Mortgage Lenders Boost Market with Post-Budget Rate Cuts

In a significant move to energize the housing market, leading lenders including Nationwide, Halifax, and Virgin Money have announced mortgage rate cuts. These reductions follow the recent Autumn Budget delivered by Chancellor Rachel Reeves, which left many homeowners feeling less optimistic.

Mortgage Rate Cuts from Major Lenders

Nationwide confirmed it would lower fixed-rate mortgages by up to 0.19%. The new lowest rate stands at 3.60%. This rate is available for customers moving home with a minimum of 40% equity. This two-year fixed deal carries a fee of £1,499.

For those with smaller deposits, Nationwide offers a newly priced five-year fixed rate at 75% loan-to-value (LTV) with a rate of 3.99% and no upfront fee. Additionally, there is another five-year option at an 85% LTV with a 3.96% rate, which includes a £1,499 fee.

Other Lenders Join the Trend

• Virgin Money: Cut selected rates by up to 0.19%.
• Halifax: Reduced rates by up to 0.2% on selected three-year fixed mortgages for buyers with less than a 10% deposit.

Omer Mehmet, managing director at Trinity Finance, noted that businesses have been adversely affected by the Budget. He mentioned that fluctuating swap rates had led to lenders adjusting their mortgage prices. Mehmet expressed optimism, stating that lenders are incentivizing market activity following a prolonged quiet period.

Market Sentiment Shifts Post-Budget

Ken James, Director at Contractor Mortgage Services, acknowledged that the recent Budget brought a sense of clarity, influencing a market shift. According to James, the easing of uncertainty is fostering renewed hope among potential borrowers.

He remarked, “With the dust settling on the Autumn Budget 2025, the mood of the UK mortgage market is shifting.” This change could translate into favorable conditions for homeowners and those considering remortgaging, providing much-needed relief as rates had been persistently high throughout the year.

The Impact of Rate Cuts on Borrowers

These mortgage rate reductions could greatly benefit those seeking to purchase homes. In a market where each rate cut matters, these adjustments are poised to make a considerable impact on monthly repayments. As several lenders react to the Budget’s outcomes, potential buyers may find this an opportune moment in the housing landscape.