Some lenders lower rates in run up to the Budget

by Aaron Strutt

Oct 28 2024

Some mortgage lenders have reversed their recent price hikes in the run-up to the Budget.

NatWest for Intermediaries lowered its property purchase and remortgage rates by up to 0.41%, meaning the bank has sub-4% two-year and five-year fixed rates. Barclays has also lowered its mortgage pricing, so it has sub-4% rates again.

Trinity Financial’s Director Anthony Emmerson wrote the latest Winkworth blog and highlighted that despite the almost constant mortgage rate changes, there is still a strong demand for property.

He explained that our brokers have been busy arranging agreements in principle. He says buyers still want to know they are in a good position to purchase a new home, although this is likely to happen after the chancellor announces the budget.

Labour Budget

Sir Keir Starmer gave a speech to prepare the ground for Wednesday's Budget, saying Britain "must embrace the harsh light of fiscal reality". He warned that the country is facing "unprecedented circumstances" but his government is taking decisions that will "prevent devastating austerity."

The government has announced a housing package that will deliver up to 5,000 new affordable social homes, with £500 million in new funding for the Affordable Homes Programme. 

According to a leading Macroeconomics firm, Racheal Reeves’ fiscal rule tweak was set to be seen as credible, avoiding a larger sovereign risk premium being priced into UK assets. However, looser fiscal policy will keep the Bank of England base rate 0.25 to 0.50 higher than it would otherwise have been.

Call Trinity Financial on 020 7016 0790 to secure a  mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

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