Mortgage rate cut but how long will it last?

NatWest and Santander have become the latest mortgage lenders to announce rate reductions.

Starting this morning, both lenders have introduced lower mortgage rates, continuing a trend that began after the Bank of England reduced the base rate earlier this month.

NatWest's new lowest rate is now 3.89% for a five-year fixed mortgage at 60% loan-to-value (LTV) with a £1,495 fee, down from the previous rate of 4.03%. Santander has yet to disclose its updated rates.

Currently, the best mortgage deal available is from Barclays, offering a 3.83% rate at 60% LTV with a £899 fee.

According to Moneyfacts, the average mortgage rate remains at 5.43% for a two-year fix and 5.39% for a five-year fix.

Mortgage brokers are optimistic that more rates could drop below the 4% threshold, potentially increasing homebuyer demand.

However, with inflation data expected to show an increase this week, significant rate cuts may be limited.

If you would like any help with your current or future mortgage, contact David at KDW. 

www.kdw.co.uk/financial-services/mortgages