Some of the largest lenders including Barclays and Santander lower their mortgage rates

by Aaron Strutt

Oct 27 2022

Banks and building societies have reintroduced more fixed and tracker rate mortgages with some significantly improving their pricing.

Currently, many tracker mortgages are priced around 3%, while many fixes are priced between 5.10% and 6%. 

Barclays has announced new two and five-year fixed-rate mortgages plus tracker rate deals across its residential and buy-to-let ranges. In its latest mortgage reprice, the bank did not increase the price of any of its mortgages, which has not happened recently.  

Accord Mortgages lowered its most competitively priced rates by up to 0.35% and its 5% deposit rates by 0.52%. It also reintroduced a ten-year fixed-rate product and reduced some arrangement fees by £500 to £495. 

Santander has lowered selected new business fixed rates between 0.05% and 0.50% and all buy-to-let fixed rates by 0.05%. It pulled its 5% deposit two-year fixed rate but kept the equivalent two-year tracker and five-year fixes. 

Aaron Strutt, product director at Trinity Financial, says: “The funding costs have stabilized and even reduced since Rishi Sunak has been brought in as prime minister. Now that some of the bigger banks have lowered their rates others are likely to follow. 

 “If you are looking for the lowest headline rate, then there are tracker rates available that significantly undercut the lowest fixed rates. However, these will likely increase soon with the Bank of England base rate set to rise next week.” 

Have many other lenders improved their rates? 

More of the smaller lenders have lowered their rates or come back into the market.  

HSBC has lowered its tracker rates and improved its five-year fixed remortgage products. TSB is reducing rates on selected five-year fixed residential purchase products by up to 0.50%, providing stability of payments in the short to medium term. However, the bank is also increasing its three-year fix remortgage rates by 0.55%. 

Virgin Money for Intermediaries has also launched a range of broker-exclusive rates to which Trinity Financial has access.

Skipton for Intermediaries has confirmed rate reductions of up to 0.59% across its residential two-year fixed £995 fee products. Also, the reintroduction of its residential two-year fixed larger loans range.

Call Trinity Financial for expert mortgage advice on 020 7016 0790 or book a consultation