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    Even more sub-4% mortgage deals are now on the market

    By Vicky Shaw,

    6 hours ago

    https://img.particlenews.com/image.php?url=18FYrh_0uqTD8og00

    More sub-4% mortgage deals are set to enter the market this Thursday, in what one finance expert described as a “promising sign” for borrowers.

    The Bank of England base rate was cut last week from 5.25% to 5%, but lenders had already been slashing rates in the weeks leading up to the move.

    Barclays Mortgages is making cuts to mortgage rates which will come into effect from Thursday, including a 3.83% Premier five-year fixed rate for home buyers with a 40% deposit, which has a £899 product fee, available to its eligible Premier Banking customers.

    The previous rate on the product was 4.03%.

    Another home buyer mortgage will be offered by Barclays at a five-year fixed rate of 3.84%, for borrowers with a 40% deposit, again with a £899 product fee, with the rate having previously been 4.04%.

    https://img.particlenews.com/image.php?url=1VN7Ie_0uqTD8og00

    Rachel Springall, a finance expert at Moneyfacts said: “It’s a promising sign for borrowers to see more rate cuts by some of the biggest lenders in the country as they are in close competition to entice new business.

    “Barclays Mortgages has undercut the competition on initial rate, but we could well see more cuts on the horizon. Swap rates (which are used by lenders to price deals) are lower than what they were a month ago, and this, coupled with the recent base rate cut, can encourage lenders to bring mortgage rates down.

    “Two weeks ago, Nationwide became the first lender to offer a sub 4% mortgage for the first time in months, closely followed by NatWest just last week, and HSBC joined the fray this week.

    “Those borrowers who have been holding out to refinance would be wise to seek advice to explore the new deals available to them and select a deal which offers the best value on a ‘true cost’ basis.”

    Interest rates and mortgages

    Mortgage rates are agreed with individual borrowers and lenders, and are usually higher than the Bank of England’s base rate, though some types of mortgages follow movements in the Bank of England’s base rate.

    Most people with a mortgage will be affected by a change in interest rates in some way. How exactly will depend on the type of mortgage, among a range of other factors.

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