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"Rate reductions are seriously picking up pace" as Barclays and TSB latest lenders to announce cuts

Journalist: Justin Moy, Contributing Editor

ended 25. July 2024

Both Barclays and TSB have today announced further cuts to their fixed rate mortgage deals, covering the majority of residential mortgage options (details in screengrab). Newspage asked brokers for their thoughts on this continued price shift in the market, and whether it signals lenders believe a base rate cut is looming on the financial horizon, potentially next week. Their views are below.

 

 

7 responses from the Newspage community

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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Further rate cuts from big lenders are a major boost to borrowers and are showing the Bank of England how it’s done. The competition for mortgage applications is heating up and, if a base rate cut comes in August, the market could be cooking on all cylinders.
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Andrew Montlake
Managing Director at Coreco
It’s life by a thousand cuts for the mortgage market. Rarely a day goes by without a number of lenders shaving their rates further. Nationwide going sub-4% this week was a symbolic moment and more lenders are likely to follow suit. Lenders seem to be pricing in the fact that a base rate cut is coming very soon.
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Hannah Bashford
Director at Model Financial Solutions
Rate reductions are seriously picking up pace with multiple lenders adjusting their offerings on a daily basis. It’s only a matter of time before we see more products under that all-important 4%. More mortgages going sub-4% has the potential to supercharge demand during the rest of 2024.
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Rohit Kohli
Director at The Mortgage Stop
These reductions will always be welcome news, but we need lenders to do more at higher loan-to-value levels to help first-time buyers. Lenders are focusing on those with higher equity and are still being cautious when it comes to borrowers with smaller deposits. First-time buyers need to be front of mind to get the property market moving.
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Justin Moy
Managing Director at EHF Mortgages
These rate cuts are the ideal tonic for borrowers, and will only give confidence to the economy as a whole. With more rates moving towards that magic sub-4%, borrowers will not only benefit financially, but it will encourage the property market to grow and improve, giving everyone that important psychological lift. Sentiment in the mortgage and property market is everything.
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Dariusz Karpowicz
Director at Albion Financial Advice
Another positive news from major lenders with yet another series of rate decreases. The mood and feel of the mortgage market are improving every day. Will the Bank of England follow suit and decrease the base rate during the next vote? It is now looking very likely and much anticipated. Let's hope these cuts continue to bring some much-needed relief to borrowers and keep the momentum going in the right direction.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
The mortgage market is turning up the heat, and it’s fantastic news for everyone. With nearly daily price cuts, this trend is set to revive a market that has spent a few years in the cold. The once sluggish landscape is now full of potential and excitement. With the rate of house price growth having dropped off, homeownership and the costs of funds are becoming more attainable. Whether you're a first-time buyer or looking to upgrade, current market conditions are ripe for picking. Don't miss out. It's time for action.