Barclays and Coventry Building Society have announced mortgage rate reductions ahead of the Bank of England’s anticipated interest rate cut on Thursday.
Barclays has cut rates on some of its mortgages for home buyers and people remortgaging, while also introducing new rates for borrowers purchasing energy efficient homes, with rates starting from 4.13%.
In addition, it has also launched a two-year tracker mortgage with a 5.24% cent with no product fee.
Meanwhile, Coventry Building Society has cut its fixed rates by up to 0.27%.
The changes by Barclays and Coventry Building Society come ahead of the next Bank of England interest rate decision taking place on Thursday.
Policymakers are expected to announce a reduction in interest rates on Thursday, from 4.75% to 4.5%, with markets pricing in an 84% chance of this cut.
“A lot is pointing towards a base rate cut later this week,’ said Chris Sykes, technical director at mortgage broker Private Finance.
“It looks like things have settled down following all the worry in the bond market early this year and the market expectations are a little more favourable than they were,” he added. “If base rate reduces we’ll likely see some further reductions, but not by much as it is already priced in.”
Read the orginal article: https://propertyindustryeye.com/lenders-cut-mortgage-rates-ahead-of-bank-of-england-decision-on-thursday/
