You are here: Home - Remortgage - News -

Mortgage rates slashed as lenders fight for borrowers

0
Written by: Lana Clements
25/01/2018
Lenders are vying for your business, and they are offering some tempting mortgage deals to get it
Mortgage rates slashed as lenders fight for borrowers

Barclays and TSB are the latest lenders to take an axe to mortgage rates, as competition for borrowers ramps up.

Both banks have reduced rates on two and five-year fixed-rates, including purchase and remortgage.

Barclays now offers a two-year fix at 1.33% and 60% loan to value (LTV), while TSB has reduced five-year remortgage rates by up to 0.2% on deals up to 90% LTV.

Accord also snipped rates this week by up to 0.35% on two-year deals, while Santander, Skipton and Leek Building Society are among the other lenders to have announced cuts.

Roland McCormack, TSB’s mortgage distribution director, said: “We always want our customers to borrow well and these rate reductions are good news for people who are buying their own home, or want to get a better mortgage deal with TSB.”

The average two-year fixed-rate has slipped to 2.34% from 2.35% over the past month, according to Moneyfacts data.

Providers are battling to entice new borrowers through the door, as appetite to lend outpaces demand, according to experts.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Lenders remain keen to lend and there is more money available than people ready to borrow it, which will keep mortgage rates low at least for now.”

It comes as data from UK Finance showed that mortgage approvals in December has fallen from the same period in 2016.

Earlier this month, David Hollingworth from broker London & Country predicted that many lenders could offer loss-leading deals in order to maintain market share in 2018.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Save money now!

See how much you could potentially save by remortgaging to a different product

Your Mortgage Guides

Your Mortgage Award Winners 2017-2018

Download our guide to the best mortgage lenders in the UK

Read More >

How much can you borrow?

A calculator designed to help you understand how much you can borrow towards your property
Read previous post:
London street
Prime London asking prices have been cut by an average £223K

£1bn in total has been knocked off asking prices in the capital's premium property enclaves

Close