Mortgage rates cuts have been announced by Barclays and Santander, providing a further boost to the housing market.
The two household lenders announced significant reductions to their fixed rates, hot on the heels of similar cuts by HSBC and Halifax last week.
Fixed deals by these lenders are now available with interest rates around the 4% mark – a significant improvement on 2023 when eyewatering rates of between 5% and 7% contributed to the financial pressures on homeowners and acted as a deterrent to first-time buyers.
The fact that we are seeing such significant drops at the beginning of 2024 is extremely promising and is likely to give the housing market a welcome boost.
The introduction of more competitive rates will give people who are keen to move or to get on the housing ladder the confidence to press ahead with their plans free from the fear of their dreams being shattered by spiralling interest rates.
If you are coming to the end of your fixed rate or are on a standard variable rate or tracker mortgage, it could be worth exploring some of the more favourable rates that are becoming available. Similarly, if you are considering a move but have previously been put off by the interest rate rises, now is a good time to revisit your plans.