A warning has been issued to anyone who holds an account with Santander, Nationwide, Lloyds and Barclays. Customers who currently have a mortgage, or are planning on taking out a mortgage, with any of the 'big four' banks are being urged to 'hold off' for the time being.
This is because each of the main banks are expected to follow in the footsteps of NatWest and HSBC and cut the rates of their mortgage deals in the coming days, making home ownership more affordable for their customers. It comes as NatWest has cut its mortgage rates for the second time this week with reductions of up to 0.30 percent for its new and existing customers.
Just last week, HSBC launched its first ever 40-year mortgage which is the maximum term available and the longest the bank has ever offered. The bank said its long-term mortgage could help lower monthly repayments and is available to a variety of applicants, including first-time buyers.
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Birmingham Live reports that Stephen Perkins, the managing director of the broker firm Yellow Brick Mortgages, said: “All these rate reductions are starting to feel like an avalanche. No doubt there will be more of these reductions over the week, as all lenders follow in a conga line.”
Lewis Shaw, the owner of the broker Shaw Financial Services, echoed: “There’s every chance we could see the remaining big four [Lloyds Banking Group, Barclays, Nationwide and Santander] come to the party this week, too.
“It would appear that lenders are struggling to get new business, and the rate tap is the only tool they can turn to.”
Nicholas Mendes, a mortgage technical manager at the broker John Charcol, said HSBC had
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