Average mortgage rates continue to fall

Four more mortgage lenders, including NatWest, HSBC, TSB, and Metro Bank, have reduced their mortgage rates. This brings the total number of lenders that have cut their rates since January 1st to almost 50. The lowest five-year fixes are now around 3.79%, while the lowest two-year fixes are closing in on the 4% mark. NatWest has cut rates for home buyers and first-time buyers by up to 0.4 percentage points, while HSBC has cut rates by between 0.05 and 0.4 percentage points. TSB has also announced rate cuts, and Metro Bank has reduced its product transfer rates for existing clients. Mortgage brokers believe that two-year fixed rates are unlikely to go much lower than they currently are due to market expectations for interest rates. However, some experts are optimistic that sub-4% two-year fixes could be just around the corner. 

Daily Express (16/01/2024)   Daily Mail (16/01/2024)   Evening Standard (16/01/2024)