More lenders cut mortgage rates: Natwest cuts interest by up to 0.6% on some deals as homeowners’ borrowing costs continue to fall
- Natwest is now offering a 5-year flat deal for 5.38%, down from 5.98%.
- Lenders including HSBC and Virgin Money have also cut interest rates
- The cost of borrowing has fallen since Liz Truss’ resignation and gold yields have fallen
NatWest and Darlington Building Society are among the latest lenders to update their mortgage rates, with NatWest cutting rates by up to 0.6 per cent.
Big lenders have begun lowering mortgage rates, after the micro budget lifted them up and added hundreds of pounds to some homeowners’ bills.
Earlier in the week, HSBC and Virgin Money products were re-priced, reducing the cost of borrowing.
For existing customers, Natwest cut its deposit rate by 25 percent, and the five-year fixed rate by 0.6 percent, from 5.98 percent to 5.38 percent.
Concerns: Rising borrowing costs have led to fears of a subprime mortgage crisis as those with fixed-term deals will have to remortgage
The same product for borrowers with 40 percent deposits also fell 0.6 percent from 6.20 percent to 5.60 percent.
On a £200,000 mortgage, a rate reduction for 25-year borrowers would save £73 a month or £876 a year.
The bank has also lowered several of its rates on fixed deals for two years. For a 40 percent deposit deal, it fell 0.43 percent from 6.09 percent to 5.66 percent.
The drop means the product is now £53 a month cheaper or £636 less a year on a £200,000 mortgage taken out over 25 years.
Darlington Construction has also re-entered the fixed-price market with products for new and existing customers.
The Building Society is offering 6.09 per cent fixed rate for five years to those with 10 per cent deposits, at a cost of £1,105 per month against a £170,000 mortgage.
Existing customers can take out a two year flat rate of 6.04 per cent with a 40 per cent deposit, costing £776.09 per month on a £120.00 mortgage.
Chris Brown, Director of Product and Marketing for Darlington Construction said: “Darlington Construction is doubling down on its commitment to the mortgage market by reintroducing fixed rate mortgages, after remaining in the market with a range of variable rate options.
We know this is a difficult time for buyers right now, and we hope that bringing fixed rate mortgages back into the market will provide reassurance and additional options for those looking to buy their home or remortgage to the community.
In addition, all of our borrowers who apply for a mortgage continue to have their circumstances considered by a person, not a computer.
The average two-year fixed interest rate across all deposit sizes is now 6.48 percent, down from 6.65 percent last week, according to Moneyfacts.
The five-year average for repairs also fell to 6.34 percent from 6.43 percent in a few days.
Earlier in the week, Accord confirmed that it had reduced rates for 5 percent deposit products by up to 0.52 percent, and rates for 10 percent deposit products by up to 0.53 percent.
Higher deposit products are set to drop slightly by 15 percent and 25 percent by as much as 0.35 percent.
The lender also launched a ten-year fixed-term product.
ads