Barclays was the latest lender to announce rate cuts this afternoon, with small reductions in fixed rates across both residential and buy-to-let products.
Speaking to news wire Newspage brokers welcomed the reductions but said lenders may now be waiting for this month’s inflation data before cutting more aggressively. Justin Moy, founder at Chelmsford-based mortgage broker, EHF Mortgages, said: “These small but welcome reductions from Barclays bring them in line with the rest of the high street lenders. It does feel like lenders are now waiting for the next set of inflation data before they consider any larger cuts. This is rate tinkering rather than rate war.”
Katy Eatenton, mortgage specialist at St Albans-based Lifetime Wealth Management, agreed: “While this is good news, we need a lender to drop significantly closer to 5% to really get things moving. This is especially the case with two-year fixed rates, which most borrowers gravitate towards. However, as long as rates continue to edge down, that can only be good news for borrowers and the broader property market.”
Gary Boakes, director of Salisbury-based mortgage broker, Verve Financial, was also upbeat: “Any reduction is good news even if minor. With the 2-year swap rate today at 5.185%, it is proof that lenders are trying to do all they can to stimulate the market and keep rates as low as they can to help first-time buyers, home movers and existing customers. With a base rate rise expected again this month, this is a good sign as lenders like to be ahead of the curve so clearly aren’t expecting any shocks.”
Ashley Thomas, director of London-based mortgage broker, Magni Finance, also welcomed the news but warned many borrowers will still be facing a sharp hike in payments: “This a mix of lenders trying to get market share and a more positive view that we should be at the peak of the base rate soon. However, the reality is that a significant number of borrowers are still going to see a sharp increase in their mortgage costs and this will remain the case for a while.”
Gary Bush, financial adviser at the Potters Bar-based MortgageShop.com, said: “For Barclays to be tweaking further downwards is more good news for the UK’s mortgage holders. Although only a minor reduction, it’s welcome.”
But Peter Stamford, director of Alston-based Moor Mortgages, wasn’t overly excited: “Barclays have trimmed a tiny bit off the top to bring themselves in line with the other big players in the mortgage market. It’s hard to get too excited over 0.1% and 0.05% reductions, though.”
