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Halifax and NatWest lower mortgage rates: "The outlook for the second half of the year is much brighter"

Journalist: Justin Moy, Contributing Editor

ended 01. July 2024

Halifax and NatWest have today announced key rate cuts for borrowers, reflecting recent improvements to Swap rates as markets increasingly price in a cut to the base rate. Newspage asked brokers for their views, below.

 

11 responses from the Newspage community

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Riz Malik
Independent Financial Adviser at R3 Wealth
Lenders are lending once again, and with real elan. As market conditions continue to improve they are doing their best to help stimulate the market through rate improvements, criteria tweaks or both. The second half of the year will be much better for the UK property market regardless of when rate cuts come.
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Craig Fish
Director at Lodestone Mortgages
Unlike goals from the England team, the rate reductions are coming thick and fast, which is great news for borrowers. As the expected base rate cut looms ever closer, expect swap rates to drop further and more lenders to reduce rates accordingly. Much like the goal that secured the win last night, these rate reductions are better late than never. The second half of the year looks set to be a busy one.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
It is always a great start to the week when it begins with the UK's largest mortgage lender announcing rate reductions, which will help many borrowers access the finance they require at a more affordable price point. NatWest and Halifax have joined the party, but there are still many seats at the table for other lenders.
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Ken James
Director at Contractor Mortgage Services
After an evening of footballing madness on Sunday, Monday has kicked off with a bang. NatWest are making further cuts, showing they have plenty left in the tank, while Halifax have also come in with rate cuts. This one I have mixed feelings over, however, as they have been clever with the launch date, preventing a percentage of clients who had deals locking in at the end of last month. If people have yet to secure a deal and have the time then these cuts will help to push them off the fence into the welcoming arms of brokers and banks and reinvigorate what has been a sedated mortgage market.
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Rohit Kohli
Director at The Mortgage Stop
It's another positive start to the week with two of the country's biggest lenders reducing rates. In a week of a General Election where we have so much uncertainty around the outcome, this shows that lenders are beginning to regain confidence and are actively starting to compete for business. Borrowers should get ready to snap up a deal as this positive energy may not last long given recent experience.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
Rate cuts are always welcome news, and the latest reductions from Halifax and NatWest signal that lenders are sharpening their competitive edges once again. This is excellent news for those seeking mortgages. With an anticipated base rate cut in August, the mortgage market is poised for a resurgence. Buyers should act quickly, though: heightened competition will likely drive property prices up, creating a brief window of opportunity for those ready to move now rather than later. Don't miss out.
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Ben Perks
Managing Director at Orchard Financial Advisers
More lenders are joining the race to reduce rates. With an election this week, it could have been a turbulent time for rates. But as swaps continue to trickle downwards, products are improving for borrowers. Hopefully this will continue into August when a Bank of England base rate cut would provide borrowers with a much needed confidence boost. The outlook for the second half of the year is much brighter.
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Jack Tutton
Director at SJ Mortgages
The summer of cuts are persisting and long may it continue, NatWest and Halifax follow several other lenders last week who reduced their rates. With SWAP rates significantly lower than what they were last month, mortgage holders will be hoping this trend remains while the sun shines.
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Dariusz Karpowicz
Director at Albion Financial Advice
Another positive sign, but let's not break out the champagne just yet. Rates have only changed by a fraction, so the impact on buyers will be minimal, especially for those who remember the ultra-low rates post-2009. Still, any good news in these times is welcome. Halifax and NatWest lowering their rates shows recognition of the recent improvements in Swap rates, hinting at the possibility of base rate cuts on the horizon. While it's a step in the right direction, the market remains cautious, and borrowers should continue to stay informed and prepared for the fluctuating landscape. Positive news is always a breath of fresh air.
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Simon Bridgland
Director at Charwin Private Clients
Lenders continue to drive down rates in response to the recent reductions in wholesale market rates. This will provide further support for borrowers who are anxious about meeting monthly bills. When the Monetary Policy Committee wake up to the very real pain and anguish borrowers feel, they may reduce the base rate at some point this year, giving the general public some confidence that their cries for a reduction are finally being listened to.
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Justin Moy
Managing Director at EHF Mortgages
Major mortgage lenders are showing no nerves about the upcoming election outcome, with cuts of up to 0.23%, which will be welcome news for borrowers. However, we may see 'little and often' improvements throughout the summer, with no lender looking to significantly increase application numbers whilst staff numbers are harder to manage through the summer holiday.