Mortgage rates set to rise as price war ends

Experts claim mortgage rates of below 4% could disappear within days as a price war between banks appears to cool. Halifax cut rates on Tuesday and was offering a market-leading 3.93% five-year fixed rate for buyers, then put it up to 4.18% on Friday. On Thursday someone remortgaging with a 40% deposit could get a five-year fix at 3.89% from NatWest. By Friday the best rate was 3.93% from Cumberland Building Society. Nick Mendes from the broker John Charcol said: "It won't be long before those remaining sub 4% deals are no longer available. Any rate war seems to have cooled off". Martin Stewart from London Money said: "The honeymoon period seems to be over for what many thought was a new direction of travel for mortgage rates. Hoping for things to improve may come with an expensive price tag, as I think only a significant recession is going to see a big reduction in the overall cost of borrowing".

The Sunday Times (11/02/2024)