Un important établissement bancaire, Santander, a abaissé ses taux hypothécaires, réduisant jusqu’à 0,36 % tous ses taux de prêts résidentiels, de nouveaux logements et de location. Cette décision survient après une baisse de la livre sterling et une augmentation des rendements obligataires suite au Budget d’automne. Tandis que certains prêteurs de rue augmentent leurs taux, les experts estiment que les taux d’hypothèque devraient continuer à baisser, avec des ajustements anticipés dans les semaines à venir.
In response to market fluctuations following the latest Budget announcement, a prominent bank has lowered its mortgage rates.
Santander has decreased its residential, new build, and buy-to-let mortgage rates by as much as 0.36%.
These reductions apply to fixed-rate mortgages for home buyers and those looking to remortgage, including options for green, new build, and buy-to-let properties.
As a result, some rates now begin at 3.85%.
This decision follows a sharp decline in the value of the pound, a drop in UK stock markets, and a spike in gilt yields after the Autumn Budget was revealed yesterday.
Gilts, or government bonds, experience rising yields, indicating a heightened cost of borrowing for the government.
The yields on gilts directly influence swap rates, which are based on market expectations of future interest rates.
Typically, fixed-rate mortgage offerings from banks are aligned with swap rates, meaning changes in gilt yields affect mortgage pricing.
The Office for Budget Responsibility (OBR) has unsettled investors with its forecast that inflation will remain persistently above 2%.
This expectation is likely to delay the Bank of England’s ability to decrease interest rates as quickly as previously anticipated.
Current interest rates in the UK stand at 5%. This rate, which banks utilize to set mortgage and loan interest, was cut from 5.25% in August and held steady in September.
Analysts note that while the surge in bond yields is cause for concern, it does not yet compare to the severe market turmoil seen during Liz Truss’s administration, since bonds were trading at higher levels beforehand.
Amid these market shifts, Santander has moved forward with its mortgage rate reductions.
Graham Sellar, head of mortgage development at Santander, commented, ‘In light of the uncertainty surrounding mortgage pricing, it’s encouraging to provide borrowers with lower rates across our residential, new build, and buy-to-let mortgage offerings.’
However, not all lenders are following suit.
Virgin Money has announced an increase in its mortgage rates by up to 0.15%.
Brokers indicate that it is still too soon to determine if this indicates a broader trend.
At the same time as Santander’s announcement, Accord Mortgages also revealed rate cuts.
MPowered and LiveMore have informed brokers that they are withdrawing certain products today in response to rising swap rates amidst the market’s reaction to the Budget.
MPowered stated: “Given the rise in swap rates, we’ll be revising our fixed-rate products at 5.30pm on Friday, November 1.”
Expert Opinions
Swap rates will provide insight into future movements ahead of the Bank of England’s base rate decision next week.
There was an initial rise in swap rates on Wednesday following the Budget announcement.
Ben Perks, managing director of Orchard Financial Advisers, noted, « Santander’s reductions were likely accounted for prior to the Budget, and it’s a positive sign that the announcement didn’t deter them.
As long as swap rates don’t spike dramatically, we can expect more lenders to lower rates in the upcoming weeks. »
Nicholas Mendes from John Charcol remarked, « The OBR report is intriguing, yet multiple factors are still unfolding. While it highlights crucial inflation points that could affect future bank rate movements, uncertainties remain. »
He added that the forthcoming Monetary Policy Committee (MPC) meeting on November 7 could be ‘especially significant’.
The Bank of England convenes approximately every six weeks to vote on whether to raise, maintain, or lower the base rate, which consequently affects loans, savings, and mortgages.
The outcomes are significant not only for the voting dynamics among members but also for the insights shared in the meeting minutes.
Mendes mentioned, « Recent forecasts have slightly lowered expectations for a rate cut in December, yet the market still anticipates reductions commencing in February 2025. »
He noted, « Historically, the market reacts quickly before stabilizing, often regaining optimism. This is why brokers and lenders are vigilantly observing market conditions to adjust mortgage rates accordingly in the coming weeks. »
Implications for Your Mortgage
Interest rates are anticipated to decline in the medium term, though possibly at a slower pace than before, according to Mendes.
He stated