by Sam Akbay
Lenders Cut Mortgage Rates Ahead of Bank of England Decision
The mortgage market is seeing fresh movement as Barclays and Coventry Building Society have reduced their mortgage rates ahead of the Bank of England’s upcoming interest rate decision on Thursday, 8th February. With policymakers widely expected to announce a cut in the base rate, lenders are making adjustments in anticipation of lower borrowing costs.
Barclays and Coventry Building Society Lead the Way
Barclays has made significant changes to its mortgage offerings, cutting rates on selected home purchase and remortgage products. Additionally, the bank has introduced new rates for borrowers looking to buy energy-efficient homes, with deals starting from 4.13%.
For those seeking flexibility, Barclays has also launched a two-year tracker mortgage at 5.24% with no product fee, providing an alternative for buyers who anticipate further rate reductions in the near future.
Similarly, Coventry Building Society has trimmed its fixed mortgage rates by up to 0.27%, offering more competitive deals for those looking to lock in a rate now.
A Potential Base Rate Cut on the Horizon
The latest mortgage rate reductions come as markets are pricing in an 84% probability of a Bank of England base rate cut this week, from 4.75% to 4.5%.
Chris Sykes, technical director at mortgage broker Private Finance, believes a base rate cut is highly likely, stating: “A lot is pointing towards a base rate cut later this week. It looks like things have settled down following all the worry in the bond market earlier this year, and the market expectations are a little more favourable than they were.”
While a base rate reduction may encourage further lender cuts, Sykes warns that the impact on mortgage rates may be minimal, as markets have already priced in much of the expected change.
What Does This Mean for Buyers and Homeowners?
For prospective homebuyers, this shift could create opportunities to secure better mortgage deals. If you’re considering purchasing a property or remortgaging, now may be the time to explore available options before lenders adjust rates again.
At Sam Akbay Property Agency, we are closely monitoring the mortgage landscape to provide our clients with up-to-date advice on securing the best possible financing. Whether you’re buying your first home, moving up the property ladder, or refinancing an existing property, our team is here to guide you through the process.
For expert property advice and guidance, get in touch with us today!
