The General Election Results are in: What can we expect for the housing market going forward into 2025?

Jul 19, 2024

Mortgage Price War Heats Up: Barclays and HSBC Slash Rates – Is Now the Time to Buy?

Now that the UK General Election results are finally decided and a new PM is in situ, mortgage lenders seem to have relaxed about the future of inflation and interest rates are responding accordingly. A fierce mortgage price war is beginning between Britain’s biggest lenders, with Barclays and HSBC leading the charge by slashing interest rates. This is fantastic news for anyone looking to secure a new mortgage or remortgage their existing property.

Just last year, the dream of homeownership seemed distant, with 5-year fixed-rate mortgages averaging around 4.7%, pricing out many first time buyers. While recent developments offer a glimmer of hope, it’s essential to maintain perspective. Although the tide is turning, with the Bank of England hinting at potential interest rate cuts and lenders like Barclays and HSBC significantly dropping their fixed rates, it’s worth noting that mortgage rates have fluctuated considerably over the past year. In fact, more favourable rates were available earlier in the year. While the current outlook appears promising, with deals like Barclays’ 5-year fixed rate at 4.08%, we haven’t necessarily navigated all the hurdles yet.

Why the Price War?

There are a few factors at play here. Firstly, competition in the mortgage market is fierce. With several lenders vying for your business, they’re offering more competitive rates to stand out. Secondly, many are speculating that the Bank of England will cut interest rates, and it is prompting lenders to adjust their pricing strategies. By offering lower rates now, they can attract new customers and lock them into deals before any potential base rate changes.

Is Now the Time to Buy?

These low rates present a golden opportunity for those considering buying a home or remortgaging. With significantly lower monthly repayments, you could potentially afford a bigger property or free up extra cash in your budget. However, the decision ultimately depends on your individual circumstances. Consider factors like your long-term financial goals, property market outlook, and job security.

Advantage FS Can Help You Navigate the Market

While the current mortgage climate is exciting, navigating the different lenders and offers can be overwhelming. Here at Advantage FS, our experienced mortgage brokers can help you:

Compare deals from a wide range of lenders: We work with leading mortgage providers, ensuring you get access to the most competitive rates available.
Find the right mortgage product: We’ll take the time to understand your financial situation and recommend the best mortgage option for your needs.
Guide you through the application process: From initial enquiry to completion, we’ll be there every step of the way to ensure a smooth and stress-free experience.

Don’t miss out on this opportunity! Contact Advantage FS today for a free, no-obligation consultation.

https://www.mortgageable.co.uk/mortgages/history-of-mortgage-interest-rates/

https://www.uswitch.com/mortgages/5-year-fixed-rate-mortgages/

Steven Morris – Advising Director

CeMAP CeRER

Steve loves a complex mortgage. Most recently he has used his technical geekery to work his way up through Which? Mortgage Advisers, progressing to Senior Adviser and then Onboarding Manager. There, he was responsible for hiring, training and managing new advisers.

He also ran the monthly new starter inductions and wrote and maintained the telephony advice standards of the company. Outside of work Steve can be found coaching and being run ragged by his local under 10’s rugby team, Bristol Harlequins RFC.

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