Nationwide, Virgin Money, BM Solutions and Halifax have moved to cut mortgage rates, as independent mortgage brokerage John Charcol said sub-4% SONIA swaps were giving lenders “genuine room to compete for business”.
Mortgage repricing has gathered pace after short and medium-term SONIA swaps fell below 4%, giving lenders more room to compete for business.
Nationwide is reducing fixed rates by up to 0.19% and tracker rates by up to 0.12%, effective from tomorrow.
Virgin Money is also cutting selected products, with reductions of up to 0.16% on 2-year fixed remortgage rates, while BM Solutions and Halifax are reducing core range rates by up to 0.15% from Tuesday.
Halifax is also adding a 0.20% discount for Lloyds Premier customers.
Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol, said: “Nationwide is leading the way with cuts of up to 0.19% on fixed and 0.12% on trackers, effective tomorrow.
“Meanwhile, Virgin Money is moving in the same direction, with up to 0.16% off remortgage 2-year fixed rates. BM Solutions and Halifax are also both trimming up to 0.15% on their core ranges from Tuesday too, and Halifax are layering in a 0.20% discount for Lloyds Premier customers on top.
“The big story in the swap market is that one-to-five-year SONIA swaps are now all sitting below 4%, with two-year at 3.913% and five-year at 3.999%, down from 4.159% and 4.176% respectively in early June.
“That’s a hugely positive signal for the market. Sub-4% funding across the short and medium end gives lenders genuine room to compete for business, and today’s cuts of 0.10% to 0.19% show exactly that playing out, with arguably a little more to come if swaps hold at these levels.
“Six lenders repricing inside 24 hours tells you nobody wants to be left looking expensive going into the second half of the year, particularly with remortgage volumes picking up.
“The Coventry is the outlier, nudging some residential fixed rates up while cutting BTL, which shows it’s not a uniform race to the bottom.
“For borrowers, the message is simple. Trying to time the absolute bottom of the market is impossible, and waiting for rates to fall further can easily cost more than it saves.
“Anyone remortgaging should secure a rate now, as most lenders will let you switch to a lower deal if pricing improves before completion, so you get the protection without losing the upside.
“For buyers, if you see a property, you like and it’s affordable, don’t delay. Holding off in the hope of a slightly cheaper rate risks missing out on the right home altogether, and that disappointment tends to outlast any small saving on the rate.”