logo
倫敦 icon
icon 倫敦 icon
新聞與資訊
UK Banks Lower Mortgage Rates to Lowest Levels Since 2015
一月 12, 2024
UK Banks Lower Mortgage Rates to Lowest Levels Since 2015 倫敦
By   Internet
  • 城市報
  • UK house prices
  • mortgage rates
  • UK housing market
Abstract: According to recent reports, UK banks are poised to further lower mortgage rates this week, bringing them to the lowest levels since 2015. This move is expected to further alleviate the cost of housing loans, offering increased financial support to homebuyers.

Co-op Bank has announced a reduction of mortgage rates by up to 1.26 percentage points, introducing a two-year fixed-rate mortgage for existing customers at 3.85%. This marks the first time in 15 months that a two-year mid-rate has fallen below 4%. Additionally, they have launched a five-year optimal fixed-rate at 3.84%.


In the preceding week, several major banks in the UK had already made substantial interest rate cuts, resulting in the average mortgage rate dropping to the lowest levels since June 6.


In addition to Co-op Bank, other lending institutions, including Atom Bank, First Direct, TSB, and Leeds Building Society, have also lowered rates. It is anticipated that other major banks like Barclays, Nationwide Building Society, and Santander will follow suit this week.


According to data from financial data analytics firm Moneyfacts, the average two-year fixed-rate has decreased from 6.04% in early December to 5.83% last Friday, and the average five-year fixed-rate has dropped from 5.65% to 5.46%.

UK Banks Lower Mortgage Rates to Lowest Levels Since 2015

These new lower rates will assist in alleviating concerns for many individuals looking to escape high-interest home loans. According to data from the UK Finance, around 1.6 million homeowners will face the expiration of existing mortgage deals this year. While they still face the prospect of paying more interest, this round of rate cuts will mitigate some of the impact.


Furthermore, the decline in mortgage rates is likely to ease pressure on further declines in house prices. Halifax reported a 1.1% year-on-year increase in house prices in December, showing signs of a recovery for the third consecutive month.


The Bank of England also stated that the approval of mortgages for new homes rose for the third consecutive month in November, as the reduction in mortgage rates since September attracted more buyers.


These series of rate cuts are in response to changes in the current economic situation and market demand. With the relatively smaller size of the mortgage market, banks need to further reduce rates to attract more homebuyers. Additionally, it is anticipated that the Bank of England will reduce benchmark rates in the near future due to rapidly declining inflation.


However, it is not expected that mortgage rates will further significantly decrease, as current rates are already close to the future expected levels of the Bank of England's benchmark rate. Banks typically price their fixed-rate deals based on the benchmark rate.

留言
icon
請輸入您的國籍
+87
不能為空
電子郵件地址無效 電子郵件地址未驗證!
icon
歡迎訪問 House.com
登錄或註冊以充分利用您的體驗。這也將增加您與經紀人交流的機會。
請輸入有效的電子郵件地址。
繼續使用 Google
提交即表示我接受House.com的   使用條款
icon icon
驗證您的電子郵件
你好 我們剛剛將驗證碼發送到您的電子郵件中。 請檢查並在此處輸入驗證碼以繼續登入。
驗證碼錯誤
沒有收到電子郵件? 請檢查您的垃圾郵件資料夾
icon
banner
UK Banks Lower Mortgage Rates to Lowest Levels Since 2015
icon 複製鏈接
icon WhatsApp
icon Facebook
icon Twitter