Santander to cut selected mortgage rates from Monday

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Andrew Feinberg

White House Correspondent

More lenders have announced mortgage rate reductions and new deals, following a stream of rate cuts earlier this week.

Santander said that from Monday, selected fixed purchase and remortgage rates for homeowners will decrease by up to 0.29 percentage points.

It will announce details of the new rates on Monday and added there are no changes planned to its residential tracker mortgages or buy-to-let deals.

And Nottingham Building Society said it had launched new remortgage and purchase deals.

The Nottingham said it will announce further rate reductions, including in the residential and buy-to-let sectors over the coming days.

Halifax, NatWest, First Direct, HSBC UK, Nationwide Building Society and TSB have also been among the lenders to announce mortgage rate reductions this week.

Swap rates, which underpin fixed mortgage rates, have stabilised amid expectations that inflation is cooling.

Consumer Prices Index (CPI) inflation was 7.9% in June, slowing from 8.7% in May, according to the Office for National Statistics (ONS). This has fuelled expectations that the base rate may not need to climb so high.

Last week, the Bank of England raised the base rate from 5.00% to 5.25% – the 14th increase in a row.

The rate reductions have helped to push down average fixed mortgage rates.

According to Moneyfactscompare.co.uk, the average two-year fixed-rate mortgage on the market for homeowners on Friday was 6.80%, down from 6.83% on Thursday.

The average five-year fixed residential mortgage rate on Friday was 6.28%, down from an average of 6.33% on Thursday.