mortgage rate cuts offer relief to homeowners

Homeowners have received some good news after several of the UK’s top lenders cut interest rates on fixed mortgage deals.

The Halifax announced that it will reduce rates on its fixed-rate deals by 0.71 per cent from August 11^th, which means those on a five-year rate of 6.10 percent will see this drop to 5.39 per cent.

Elsewhere, the Nationwide and TSB have also announced reductions on fixed-rate deals by 0.55 per cent and 0.4 per cent respectively. with other high street lenders likely to follow suit.

Ben Furnell of Furnell Residential said: “These rate reductions will come as a welcome relief to homeowners who are looking to renegotiate their mortgage between now and the end of the year.

“It could be the start of a price war as lenders try to stimulate the market and generate business amidst the current climate of economic uncertainty.”

Meanwhile house prices have seen the most widespread falls since 2009 and sales in July fell at the fastest pace since April 2020 when the market was hit by the COVID pandemic, according to RICS.

“It is certainly a buyers’ market” commented Ben Furnell. ”We advise clients to be realistic with their price expectations and not go in too high to put perspective buyers off. There are still buyers out there but and there will always be interest in the high  quality stock we handle, but buyers certainly have the upper hand given current market conditions.”

Furnell Residential is a family owned estate agency covering North Leeds, Wetherby, York, Harrogate and surrounding areas.