Yorkshire Lenders Lower Fixed Mortgage Rates

In a recent move to attract borrowers, several banks have announced reductions in fixed mortgage rates, with notable offerings from major lenders. One bank is providing a five-year fixed remortgage rate at 4.89% for those with a 25% deposit, alongside a two-year equivalent deal at 5.34%. Additionally, a five-year fixed rate for home purchases is available at 4.14% with a £999 fee for borrowers at 60% loan-to-value (LTV). The lender has also introduced a five-year home purchase deal at 4.67% for those with a 25% deposit, reflecting a reduction of up to 0.2 percentage points across various deals. HSBC has also joined the trend, cutting its fixed-rate offerings by up to 0.14 percentage points. The bank now offers a five-year fixed rate for home purchases at 4.22% for borrowers with a 40% cash deposit. This wave of rate cuts comes as lenders respond to increasing competition and the anticipation of a potential interest rate cut by the Bank of England, expected as early as August 1. NatWest has also adjusted its rates ahead of the Bank of England's announcement, with reductions of up to 0.17 percentage points on fixed-rate deals. However, some rates will see increases, particularly for high LTV deals. Barclays has similarly adjusted its rates, raising its two-year fixed rate for purchases while slightly reducing rates on other five-year fixed options. As the market evolves, more lenders are expected to follow suit with further rate cuts, driven by positive inflation news and the likelihood of a Bank of England interest rate reduction.