HSBC, Barclays and NatWest to cut mortgage rates on range of products as competition heats up - How much can you save?
High street lenders are beginning to slash mortgage rates in a boon for homebuyers
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HSBC, NatWest and Barclays have all confirmed a wave of rate cuts that will benefit home movers, first-time buyers and those remortgaging.
Britons will be able to benefit from rate cuts across a range of their products, to support those looking for mortgages,
From tomorrow, September 3, NatWest and HSBC will be lowering mortgage rates on selected two-year and five-year fixed products.
NatWest is cutting its lowest rate on a five-year fix from 3.89 per cent to 3.77 per cent, with a product fee of £1,495.
Barclays has also announced a number of rate cuts including a sub-four per cent fix aimed at people remortgaging and a 3.95 per cent deal for home buyers with a 25 per cent deposit.
How much can people save?
NatWest's lowest five-year fix for someone buying with a 40 per cent deposit will be 3.77 per cent with a product fee of £1,495.
Interest rate hikes have pushed up mortgage repayments for many GETTY On a £200,000 mortgage being repaid over 25 years that would equate to £1,033 a month.
To put that in context, the average five-year fix across the whole of the market is currently 5.2 per cent, according to Moneyfacts.
Someone securing the average rate on a £200,000 mortgage being repaid over 25 years would pay £1,193 a month.
Their lowest two-year fix aimed at home buyers will fall to 4.14 per cent from tomorrow. It comes with a product fee of £1,495.
This market-leading rate is available to those moving home with a 40 per cent deposit and streaks above the two-year fixed market average of 5.56 per cent.
Ranald Mitchell, director at Charwin Mortgages thinks NatWest's latest wave of rate cuts will help reignite the housing market.
Mitchell said: "NatWest's latest rate cut is another clear signal that mortgage lenders are pulling out all the stops to reignite the housing market.
"Lenders are fiercely competing to offer the most attractive deals and there is now a real momentum building.
"This flurry of rate reductions is a positive step towards finding that sweet spot where consumer confidence rebounds and the property market gets back on track.
"It's an exciting time for potential buyers, affordability is improving, and the window of opportunity is wide open."
NatWest and Barclays will also be offering sub 4 per cent five-year fixed rate remortgage deals for those with the largest amounts of equity.
NatWest's lowest five-year fix will be 3.92 per cent with a £1,495 fee while Barclays is charging 3.93 per cent with a £999 fee.
Barclays is also offering a 4.07 per cent rate to those remortgaging with at least 25 per cent equity in their home.
As for home buyers, those with a 15 per cent deposit will be able to secure a 4.45 per cent rate from tomorrow with no fee.
Craig Fish, director at Lodestone Mortgages & Protection told Newspage: "It's only the first working day of the month but lenders are firing on all cylinders.
"There are good reductions from several lenders already this morning, and more lenders are likely to follow.
"As the nights grow darker, this is a bright sign that the property market is about to make a resurgence in time for the Autumn."