Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

UK lenders step up mortgage price battle as inflation slows

By Iain Withers

LONDON (Reuters) – British lenders have accelerated price cuts on mortgages as competition intensifies, inflation slows and markets increase bets on future Bank of England (BoE) interest rate cuts.

Average rates on fixed-rate mortgage products have fallen by more than 0.5 percentage points since peaking in July, Moneyfacts data shows, even before the BoE starts to reduce the benchmark rate that underpins borrowing costs.

The latest inflation data on Wednesday showed price rises in Britain fell faster than expected in October, plunging to 4.6% from 6.7% the prior month, leading to further investor bets on BoE rate cuts next year.

HSBC became the latest lender to cut rates on Wednesday, by an average of 0.15 percentage points across its products, following similar moves by rivals Halifax, Virgin Money and Nationwide in recent days.

Mortgage brokers have seen a series of lenders reduce rates in the last few weeks to catch up with the overall shift in market-pricing on future rates, a spokesperson for broker John Charcol told Reuters.

The average two-year fixed rate mortgage was priced at 6.19% as of Wednesday, the Moneyfacts data showed, down from a peak this year of 6.86% on 26 July. The average five-year rate was 5.79%, down from a peak of 6.37% on Aug. 2.

Some bank mortgage teams are also stepping up activity late in the year to try to meet year-end company targets, with many likely to be behind after a slump for the wider market, a consultant who advises lenders said, declining to be named because he was not authorised to speak on the issue.

While rate reductions will provide some relief to borrowers looking for new mortgage deals, the outlook for Britain’s housing market remains tough. The country’s inflation rate also remains high relative to most other developed economies.

Separate data on Wednesday showed UK house prices fell in annual terms in September for the first time since 2012, underlining the weak state of the property market.

Lender cuts to fixed mortgage rates are also unlikely to be matched by variable rates that closely track the BoE rate.

 

(Reporting by Iain Withers; editing by Sinead Cruise and Barbara Lewis)2023 11 15T142019Z 1 LYNXMPEJAE0N2 RTROPTP 4 BRITAIN HOUSEPRICES RICS - Finance Digest │ Financial Literacy │ Financial Planning

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts