Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

HSBC Joins UK Banks in Cutting Mortgage Rates

by June 25, 2024
June 25, 2024
HSBC Joins UK Banks in Cutting Mortgage Rates

HSBC has announced reductions in its mortgage rates, joining Barclays and NatWest in a move that comes on the heels of hints from the Bank of England about a potential summer base rate cut.

Barclays lowered its fixed-rate home loan costs for new deals on Tuesday, with HSBC’s cuts set to take effect on Wednesday. Mortgage brokers anticipate that more lenders will follow suit.

Despite these reductions, the overall impact remains modest. Borrowers continue to face relatively high costs, with many expected to see significant increases in their monthly repayments once their current, cheaper deals expire.

Mortgage rates have been rising, partly due to reduced competition among lenders during the election campaign. According to Moneyfacts, the average rate for a two-year fixed mortgage stands at 5.96%, while the average five-year deal is at 5.53%.

“These moves suggest that the recent edging up in rates is now unwinding and most cuts are being made in small steps,” said David Hollingworth from broker L&C.

Fixed mortgage rates remain unchanged until the deal expires, usually after two or five years, requiring borrowers to select a new rate. If they do nothing, they revert to a variable rate, which can be very costly.

This year, about 1.6 million existing borrowers will see their relatively cheap fixed-rate deals expire.

While spring typically brings more activity in the housing market, uncertainty over political outcomes may have dampened this trend.

Borrowers are also closely watching the Bank of England’s Monetary Policy Committee (MPC), which will decide on interest rates at its next meeting on 1 August. Recent signals from the MPC suggest a majority might support a rate cut.

Optimism about this potential outcome may have spurred the latest rate reductions by major lenders, who are also keen to attract more customers.

“Lenders will be keen to kickstart a market lethargic from the election, hot weather, and football,” said Andrew Montlake from mortgage broker Coreco. “The country desperately needs the boost of a cut to relieve some of the financial pressures that have held back the economy and put borrowers under immense pressure.”

However, Montlake cautioned that the recent positive news about falling inflation might be temporary, possibly prompting more cautious actions from the Bank.

Michelle Lawson from Lawson Financial noted that while borrowers are “beleaguered,” more lenders might cut rates in the coming days.

Additionally, figures from UK Finance, representing lenders, show a further decrease in the number of people paying only the interest on their home loans, despite the challenging conditions for borrowers.

Read more:
HSBC Joins UK Banks in Cutting Mortgage Rates

0
FacebookTwitterGoogle +Pinterest
previous post
Careers in construction are an untapped treasure trove
next post
SHEIN’s London Flotation: A ‘Badge of Shame’ for the Stock Exchange, Says Amnesty International

You may also like

5 Tips to Improve Virtual Meetings for Maximum...

May 9, 2025

Best Crypto Casinos 2024: List of Top Crypto...

August 9, 2024

How To Fund Your Startup

October 12, 2022

Virgin Atlantic braces for economic turbulence as air...

November 3, 2022

Construction hungry for new talent as one in...

June 22, 2023

What Are Modded Accounts, and How Do They...

December 30, 2024

UK business optimism at 18-month high as hope...

September 2, 2023

Secrets of Success: Branwell Moffat,  Founder and Director...

November 29, 2023

UK Recruiters warn Bank of England of permanent...

December 8, 2023

Overhaul planned for payments with renewable energy sector

March 13, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • TIMELINE: Inside the evolving relationship between Trump and Musk from first term to this week’s fallout

      June 7, 2025
    • Deadly drone wars are already here and the US is horribly unprepared

      June 7, 2025
    • Week Ahead: NIFTY’s Behavior Against This Level Crucial As The Index Looks At Potential Resumption Of An Upmove

      June 7, 2025
    • FLASHBACK: Musk accused Trump, GOP leaders of not wanting to cut spending — here’s where they said they would

      June 7, 2025
    • ‘Right down the line’: Medicaid reform in ‘big, beautiful bill’ divides lawmakers by party

      June 7, 2025
    • FAST distribution and IA

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,562)
    • Stocks (3,135)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved