NatWest, Barclays, and TSB have all announced further mortgage rate cuts on Wednesday, with brokers describing the move as "positive news" for borrowers. The reductions come despite a recent uptick in swap rates, which are used to determine fixed-rate mortgage pricing. Brokers are urging customers to act quickly to secure the lower rates, as market conditions remain volatile due to the ongoing conflict in the Middle East.
Rate cuts across the board
NatWest announced reductions of up to 0.19%, while Barclays cut rates by as much as 0.18%. TSB led the way with cuts of up to 0.35%. Although Barclays also raised certain selected rates, brokers suggested this was largely about managing business volumes. These reductions follow a wave of major lenders lowering their rates the previous week.
Justin Moy, managing director at Chelmsford-based EHF Mortgages, said: "It's positive to see these cuts, especially given that swap rates have edged upwards slightly this week. People need to take advantage of this improved pricing, as you never know what may change or how quickly."
Brokers urge borrowers to act fast
Omer Mehmet, managing director at Welling-based Trinity Finance, echoed this sentiment: "It's encouraging to see lenders continue to cut rates, which suggests they're hungry for business after a far quieter March and April than usual due to the war. But borrowers should not believe that the only way for rates now is down, as markets can move very quickly and rates could be rising again before you know it."
Andrew Montlake, CEO at London-based Coreco, also cautioned that the market backdrop remained uncertain. "It's great to see these cuts today, but there is still a lot of uncertainty among lenders and rates could rise again very quickly subject to events in the Middle East. But for now, more cuts will be welcomed by borrowers."
Short shelf-life of mortgage deals
Emma Jones, managing director at Runcorn-based Whenthebanksaysno.co.uk, highlighted the need for agility: "A week or two ago, it was revealed that the average shelf-life of a mortgage was just eight days, which shows how important it is for people to act when good rates become available. Competitive rates can come and go in the blink of an eye."
Matthew Fleming-Duffy, founder of Harbour Home Finance, added: "For borrowers, this is a reminder that the 'best rate' is a moving target. These constant shifts highlight why good advice and timing are key, because the cheapest deal today may not be there tomorrow."
