Banks to cut mortgage rates to lowest since 2022

Banks are set to cut mortgage rates to their lowest levels since 2022, as strong competition between lenders drives down the cost of home loans. The Co-op Bank will release a two-year fixed-rate deal at 3.85%, the first below 4% in 15 months. Other big lenders, including Barclays and Nationwide Building Society, are expected to follow suit. The financial data analyst Moneyfacts said the average rate on a two-year fix had fallen from 6.04% at the start of last month to 5.83% on Friday, and the average five-year fix from 5.65% to 5.46%. David Hollingworth, from the broker L&C Mortgages, said the lower rates "should help lift some of the new year blues for borrowers coming off their existing deals". About 1.6m homeowners are due to come off their existing fixed deals this year, according to the trade association UK Finance. 

The Times (08/01/2024)