Borrowers abandon mortgage deals as price war begins

Borrowers are abandoning mortgage deals they signed up to last year as a new year price war begins. HSBC, NatWest, Lloyds, and Santander have all cut rates, with the average two-year fix dropping from 5.93% to 5.61% and the average five-year fix falling from 5.54% to 5.24%, according to the data firm Moneyfacts. Nicholas Mendes from broker John Charcol noted that the best five-year fixes are now below 4%, which is a significant psychological difference. Borrowers can lock in a rate up to six months before their deal ends, leading to thousands of cancelled applications as rates become cheaper. The Bank of England's 14 base rate increases since December 2021 have caused mortgage rates to reach a 15-year high in August.

Sunday Express (21/01/2024)   The Sunday Times (21/01/2024)