Principality Building Society will be making price changes to its on-sale acquisition mortgage range, as of 9am tomorrow, Thursday the 10th of August.
The Society informed brokers that it will be decreasing 2- and 5-year fixed rates from its 75% loan-to-value (LTV) product range by up to 0.30%.
In addition, it will also introduce increases across its 2- and 5-year fixed rates in its 95% LTV product range by up to 0.15%.
Nicholas Mendes, mortgage technical manager at John Charcol, said: “Fixed rates are on a downward trend, but it may be months before we start to see 2-year fixed rates sub 5%, it took until early January following the mini-Budget fall out for fixed rates to settle and lenders competing to win business again.
“Core inflation remains close to a 30 year high, which is the area the Bank of England is targeting to bring down so we should still expect another rise in September.
“The UK has the highest inflation amongst the G7 countries, but hopefully this marks the start of a downward trend and towards the government target to half inflation to 5% by the end of the year, markets will be watching closely on 16th August when the ONS release the latest figures.
“It will take a few months before we see any substantial decreases in fixed rate pricing, and should expect to see small reductions over the next few weeks before we see lenders starting to competing with one another again.”
