Positive news as mortgage lenders cut rates in New Year

Wednesday 3 January, 2024

The New Year has started positively for anyone looking for a mortgage, as some mortgage lenders including Halifax and HSBC have cut rates by up to 1% on some of their mortgage products. 

Looking for mortgage advice? 

Our mortgage broking teams in Lichfield and St Albans offer you personalised mortgage advice. Call us or complete our booking consultation now and organise an initial consultation, with no obligation to take further mortgage advice. 

Why are mortgage lenders cutting mortgage rates? 

Positive inflation data suggests that interest rates may have peaked, and this is supported by The Bank of England as they kept base rates unchanged in December 2023 for the third month in a row. Some experts now believe that interest rates could be reduced in 2024 which is good news for anyone needing to remortgage. Some mortgage lenders are reviewing this data and are reducing mortgage rates on their products. 

Is the mortgage rate on all products being reduced? 

It is important that customers check products carefully because not all mortgage products are affected. When mortgage lenders make big rate cuts they don’t tend to cut every product by the same amount. For example, the rate cuts on HSBC products are currently for re-mortgage products. Amongst the bank’s new deals is a five-year fixed remortgage at 3.94% if you borrow up to 60% of the property value. 

Hayley Croft, Lonsdale mortgage broker in Lichfield said: 

‘We are really encouraged by the reduction in mortgage rates from Halifax and HSBC and hope other mortgage lenders follow their example. We are currently meeting customers who fixed their mortgage two years ago and are adjusting to a different environment with higher mortgage rates. We recommend that you contact us at least six months before your mortgage renews so we can check the mortgage market for you and provide you with appropriate mortgage and protection advice. Remember if you see a mortgage deal like the HSBC remortgage five-year fixed rate deal listed above you must act quickly as deals are often removed at short notice. Our mortgage brokers have access to a wide range of mortgage products, and we can compare mortgage rates so you will be confident that we get you the best rate available to you. We can also help you complete your application form, and we work with your mortgage lender or your solicitor to ensure your mortgage is completed to your timescale. We offer an initial mortgage consultation before we offer mortgage advice so call us today or complete our booking consultation and your local mortgage broker will be in touch. 

In Summary 

Don’t delay call our mortgage advisors today if your mortgage renews in 2024. We can talk you through the current mortgage market and find you the best mortgage deal for your circumstances.  Contact our mortgage brokers in Lichfield and St Albans.

As a mortgage is secured against your home, it may be repossessed if you do not keep up the mortgage repayments.  The information contained in within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction. 

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