Mortgage lenders slash rates amid growing competition for business

By Fifty21 Media

30 Mar 2023

AdobeStock_98922171.jpeg.jpg

Despite the Bank of England's recent base rate hike, mortgage lenders have been reducing their borrowing costs. This comes as a surprise to many who expected interest rates to rise across the board.

In a move that could save borrowers thousands of pounds over the life of their loans, several mortgage lenders are reducing their fixed and variable rates. This comes as they strive to stay competitive in a crowded marketplace.

Despite the Bank of England's recent increase in the Bank Rate from 4% to 4.25%, many lenders are cutting rates across their mortgage ranges. Here are some of the notable cuts:

Nationwide Building Society

Nationwide has reduced rates on its fixed and tracker mortgages by as much as 0.45%. Its five-year fixed rate mortgage now starts at 3.94% (60% LTV).

NatWest

NatWest has cut its buy-to-let fixed rates by up to 0.27%, with a five-year fix (75% LTV) now starting at 4.62%.

HSBC

HSBC has also cut its fixed rates, with the 80% LTV product now starting at 4.24%.

Clydesdale Bank

Clydesdale Bank, which is part of Virgin Money, has lowered the fixed rates on several of its mortgage deals by up to 0.6%. A two-year fixed rate for remortgage customers now starts at 4.74% (80% LTV).

Coventry BS

Coventry BS has reduced its buy-to-let fixed rates by up to 1% and its residential rates by up to 0.2%. Its five-year fixed rate mortgage now starts at 4.6%.

What's Driving These Cuts?

Steve Cox, the chief commercial officer at Fleet Mortgages, says that several factors are behind the rate cuts. "Due to a combination of factors, including a softening of swap rates and further movement within the sector, we've been able to reduce our fixed-rate pricing across the board by 0.2 percentage points," he said.

Cox also points to the UK's recent budget announcement, saying that it has helped ease market sentiment. "The Budget last week, and in particular the Office for Budget Responsibility's inflation and interest rate forecasts, appear to have added a further layer of calm to market sentiment, with the belief that rates will now peak at a lower level than previously feared. It means we've been able to review our pricing and cut it accordingly," he explained.

What This Means for Borrowers

If you're in the market for a mortgage, these cuts could translate into significant savings over the life of your loan. Be sure to shop around and compare rates from multiple lenders to find the best deal. With so much competition in the market, you may be able to secure a lower rate than you initially thought possible.

While the recent base rate hike by the Bank of England may have led to concerns about rising interest rates, mortgage lenders have actually been reducing borrowing costs. This presents an opportunity for those in the market for a mortgage, but it's important to carefully consider all options and seek professional advice before making any decisions.

This is good news for those looking to get a mortgage or refinance their current mortgage. However, it's important to remember that the interest rate you'll be offered will depend on your credit score and other factors.

Latest news

1

Construction begins on new Civil Service office building in Talbot Gateway Alan McBride Muse Will Town Defence Infrastructure Organisation Jennifer Chard Defence Business Services Cllr Lynn Williams Blackpool Council Garry Bowker Vinci

Construction begins on new Civil Service office building in Talbot Gateway

20 May 2025

2

Skiddle raises over £750,000 for charities Skiddle cheque presentation to Alder Hey Hospital

Skiddle raises over £750,000 for charities

20 May 2025

3

Former Victorian Hotel approved for residential conversion The site

Former Victorian Hotel approved for residential conversion

19 May 2025

4

REVOLUTION PARK: Work starts on Darwen’s new home of advanced manufacturing Oliver Webber, Tracy Clavell-Bate and Tim Webber from Barnfield Group with Cllr Phil Riley, second from right, Leader of Blackburn with Darwen Council

REVOLUTION PARK: Work starts on Darwen’s new home of advanced manufacturing

19 May 2025

5

Two Cuckoo Gins named winners in The Gin Guide Awards 2025 Mark Long

Two Cuckoo Gins named winners in The Gin Guide Awards 2025

19 May 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200pxtrident 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

The Business Network Central & East Lancashire
LBV Hub Networking
22 May 2025 - 22 May 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Preston Freelancer Meet-Up: May
Freelancer Meet-Up May.png.png
LBV Hub Networking
22 May 2025 - 22 May 2025

Preston Freelancer Meet-Up: May

society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Amber River True Bearing quarterly investment seminar
LBV Hub Seminars
22 May 2025 - 22 May 2025

Amber River True Bearing quarterly investment seminar

Cottons Hotel & Spa , Knutsford, WA16 0SU

16:00 - 18:00

Liverpool Business Expo 2025
https---cdn.evbuc.com-images-881365363-4862066883-1-original.20241023-085714.jpeg.jpg
LBV Hub Awards
23 May 2025 - 23 May 2025

Liverpool Business Expo 2025

Aintree Racecourse , Liverpool , L9 5AS

09:00 - 15:00

Advantage: AI – A Workshop for Business Leaders – May 29
Artboard 15.png.png
LBV Hub Seminars
29 May 2025 - 29 May 2025

Advantage: AI – A Workshop for Business Leaders – May 29

Door4 Office, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin