Mortgage Market Heats Up as Lenders Slash Rates

Mortgage competition is intensifying as lenders anticipate a potential Bank of England interest rate cut. Santander has led the charge by reducing fixed-rate mortgage offers for both homeowners and landlords. Other major players like Barclays, Nationwide, and TSB have followed suit, slashing rates across the board.

Santander has sweetened the deal for homebuyers and remortgagors with reductions of up to 0.2 percentage points. Their new offerings include competitive five and two-year fixed rates, both for purchase and remortgage. Buy-to-let investors haven’t been left out, with rate cuts of up to 0.13 percentage points.

Virgin Money, soon to be part of the Nationwide family, has also joined the rate war. New and existing customers can benefit from reductions of up to 0.31 percentage points on selected fixed-rate deals. Their sister company, Clydesdale Bank, has also cut rates, with particular focus on professionals like doctors and dentists.

Paragon Bank is targeting buy-to-let landlords with lower two-year fixed rates for energy-efficient properties.

These aggressive moves by lenders come as the housing market shows signs of recovery. Mortgage approvals and borrowing have increased in recent months, suggesting growing confidence among homebuyers. All eyes are now on the Bank of England’s interest rate decision on Thursday. A potential rate cut could further fuel competition among lenders and drive down mortgage costs for borrowers.

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