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"It's an election-day bonanza" as Barclays and HSBC announce rate cuts as country heads to the polls

Journalist: Riz Malik

ended 04. July 2024

Barclays and HSBC have both announced rate cuts from tomorrow. Key product changes from Barclays highlighted below. HSBC's rates will be published tomorrow. Newspage asked brokers for their views on whether this shows lender confidence in the post-election landscape, bottom.

  • Reduced - 4.98% EMC Reward 2 Year Fixed £0 product fee, 60% LTV, Min loan £5k, Max loan £2m, will decrease to 4.90%
  • Reduced - 4.90% EMC Reward 2 Year Fixed £999 product fee, 75% LTV, Min loan £5k, Max loan £2m, will decrease to 4.75%
  • Reduced - 4.95% EMC Reward 5 Year Fixed £0 product fee, 75% LTV, Min loan £5k, Max loan £2m, will decrease to 4.68%.

12 responses from the Newspage community

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Riz Malik
Independent Financial Adviser at R3 Wealth
It's an election-day bonanza as Barclays makes some considerable cuts and HSBC announces reductions, too. Things are looking better for the UK mortgage market and with only a few weeks until the next base rate decision, borrowers could be hanging out the bunting this time next month.
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Bob Singh
Founder at Chess Mortgages
It’s not just the Tories who are going down tomorrow: mortgage rates are too. Whilst some may think Labour are hard work, it seems their job is being made easier by a raft of rate cuts being announced this week. The markets are factoring in the next base rate cut already so things are looking rosy for Labour. Rosy red rose, of course.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Two more high street banks are throwing their hat into the ring for cheapest mortgage rates, hoping borrowers vote for them as their lender of choice. HSBC and Barclays both announcing rate reductions for Friday following Santander, Natwest and Halifax earlier in the week, is starting to give the mortgage market real momentum. The fight for the lowest rate will likely be a closer race than today's General Election.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Whatever happens as the country goes to the polls, borrowers around the country have been given another boost with two more major lenders announcing cuts. The General Election outcome remains unclear but what is clear is that the mortgage landscape is looking a lot more positive than just a month ago. All of these cuts are causing a chain reaction across other lenders.
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Rohit Kohli
Director at The Mortgage Stop
This is yet more welcome news to borrowers from both Barclays and HSBC. With thousands of homeowners due to come out of their fixed rates over the summer as their ultra-low 5-year rates secured in 2019 end, this will bring some relief to those stressed about how they were going to manage the increase. They will still face a jump in monthly payments but for someone with a mortgage of £250,000 and 25 years left to pay who has at least 25% equity in their home then the reductions over the previous couple of weeks have the potential to save them around £700 a year.
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James Carter
Principal at Independent James
Whilst not earth-shattering reductions, these reductions will add a little more confidence to the market. Combined with a potentially more stable Government from tomorrow, things could be looking far brighter for borrowers by the end of the week.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
This is unlikely to be election-driven, and more about lenders competing as several others have already announced reductions this week already. Either way, it is good news for borrowers. Long may it continue.
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Ben Perks
Managing Director at Orchard Financial Advisers
Barclays have given borrowers a boost by joining the growing club of lenders reducing their rates. Hopefully their servicing will cope with an increase in demand. There is still a slight hint of caution from lenders ahead of the election result, as if it goes as planned markets will remain stable and bigger cuts from lenders could be on the horizon. Then it is all eyes on the Bank of England to drop the base rate.
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Justin Moy
Managing Director at EHF Mortgages
Inevitably, this is good news for mortgage borrowers. It's important to see lenders having the confidence to drop rates irrespective of who the next resident of 10 Downing Street will be. As the markets continue to price in improvements to the economy, falling inflation and an inevitable base rate cut, this will only help bring some cheer to all voters.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
HSBC and Barclays have launched an all-out assault on interest rates, declaring a full-scale financial war that borrowers are sure to rally behind. This isn't just another rate cut: it's a declaration of war that will hopefully rage on for the foreseeable. Both lenders are sharpening their strategies, ready to lead the charge and outflank the competition. While battles are seldom cheered, many homebuyers and mortgage holders will be hoping this one escalates into a full-blown campaign, bringing significant benefits in its wake.
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Andrew Montlake
Managing Director at Coreco
Whoever is popping the champagne corks in Number 10 tomorrow, borrowers will be feeling a lot more positive, too. Though rates will never return to their previous lows, they are getting lower, and that is a reason to celebrate.
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Graham Cox
Director at Bridging Hub
Uk swap rates have fallen steadily over the last month, in expectation of a base rate cut on August 1st when the Bank of England MPC next meet. In turn, this has allowed mortgage lenders to reduce their rates. No doubt they are also motivated by a slowing housing market, due to the General Election and a fast approaching holiday season.