Banks Continue to Reduce Mortgage & Finance Interest Rates Despite BoE Increase

Amid greater competition for new business mortgage lenders continue to make reductions across their mortgage and finance products covering fixed and variable rates and including Buy-To-Let rates for investors. This is despite the Bank of England increasing the Bank Rate from 4% to 4.25% last week.

The nationwide building society has reduced rates across its fixed and tracker mortgage range by up to 0.45%; a five-year fix starts at 3.94% (60% LTV).

NatWest has reduced its buy-to-let fixed rates by up to 0.27%, with a five-year fix (75% LTV) starting at 4.62%.

HSBC has cut fixed rates, which at 80% LTV, now start at 4.24%.

Clydesdale Bank, part of Virgin Money, has cut fixed rates on a range of its mortgage deals by up to 0.6%, with a two-year fixed rate for re-mortgage customers starting at 4.74% (80% LTV).

Coventry BS has cut its buy-to-let fixed rates by up to 1% and residential rates by up to 0.2%; rates (five-year fix) start at 4.6%.

Steve Cox, chief commercial officer at Fleet Mortgages, commented: “Due to a combination of factors including a softening of swap rates and further movement within the sector, we’ve been able to reduce our fixed-rate pricing across the board by 0.2 percentage points.

“The Budget last week, and in particular the Office for Budget Responsibility’s inflation and interest rate forecasts, appear to have added a further layer of calm to market sentiment, with the belief that rates will now peak at a lower level than previously feared. It means we’ve been able to review our pricing and cut it accordingly.”

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