Mortgage Rates Plummet as Lenders Compete, Bank of England and ECB Rate Cuts Loom
Lenders are vying for more customers, with HSBC and Barclays recently slashing mortgage rates. The Bank of England's rate decision on 1 August could further influence the stock market today, while the European Central Bank (ECB) is set to announce its own rate cuts in the coming days.
Barclays kicked off the rate cuts on Tuesday, followed by HSBC's reductions set to take effect on Wednesday. These moves come as competition among lenders heats up, following a lull during the election campaign. Around 1.6 million borrowers will see their fixed-rate deals expire this year, potentially driving demand for new deals.
The average two-year fixed mortgage rate currently stands at 5.96%, with five-year deals at 5.53%. Despite these recent cuts, rates have been climbing due to reduced competition. The Bank of England's Monetary Policy Committee is expected to consider a rate cut at its next meeting, which could further stimulate the stock market today. The ECB is also poised to announce rate cuts in the near future to boost the lethargic market.
With lenders eager to attract more customers and central banks considering rate cuts, the mortgage market is set for further changes in the coming days and weeks. Borrowers should stay informed and consider reviewing their deals as rates continue to fluctuate.
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