Mortgage lenders slash rates leading to increased buyer activity
Two major high street lenders, Nationwide and Santander, have this this recently announced new rate cuts with Nationwide reducing their fixed term products by up to 0.4% and Santander by up to 0.2%.
Nationwide have made these cuts from 23rd August on selected 2, 3 and 5 year fixed rates up to 95% loan to value (LTV). The specific deals now available include a 5.39% 5 year fixed rate at 60% LTV, a 5.89% 3 year fixed rate at 75% LTV and a 5.94% 2 year fixed rate at 60% LTV. In addition to this, Nationwide will be reducing rate for ‘first time buyers’ by up to 35% and also by 0.15% for any clients looking to remortgage, both across selected 2, 3 and 5 year products. They have also announced that they will be reducing rates by 0.40% for any existing customers looking to move home and by 0.10% for anyone looking to just switch Nationwide mortgager products or for any additional borrowing.
Santander have also announced recently that they are reducing their rates again, this time by 0.2% on certain selected products, which comes only one week after their previous reduction of up to 0.29% last week. In addition, they have just launched a new range of rates available for ‘first time buyers’ only, which start from 5.41% with £500 cashback. Amongst their latest deals, they have fixed term products available from 5.2% on a 5 year fixed rate with a 75% LTV. Their cheapest 2 year fixed deal is now down from 6.09% to 5.99% with a 85% LTV.
Antony Ludkins, Sales Director at Sandersons, says:
"It’s very positive news that lenders are continuing to reduce their rates, despite recent increases in the Bank of England Base Rate. This shows signs that the economic conditions continue to stabilise which should in turn also provide more confidence in the property market. We have already seen an increase in buyer activity in recent weeks, with a significant increase in both viewings and sales across the Sandersons Sales offices.
This increased buyer activity has also come in August, which is a notoriously quieter month with the children being off school and it being peak holiday season. Therefore, we’re hopeful that the confidence levels in the market will continue to grow as we move into September and the latter stages of the calendar year."
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