HSBC and NatWest have announced mortgage rate cuts within hours of each other, as the trend of easing rates continues. HSBC will reduce rates on several popular products from Tuesday, 5 September, while NatWest has cut fixed-rate loans by up to 0.35 percentage points and tracker rates by up to 0.55 percentage points.
The cuts mark the sixth consecutive week of reductions by major UK lenders, following a peak in mid-July when rates hit record highs amid expectations of further Bank of England base rate rises. Brokers predict the remaining members of the 'Big Six'—Lloyds Banking Group, Nationwide, Santander and Barclays—will soon follow suit.
Lewis Shaw, owner of Shaw Financial Services, said: 'With NatWest following hot on the heels of HSBC in announcing new rate reductions, there’s every chance we could see the remaining big four come to the party this week too.' Nationwide already cut rates last Thursday, and the other three had done so within the previous fortnight.
Steven Morris of Advantage Financial Solutions suggested Halifax, part of Lloyds Banking Group, may cut again soon despite a recent repricing. Justin Moy of EHF Mortgages agreed, saying: 'I am sure others will follow the lead from HSBC and NatWest later this week.'
Shaw attributed the cuts partly to lower demand, noting: 'Lenders are struggling to get new business, and the rate tap is the only tool they can turn to.'
