Borrowers are advised to search the market for the best deal when looking for a new mortgage as competition is fierce.
Nationwide yesterday cut interest rates by up to 0.19% across the fixed rate range and by up to 0.12% on tracker mortgages.
Barclays revealed today that it will make another set of interest rate cuts tomorrow (Thursday 9 July).
Halifax also announced discounts of 0.15% and offered a 0.20% discount to Lloyds Premier customers. Virgin Money has also reduced remortgage rates.
It comes after a number of major lenders, including Nationwide, cut rates last week. This means that the average new mortgage rate fell from 5.58% last week to 5.45%.
This time a month ago, the typical rate, according to Moneyfacts, was 5.58% – showing that prices are definitely moving in the right direction.
But borrowers are still being urged to seek advice to ensure they get the best deal and avoid waiting for rates to fall further.
“For borrowers, the message is simple,” said Nicholas Mendes, technical director of mortgages at John Charcol. “Trying to time the absolute bottom of the market is impossible, and waiting for interest rates to fall further can easily cost more than it saves.”
“Anyone remortgaging should secure a rate now, as most lenders will allow you to switch to a lower deal if the rate improves before completion, so you get protection without losing the upside.
“For buyers, if you see a property you like that’s reasonably priced, don’t delay. Slowing down in the hope of getting a slightly cheaper price risks missing out on just the right home, and that disappointment tends to outlast any small price savings.”
Borrowers looking for a new deal are advised to seek advice from a broker to ensure they are able to access the best deal to suit their circumstances.
Tracey Dixon, owner of Cardiff-based Pure Mortgage and Protection, told Newspage: “The lowest rate doesn’t always mean the best mortgage, but more competition always benefits borrowers.
“The recent cuts in interest rates nationwide are encouraging and reflect increased competition in the mortgage market. If swap rates remain favourable, I expect other lenders will review their rates as well.”
“The key message to borrowers is not to assume that their current lender has the best deal, but to review the entire market before making a decision.”
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