Mortgage lenders have started the year by cutting rates, taking some of the pain out of the cost of a new deal for homeowners.
The UK’s biggest lender, the Halifax, has cut some interest rates by close to one percentage point, with brokers now expecting others to follow suit.
HSBC has announced it will make cuts on Thursday, in what is being described as a “fast-moving market”.
HSBC has announced it will make cuts on Thursday, in what is being described as a “fast-moving market”.
“When lenders make big rate cuts, they do not generally reduce all of the products by the same amount,” said Aaron Strutt, from broker Trinity Financial.
Mortgage rates will remain higher than many people have been accustomed to because of significant changes over the last two years.
The interest rate on a fixed mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it. Doing nothing would leave people on a variable rate, which are very expensive.
Some 1.6 million homeowners will see their current fixed-rate deal expire over the next 12 months, the vast majority of whom could see their monthly repayments rise quite sharply.
Mortgage lenders have started the year by cutting rates, taking some of the pain out of the cost of a new deal for homeowners.
HSBC has announced it will make cuts on Thursday, in what is being described as a “fast-moving market”.
The UK’s biggest lender, the Halifax, has cut some interest rates by close to one percentage point, with brokers now expecting others to follow suit.
“When lenders make big rate cuts, they do not generally reduce all of the products by the same amount,” said Aaron Strutt, from broker Trinity Financial.
HSBC has announced it will make cuts on Thursday, in what is being described as a “fast-moving market”.
HSBC has announced it will make cuts on Thursday, in what is being described as a “fast-moving market”.
“When lenders make big rate cuts, they do not generally reduce all of the products by the same amount,” said Aaron Strutt, from broker Trinity Financial.
Mortgage rates will remain higher than many people have been accustomed to because of significant changes over the last two years.
The interest rate on a fixed mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it. Doing nothing would leave people on a variable rate, which are very expensive.
Some 1.6 million homeowners will see their current fixed-rate deal expire over the next 12 months, the vast majority of whom could see their monthly repayments rise quite sharply.
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