Market Update: Lenders cut mortgage rates & what this means for house buyers now!

11th January 2024

Buying a home is a significant financial decision, and one of the most important factors to consider is the mortgage rate. Recently, there has been some good news for homebuyers as two of the major lenders in the industry, Santander and Barclays, announced significant cuts to their mortgage rates meaning that rates are the lowest they have been in the last six months.

With banking giants like Halifax and HSBC also cutting their interest rates, it feels like a very needed break in the rocket-high inflation we have seen happen over the last few years following the pandemic, with rates rising 14 times in a row since December 2021.

It’s Good News All Round!

The good news is the Bank of England Base rate has consistently remained at 5.25% now since autumn of 2023. This has positively impacted the rate that lenders are offering with companies trying to offer the best rate they possibly can again each other.

We’re seeing competitive mortgage rates being offered for as little as 3.94% for a five-year fixed mortgage). The Guardian states that a High street lender has cut the price of its two-year fixed-rate re-mortgage from 5.64% to 4.81% on Tuesday.

This is a huge difference from the almost 6% mortgage rates available this time last year!

One High Street lender has reduced its two-year fixed rate mortgage to 4.44% down from 4.92% and is available to those with a 40% deposit. For those with a 25% deposit, the rate has been cut from 5.06% to 4.69%

Another High Street Lender has also made significant cuts to its mortgage rates, with its two-year fixed-rate mortgage now available at 4.17% down from 4.62% for anyone with 60% Loan to Value with a fee of £899. The bank has also reduced the rates on its five-year fixed-rate mortgages, with the rate for those with a 40% deposit now standing at 4.10%.

These rate cuts are good news for homebuyers as they offer the opportunity to lock in a lower rate and potentially save thousands of pounds over the life of the mortgage.

Overall, the recent rate cuts from Santander and Barclays are positive news for homebuyers and homeowners alike. While it is important to consider all factors when choosing a mortgage, a lower rate can make a significant difference to the affordability of a home.

So, What Would Your Mortgage Look Like Monthly Now?

With the help of our recommended expert mortgage advisors at New Homes Mortgage Services LLP, we’ve been able to give you an accurate peek as to what our superb three bedroom Leighton at Augustus Fields would cost monthly with the Co-operative Bank 3.89% mortgage rate offer for their five-year fixed term mortgage:

£349,950 Purchase Price, with 40% Deposit (209,970) requiring a mortgage of £139,980 over 30 Years at 3.89% Fixed until 31/05/2029 with £999 product fee the monthly payment would be £660

Last year, you would have been looking at approximately £781† for the same home with the  mortgage rate hitting its highest of 5.34%.

Benefits of Using New Home Mortgage Services?

Not only do they offer expert mortgage advice that has been awarded the Gold Trusted Service Award 2023, but they also offer an exceptional Mortgage Rate Check service.

Mortgage Rate Check provides you with the confidence that they will switch you to a lower rate if one becomes available. If interest rates improve before your mortgage is completed, you can call your dedicated mortgage adviser for a Mortgage Rate Check.

If you qualify for a more suitable deal and it’s right for your circumstances, we’ll switch you to the lower rate and the best part is you can use their Mortgage Rate Check whether you are a first-time buyer, moving home, or remortgaging. This service is 100% fee free, Third-party fees may apply.

To find our more or to get in touch with New Homes Mortgage Services LLP head to their website:  or telephone on 01543 629 077.

What’s your next step?

If you wish to start your homebuying journey with Walton Homes, we have mortgage advisers readily available to work with you to find the best possible deal on the market.

So discover our available homes today or visit any of our Marketing Suites for further information and advice.

  • Acresford Park – Handsacre, Lichfield, WS15 4HH
  • Augustus Fields – Cheadle, Staffordshire, ST10 1AP
  • Alverton View – Alton, Staffordshire, ST10 4AS
  • Woodwinds – Warton, Tamworth, B79 0HR
*Representative Example: A mortgage of £139,980  payable over 30 years, initially on a fixed rate for 5 years at 3.89% and then on a variable rate of 8.12% for the remaining 25 years would require 60 payments of £659.44 and 300 payments of £981.77. The total amount payable would be £333,657 made up of the loan amount plus interest (£139,980) and fees (£1099). The overall cost for comparison is 6.6% APRC representative.

Products available at time of send on Wednesday 10th January 2024. This rate is based on a loan to value of 60% for a £139,980 mortgage and subject to a successful credit check at point of application.

†Calculated using on a Capital Repayment mortgage over 30 years at 5.34% as an example of mortgage rates in 2022. For illustrative purposes only.

**Please note that New Homes Mortgage Services LLP and Walton Homes Ltd are two distinct entities and we do not benefit directly from New Homes Mortgage Services LLP. This is not a paid-for advertisement and serves solely as information and in our customer’s best interest.**