Leeds Building Society has cut selected fixed rates by up to 0.25%.
It has also launched a new 2-year 80% loan-to-value (LTV) Residential and Reach fixed rates.
Gen H has also announced it is reducing rates by up to 0.20% today, 25 March 2024, at 5:30 pm.
Newspage asked brokers for their views, below.
Reaction:
Robert Timm, managing director at Sunland Mortgages:
“Leeds has taken the lead following last week’s inflation print and the dovish Bank of England minutes.
“Gen H have also announced cuts this morning in more welcome news for borrowers.
” It’s so important that drops in swap rates are passed onto consumers as quickly as possible and both these lenders have done that. Chapeau.”
Michael Haupt, owner and adviser at Tomorrow Mortgages:
“It’s great news that Leeds have announced a number of rate cuts this morning.
“Hopefully this is the start of things to come and the general narrative around mortgage rates will become more positive.
“Though we didn’t get a rate cut last week, we got very clear signs from the Bank of England that one is coming soon.”
Ying Tan, CEO at Habito:
“Great to see Leeds being the first mover, off the back of positive inflation news last week.
“They might be the first but they certainly won’t be the last as swap rates have fallen since Andrew Bailey’s comments that base rate cuts are on their way.”
Riz Malik, director at R3 Mortgages:
“Leeds and Gen H lead the way on rate cuts this week but they won’t be the last.
“Expect to see more lenders repricing downward over the following weeks as we get closer to the anticipated base rate cut.”
Darryl Dhoffer, adviser at The Mortgage Expert:
“Finally a couple of lenders are making the cuts to rates brokers were expecting.
“It will be good to see the big six lenders follow their example this week, as that will add some real momentum.”
Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management:
“A great start to the week. Leeds weren’t competitively priced anyway, so this probably won’t kickstart a rate war, but it will hopefully get some of the higher priced lenders moving to fight for business.”
Justin Moy, managing director at EHF Mortgages:
“Great to see lenders starting to reprice their fixed rates given the bullish outlook from the Bank of England last week.
“Putting rates changes in reverse gear was desperately needed.
“Both Leeds Building Society and Gen H are the quickest off the starting grid.
“Let’s hope other lenders are putting on their slicks ready for their fastest lap this week.”
Charles Breen, founder at Montgomery Financial:
“Quick off the mark, Leeds has lessened the load on borrowers with a competitive rate cut.
“We have seen the cost of raising money reduce in the past week and it’s only right that finally a major UK lender has reduced their rates and stopped price gouging off the backs of ordinary borrowers.
“When will the big six follow suit?
“Lenders with much greater capacity to pass on savings to borrowers, they appear to be forgetting that the ordinary borrower bailed them out in 2008 and it’s time for them to return the favour.”
Dariusz Karpowicz, director at Albion Financial Advice:
“Leeds Building Society slashing rates and introducing fresh options is like a ray of sunshine after a spell of gloomy skies in the mortgage world.
“This move might just be the first ripple of optimism following last week’s surprisingly positive inflation news and Governor Andrew Bailey’s dovish tones.
“It’s a sign that better days could be on the horizon, not just doom and gloom.
“While this is a step in the right direction, keep your eyes peeled for potentially bigger waves of change, especially if the Bank of England decides to lower its rates, possibly this summer.
“The current shifts are promising, but the real game-changer will be when the Bank of England makes its move.”
Akhil Mair, director at Our Mortgage Broker:
“Leeds BS rate cuts and new fixed rates signal positive shifts in the mortgage market.
“With inflation data on our side and a supportive stance from Andrew Bailey, more opportunities are on the horizon.
“Yet, to fully capitalise on this momentum, we need action from other lenders too. If you’re eyeing refinancing or buying a property, seize the moment.”
Rohit Kohli, director at The Mortgage Stop:
“Leeds and Gen H have thrown down the gauntlet to all the big boys this morning.
“Both lenders passing on the savings they will have benefitted from as a result of last week’s inflation figures.
“Will we see more reductions, especially from the big lenders, or will they use this time to take in some more profits?”
Elliott Culley, director at Switch Mortgage Finance:
“We have reached the summit of the latest mortgage rate upcycle and we are about to see a rapid descent once again as mortgage lenders reduce rates.
“Leeds will be the first of many lenders set to dive in and make a splash in the market. Borrowers need to be ready to take advantage.”
