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UK lenders cut mortgage rates amid competitive market

Published Nov 21, 2023 12:09PM ET Updated Nov 21, 2023 12:09PM ET
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LONDON - In a move to remain competitive, UK lenders HSBC, TSB, and Virgin Money (LON:VM) have announced significant cuts to their mortgage interest rates, affecting a range of products from residential purchases to landlord investments. This series of rate reductions comes as the mortgage market sees increased activity and financial institutions vie for customers with attractive deals.

HSBC revealed that starting tomorrow, it will lower rates on various mortgage offerings. The changes include reductions in two-year fixed fee-savers and five-year fixed standards by up to a maximum of 75% loan-to-value (LTV). Premier exclusive offerings will also see rate decreases, aiming to provide more affordable remortgage opportunities to homeowners.

Following suit, TSB announced it would reduce mortgage interest rates by up to 0.85%, impacting purchase agreements including affordable housing contracts from tomorrow. House purchase agreements with an LTV ratio up to 85% are set for cuts by as much as 0.3%, with smaller reductions planned for higher LTV ratios. Remortgage agreements across two-, three-, and five-year terms can expect about a 0.3% rate drop.

Virgin Money has also joined the trend by launching new mortgage products with significant rate cuts for both landlords and residential buyers. Their portfolio now includes over £1m remortgages at a two-year fixed rate of 5.40% and a five-year fixed rate of 4.95%, each carrying a £1,995 fee. Purchase mortgages start at two-year fixes of 4.97% and five-year fixes of 4.53%, with fees starting at £1,295 plus £500 cashback for specific LTVs between 65%-75%. Additionally, Virgin Money's fee-saver mortgages offer £300 cashback with competitive rates like the two-year fix at 5.33%. Buy-to-let and core residential fixes have been discounted as well, including three-year fix terms.

These strategic moves by UK lenders are indicative of the changing landscape in the mortgage market where competition is intensifying. By offering lower rates and various incentives, banks aim to attract customers looking to purchase homes or refinance existing loans under more favorable conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

UK lenders cut mortgage rates amid competitive market
 

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