Mortgage rates fell slightly this week as lenders mulled the path of UK base interest ahead.
According to Moneyfacts, average two-year fixed mortgage rates sat at 5.3921% come Friday, against 5.4113% at the start of the week.
A string of major lenders had hiked rates last week, including Barclays PLC (LSE:BARC), NatWest Group PLC (LSE:NWG) and Lloyds Banking Group PLC (LSE:LLOY)’s Halifax.
NatWest was then among those to cut this week, while Halifax upped rates once again.
This comes against the backdrop of expectations for another 0.25% cut to base interest in the Bank of England’s next policy meeting in November.
Orchard Financial Advisors director Ben Perks noted NatWest had “thrown the cat among the pigeons” with its latest cut, which saw rates on selected two and five-year deals reduced by between 0.41% 0.2%.
“The message is clear; they will not be deterred from lending, they are not fearful of the upcoming Budget and they are very keen to lend in the last quarter of 2024. It's game on for borrowers.”