Wednesday, February 28, 2024
Finance

Barclays and Santander announce rate cuts

Barclays

Barclays and Santander are the latest to cut rates, following HSBC and Halifax last week

Two major mortgage lenders have revealed “very significant” mortgage rate reductions, in what one of the UK’s leading mortgage brokers has called a “turning point” for households who have faced years of soaring bills.

Barclays and Santander are the latest to cut rates, following HSBC and Halifax last week.

From Wednesday, Barclays has said it is cutting rates by up to 0.5% and launching a two-year fixed mortgage at 4.17% for anyone with a 60% loan to value, down from 4.62%, with a fee of £899.

Santander will also cut rates tomorrow bringing some mortgage deals down to below 4%.

While HSBC’s cuts were notable for bringing rates down below 4%, Barclays says the two-year fixed rate mortgage will apply to anyone buying a new home and not remortgaging for an existing one.

Other cuts will apply to 75% LTVs (loan to value ratios involving a 25% deposit), which will see rates decline from 4.7% to 4.2% and 95% mortgages having rates slates from 5.8% to 5.5%.

Santander will launch a five-year fixed rate loan at 3.89% with a £999 fee for those remortgaging and 3.94% for people buying for the first time with a 40% deposit.

Other changes by Santander include a cut in standard residential fixed rate mortgages by up to 0.82% for new customers and all new build exclusive rates cut by up to 0.56%.

All large loan fixed rates will drop by 0.25% and BTL and five-year fixed rates will go down by to 0.56%. BTL three-year fixed rates will be withdrawn.

The BoE had reported that interest rates on mortgages, loans and savings had been at their highest level for many years, with the UK’s base interest rate being hiked 14 times over the past two years.

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