Mortgages: Barclays and Santander cut rates as competition intensifies

Competition has intensified among mortgage lenders for people who are searching for a new deal, bringing some relief to those facing higher bills.

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Brokers say that some lenders now have better options for those remortgaging than for those buying a property.

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This will help people whose relatively cheap fixed-rate deal is coming to an end and are looking for a new one.

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Two major lenders, Barclays and Santander, have announced further significant cuts.

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The firms said they would reduce rates on some of their products on Wednesday by up to 0.82 percentage points.

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The interest rate on a fixed mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it. Doing nothing would leave people on a variable rate, which is very expensive - with an average rate of more than 8%.

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About 1.6 million existing borrowers have relatively cheap fixed-rate deals expiring this year. While their next deal is very likely to be more expensive, a series of cuts in rates by major lenders since the start of the year is set to ease some of that financial impact.

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OneAgency can point you in the right direction for mortgage advice. Get in touch today on 01782 970222 or send an email to hello@oneagencygroup.co.uk.