More big lenders join major banks in dropping mortgage rates as competition returns to market

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More mortgage lenders have announced cuts to their fixed rate deals in the latest signal that the market may be improving for borrowers CallumCMason reports:

Nick Mendes, mortgage technical manager at John Charcol brokers, said it would take a few months before the market would see any “substantial” decreases in fixed rate pricing.

“We should expect to see small reductions over the next few weeks before we see lenders starting to competing with one another again,” he said Yesterday, mortgage brokers said that higher falls in rates could be seen if inflation data next week was positive. David Hollingworth, of L&C Mortgages, said that if the figure announced next Wednesday was lower than expected, this might lead to mortgage deals dropping further, on the expectation that the“While the pace of change isn’t rapid, we’re seeing a few rates tweaked and coming down. Usually, most reprices from lenders are going downwards at the moment, it’s rarer to see lenders repricing upwards”, he said.

may be close to or at its peak may be needed for significant falls to occur and lower-than-expected inflation data might trigger this, as the Bank generally ups rates in order to lower inflation.

 

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