Lenders herald new year with rate cuts


The January sales haven’t just hit the high street as a number of lenders have reduced their mortgage pricing in the past few days. Barclays launched a two-year fix pegged at 1.28 per cent with £999 fee for borrowers requiring a maximum loan-to-value (LTV) of 50 per cent, while the lender also reduced a number of other fixed-rate deals, including a two-year fix pegged at 1.65 per cent for those borrowing 85 per cent LTV.

Meanwhile, Yorkshire Building Society has launched a market-leading five-year fix pegged at 2.03 per cent for those borrowing 85 per cent LTV, with a £995 fee. Accord has launched some discounted standard variable rates while Leeds Building Society has added some new mortgages with £1,000 cutback to its Help to Buy range.

Despite a quarter-point increase in Bank of England base rate in November, mortgage deals show no sign of getting more expensive, which is great news for borrowers. With £28 billion of mortgages expected to mature in the first half of this year, according to Virgin Money, lenders are keen to lend and attract some of that business with some tempting deals. This is great news for borrowers, who should seek advice from an independent mortgage broker to ensure they get the right deal for their circumstances.

Adrian Anderson
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Adrian Anderson