Skip to main content

The UK’s annual inflation rate fell sharply to 4.6% in October, its lowest level for two years.

As a result, in a promising turn of events for aspiring homeowners, some of the UK’s major lenders have recently announced significant mortgage rate cuts, expanding choices for borrowers eyeing deals under the 5 per cent mark.

First Direct has taken the lead with rate cuts of up to 0.40 percentage points, while Halifax is set to reduce its mortgage rates by up to 0.46 percentage points. Noteworthy among these reductions is a 0.24 percentage point cut on a five-year fix for borrowers with a 10 per cent deposit, bringing the rate down to an attractive 4.97 per cent. Halifax is also slashing the rate on a five-year fix for those with a 40 per cent deposit by 0.20 percentage points, offering a competitive rate of 4.53 per cent. Both deals come with a £999 fee.

Anticipation is building as HSBC UK is expected to follow suit with widespread reductions to its mortgage rates soon, further enhancing the array of options available to potential homebuyers.

First Direct’s commitment to affordability is evident with its most substantial rate cuts since February. The bank has also introduced two new mortgages tailored for borrowers with a 5 per cent deposit, including a five-year fixed-rate deal with a 40 per cent deposit at an enticing rate of 4.74 per cent.

In an intriguing twist, Perenna, a recently authorized bank, has entered the market with fixed-rate loans of up to 40 years. While rates start at 5.75 per cent, slightly higher than conventional deals, Perenna’s unique offering allows homebuyers to borrow up to six times their salary. Despite the marginally higher rates, this innovative approach aims to attract customers, particularly first-time buyers facing challenges posed by soaring house prices and expensive mortgages.

In summary, the current mortgage market landscape presents a wealth of opportunities for potential homebuyers. With rate cuts from established lenders and the entry of innovative players like Perenna, the path to homeownership is becoming more accessible. As an Estate Agent, our advice to prospective buyers is to seize these opportunities, explore the diverse choices available or at the very least, keep an eye on them.

If we can help you with this then let us know. We do work with a local mortgage advisor that covers the whole market who will find the best rates unique to you.