Major Mortgage Lenders Slash Rates, Easing Burden for Borrowers

Barclays and Santander have cut mortgage rates by up to 0.82 percentage points, intensifying competition among lenders for those seeking new deals, particularly for remortgaging. This comes as relief for the 1.6 million borrowers with expiring fixed-rate deals, potentially easing the financial impact of transitioning into higher rates. The average rate for new two-year fixed mortgage deals has dropped to 5.76%, down about a percentage point from last year's peak, while the average rate for five-year deals is now 5.37%. However, forecasters still anticipate that relatively high mortgage rates may lead to decreased house prices and increased arrears this year.