- Santander is reducing mortgage rates for borrowers with smaller deposits from Thursday, attributing the change to a fall in swap rates which lowers lenders' borrowing costs.
- The reductions include two-year fixed first-time buyer deals for those with 5% to 15% deposits, cut by up to 0.28 percentage points, and selected five-year fixed rates by up to 0.17 percentage points.
- TSB is also set to decrease some of its mortgage rates from Friday, with two-year fixed house purchase mortgages seeing reductions of up to 0.45 percentage points.
- Industry experts believe these moves by major lenders like Santander could signal the start of a broader market repricing, offering some relief to borrowers after a period of rising rates.
- Borrowers are advised to consider securing current deals and seeking professional advice, as market volatility and potential further rate changes mean the cheapest option today may not be so in a few weeks.
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