Major UK mortgage lenders have moved swiftly to reduce their rates following the Bank of England's decision to cut the base rate to 4.5 per cent.
The move is set to benefit thousands of borrowers across the country, with several leading lenders announcing immediate reductions to their mortgage products.
MPowered Mortgages, Virgin Money, Yorkshire Building Society, Santander, and Halifax, have all unveiled rate cuts across their product ranges.
Barclays had already lowered rates on purchase and remortgage products by up to 0.25 percentage points ahead of the Bank's announcement.
The base rate reduction marks the third cut since 2020, with tracker and standard variable rate mortgage holders expected to see immediate changes to their payments.
MPowered has implemented comprehensive cuts across its fixed-rate mortgage range, with two-year fixes now starting at 4.34 per cent at 60 per cent loan-to-value (LTV) with a £999 fee, or 4.59 per cent with no fee.
Three-year fixed rates from the digital lender MPowered begin are dropping to 4.29 per cent without a fee
GETTYThree-year fixed rates from the digital lender begin at 4.14 per cent at 60 per cent LTV with a £999 fee, dropping to 4.29 per cent without a fee.
For five-year products, rates now start at 4.29 per cent at 60 per cent LTV with a £999 fee, while fee-free options begin at 4.43 per cent.
Stuart Cheetham, chief executive of MPowered Mortgages, said: "We have been quick off the mark to cut mortgage rates following the recent base rate cut as we feel strongly that this good news should be passed to borrowers as soon as possible."
Yorkshire Building Society announced a 0.25 per cent reduction on its tracker mortgages, effective from March 9, alongside a cut to its standard variable rate from 7.74 per cent to 7.49 per cent.
The mutual has reduced rates by up to 0.31 per cent across its mortgage range, with varying cuts at different LTV levels.
A new two-year fixed purchase product is available at 4.56 per cent at 75 per cent LTV, featuring a £495 fee, £250 cashback and free standard valuation.
For remortgages, the society is offering a two-year fixed rate at 75 per cent LTV at 4.39 per cent, including a £995 fee, free standard valuation and remortgage legal service.
The mutual's £5K Deposit Mortgage rate has also been reduced from 5.74 per cent to 5.69 per cent.
Halifax has announced reductions across its residential mortgage range, with cuts of up to 0.11 per cent for homemover and first-time buyer products.
Product transfer and further advance products have seen larger reductions of up to 0.30 per cent.
LATEST DEVELOPMENTS:
Selected remortgage products have also decreased by up to 0.30 per cent, though some 1.5 year fixed rate remortgage products have seen increases of up to 0.07 per cent.
The lender has also launched a new combined product transfer and further advance application process.
The new system offers instant decisioning with a soft footprint credit search, allowing brokers to create and review illustrations instantly.
Santander will reduce its tracker mortgage rates and standard variable rate by 0.25 per cent from March 3, with its follow-on rate falling from 8 per cent to 7.75 per cent.
The lender's SVR will decrease from 7 per cent to 6.75 per cent on the same date.
Mortgage costs are likely to come down due to the base rate reduction
GETTYVirgin Money and Clydesdale Bank have also announced reductions, with their standard variable rate dropping from 7.74 per cent to 7.49 per cent. Their buy-to-let variable rate will decrease from 8.24 per cent to 7.99 per cent.
Clydesdale Bank's offset variable rate will reduce to 7.49 per cent, while its buy-to-let variable rate and offset variable investment housing loan rate will fall to 7.99 per cent.
Looking ahead to future rate movements, Stuart Cheetham, MPowered's chief executive said: "While the market is expecting a further three cuts to the Bank of England base rate in 2025, this has largely been factored into current rates."
He cautioned that while rates may decrease further, significant drops are unlikely.
"While we may see rates come down a little further, they will not come down significantly. Borrowers should bear this in mind when making decisions on their mortgages," Cheetham added.
You may like
