 recent base rate hike. Nationwide , HSBC and TSB are poised to make reductions on their products from tomorrow. 1 Three major lenders are cutting rates on their mortgage products from tomorrow Credit: PA Nationwide Building Society is reducing some of its fixed-rate mortgages by up to 0.55%. Meanwhile, HSBC is expected to cut rates on its residential mortgages, although the bank is yet to offer specific details. Plus, TSB is slashing rates on selected five-year fixed mortgages by up to 0.40%, with rates starting from 5.44%. It comes despite the BoE recently hiking its base rate from 5% to 5.25% in a bid to slow soaring inflation . It is the fourteenth time in a row that the BoE has raised rates since December 2021. Any rise in the base rate is usually echoed in mortgage rates. However, inflation in June stood at 7.9%, slowing from 8.7% in May , fuelling expectations the rate will not need to rise as high as previously thought. Lenders have in turn started factoring this into some of their mortgage rates. At the same time, swap rates, which underpin fixed mortgage rates, have stabilised amid expectations inflation is cooling. Nationwide is making reductions of up to 0.45% across selected two, three and five-year fixed products from tomorrow. It is also slashing mortgage rates on its two, three and five-year products for first-time buyers. Meanwhile, for remortgage customers, it is making reductions of up to 0.35% across selected two, three and five-year fixed loans. However, rates on its range of two-year tracker mortgages will increase by 0.25% after the recent base rate rise. Tracker mortgages are different to fixed-rate mortgages in that they rise and fall in line with the BoE's base rate. Last week, Santander and Coventry Building Society also started hiking its tracker mortgages by up to 0.50%. It comes){kind=link}
A NUMBER of big lenders are set to slash mortgage rates despite the Bank of England’s (BoE) recent base rate hike.
Nationwide, HSBC and TSB are poised to make reductions on their products from tomorrow.
Nationwide Building Society is reducing some of its fixed-rate mortgages by up to 0.55%.
Meanwhile, HSBC is expected to cut rates on its residential mortgages, although the bank is yet to offer specific details.
Plus, TSB is slashing rates on selected five-year fixed mortgages by up to 0.40%, with rates starting from 5.44%.