Big news in the mortgage world! NatWest, Virgin Money, and now Halifax have just announced reductions in their fixed rates. This is ahead of the much-anticipated base rate decision by the Bank of England tomorrow. So, what does this mean for you?
NatWest and Virgin Money have reduced their fixed rates, with Virgin Money also introducing exclusive deals for those looking to remortgage. This includes Buy-To-Let (BTL) and Product Transfers. Now, Halifax, the biggest lender in the UK, has joined in by lowering its rates too. This collective move from these major lenders signals a significant shift in the mortgage market.
The market is buzzing with anticipation for a base rate cut by the Monetary Policy Committee. Many experts are hopeful for a significant reduction to boost optimism among borrowers. The sentiment is that a 0.25% base rate cut is highly probable, but a more substantial 0.5% cut could be a real game-changer, giving a much-needed boost to the economy.
While small rate cuts are a good start, there’s a growing call for more substantial reductions to truly invigorate the mortgage market. These minimal reductions, often less than 0.05%, may get headlines but do little to impact the average borrower significantly. A significant cut would be a real shock to the system, likely causing a more pronounced positive effect.
The new offerings from NatWest, Virgin Money, and Halifax show a strong confidence in a market that’s eager for cheaper borrowing options. Borrowers are keenly awaiting the base rate decision, but it’s essential to remember that lenders may have already factored in a potential reduction in their current lending models. Therefore, waiting for a better option post-announcement might not be the best strategy.
🔍 Key Points to Note:
What are your thoughts on these rate changes? Do you think a bigger cut is on the horizon? Share your comments below!
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Author:
Founder and mortgage and protection adviser in Albion Financial Advice
Dariusz Karpowicz is a seasoned adviser in the financial services industry. After gaining valuable experience working with an established broker, he founded his own practice, Albion Financial Advice. This firm is dedicated to assisting clients in acquiring properties and advising on various mortgage options. Born and raised in Gdańsk, Poland, Dariusz moved to the United Kingdom in 2006.
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