Clydesdale Bank has reduced selected fixed mortgage rates by up to 0.72% today, suggesting once again that lenders may be shrugging off this week’s inflation print.
Also, after today’s dire retail sales data, the odds of a cut in Bank Rate in H1 may have also likely shortened.
Newspage asked brokers for their thoughts, which can be found below.
Justin Moy, managing director at EHF Mortgages:
“Clydesdale have definitely woken up to the price war and brought some significant reductions to their fixed rates, with some slick timing following this morning’s subdued retail figures.
“Pricing under 5% for a 2-year fixed rate at 90% loan-to-value (LTV) shows their determination to grab new business, and the additional Broker Exclusive range of deals makes it even more important to engage with a mortgage adviser to find your next deal, or help with your first purchase.”
Ben Perks, managing director at Orchard Financial Advisers:
“It’s good to see it’s not just the big boys continuing to cut rates after the inflation uptick earlier in the week.
“Lenders like Clydesdale reducing rates helps the wider mortgage market and borrowers with requirements that the big six lenders won’t cater for.
“This morning’s appalling retail sales data has put the ball firmly back in the Bank of England’s court and once again increased the chances of a rate cut to save the UK economy before it’s too late.”
Richard Jennings CeMAP, founder & managing director at Richard Jennings Mortgage Services:
“These significant cuts from Clydesdale are further proof that, despite the marginal rise in inflation, lenders are still keen to get money into the market and, to attract business, are continuing to drive down their prices.
“A reduction of up to 0.72% across their product range, for both new and existing borrowers, is a clear sign that Clydesdale are keen to win new business whilst keeping their existing mortgage holders.
“It will certainly help soften the blow for borrowers with a mortgage due to renew shortly. There’s a growing sense that December’s inflation was a blip rather than a setback.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“These cuts from Clydesdale, following this morning’s woefully weak retail sales data, underlines that there is heightened expectation in the markets that the Bank of England will start lowering the base rate sooner rather than later.
“This will be great news to borrowers, though may be too little, too late for some.
“The UK economy is on red alert and the Bank of England has to look at the wider economic picture. And right now, that picture is looking like a Francis Bacon.”
Gary Bush, financial adviser at MortgageShop.com:
“This is a big chunky fixed mortgage rate reduction from Clydesdale Bank today.
“Up to 0.72% off fixed rates will provide critical support to mortgage account holders and first-time buyers.
“Despite inflation ticking upwards marginally this week, the shocking December retail figures released this morning from the Office of National Statistics will almost certainly see the Bank of England hold the base rate steady in its upcoming meeting on 1st February.
“The more positive advisers in the market are still holding onto a base rate drop coming in March. This remains to be seen, of course.”
Rohit Kohli, director at The Mortgage Stop:
“These cuts from Clydesdale show that lenders, big and small, want to lend money.
“With this morning’s retail figures and mortgage defaults on the rise, the pressure will be mounting on Threadneedle Street to take action.
“The Bank of England needs to take stock as the entire UK economy is teetering right now.”
