NatWest Group PLC (LSE:NWG) and Virgin Money UK PLC (LSE:VMUK) have cut mortgage rates ahead of the Bank of England’s latest decision on interest rates.
Cuts of up to 0.15% and 0.31% were announced respectively by the lenders before the central bank’s decision on Thursday.
For NatWest, this has left the bank offering 4.03% interest on a five-year fixed deal and comes after rival lenders Nationwide and Santander cut rates over the past week.
Virgin’s cuts come alongside a range of exclusive offers aimed at those wanting to remortgage, with rates across the market having climbed earlier in the year before falling more recently.
Members of the Bank of England’s Monetary Policy Committee will vote on whether to change base interest from a 16-year high of 5.25% on Thursday, though markets are split over what decision will be taken.
“Economists are divided on what will happen,” Bestinvest analyst Alice Haine commented. “It will be an ultra-close call of five to four either in favour of a rate cut or for the headline rate to remain unchanged.”
According to comparison website Moneyfacts, average rates on two-year fixed mortgages sat at 5.78% on Wednesday, down from 5.97% in late June.
“It may not take major mortgage rate changes to spark more interest from buyers,” Hargreaves Lansdown analyst Sarah Coles added.
“Sentiment plays an enormous role in this market, and the moment when rates are first cut is likely to provide a boost for buyers.”