reduction, expectation will likely be for cut at the following meeting in September.