Customers have been provided with ‘positive’ news however brokers have urged them to act fast as ‘changes could happen quickly’
Customers have been told to act quickly if they want to take advantage of the ‘positive’ news(Image: PixeloneStocker via Getty Images)
NatWest, Barclays and TSB have all provided new updates for customers on Wednesday.
They unveiled additional mortgage rate cuts, with brokers describing the move as “positive news” — particularly as swap rates, used to determine fixed-rate mortgage pricing, have increased in recent days, reports MirrorOnline.
Brokers are urging borrowers to capitalise on the reductions, “as you never know what may change or how quickly” amid ongoing market volatility driven by the war in the Middle East.
READ MORE: Major bank announces new £600 bonus offer for UK customers
Get breaking news on BirminghamLive WhatsApp, click the link to join
On Wednesday, NatWest announced reductions of up to 0.19%, Barclays slashed rates by as much as 0.18%, while TSB cut theirs by up to 0.35%.
Although Barclays did raise certain selected rates, brokers suggested this was mainly about managing business volumes.
This week’s reductions come after a wave of major lenders lowering their rates the previous week.
Justin Moy, managing director at Chelmsford-based EHF Mortgages, called the developments “positive”, particularly given that swap rates had actually edged upwards slightly this week.
He said: “People need to take advantage of this improved pricing, as you never know what may change or how quickly.”
Omer Mehmet, managing director at Welling-based Trinity Finance, echoed this sentiment: “It’s encouraging to see lenders continue to cut rates, which suggests they’re hungry for business after a far quieter March and April than usual due to the war.
“But borrowers should not believe that the only way for rates now is down, as markets can move very quickly and rates could be rising again before you know it.”
Andrew Montlake, CEO at London-based Coreco, also cautioned that the market backdrop remained uncertain.
He said: “It’s great to see these cuts today, but there is still a lot of uncertainty among lenders and rates could rise again very quickly subject to events in the Middle East.
“But for now, more cuts will be welcomed by borrowers.”
Emma Jones, managing director at Runcorn-based Whenthebanksaysno.co.uk, said people needed to be agile and ready to act, given that the shelf-life of mortgages had been so short recently.
She said: “A week or two ago, it was revealed that the average shelf-life of a mortgage was just eight days, which shows how important it is for people to act when good rates become available.
“Competitive rates can come and go in the blink of an eye.”
Matthew Fleming-Duffy, founder of Harbour Home Finance, said: “For borrowers, this is a reminder that the ‘best rate’ is a moving target.
“These constant shifts highlight why good advice and timing are key, because the cheapest deal today may not be there tomorrow.”