Ahead of tomorrow’s base rate decision, both NatWest and Virgin Money have announced reductions to their range of fixed rates, with Virgin also launching a number of exclusive deals for those looking to remortgage (NatWest changes top, Virgin changes bottom screengrab).
There are cuts for BTL and Product Transfers for Virgin, too. Newspage asked brokers for their thoughts.
Stephen Perkins,ย Managing Directorย atย Yellow Brick Mortgages:ย “Hopefully these reductions are the aperitif ahead of the main course, a base rate reduction, by the Monetary Policy Committee tomorrow. The odds look good, and the economy needs it, but the Bank of England often disappoints.”
Ken James,ย Directorย atย Contractor Mortgage Services:ย “Rate cuts are always welcome but I do wonder if lenders are running out of steam, with small cuts all the fashion these days and big rate cuts left on the back burner.
“The sentiment from many in the mortgage market is that a 0.25% base rate cut is highly probable. What we really need though is a shock to the system such as a 0.5% rate cut.
“This would go a long way to boosting optimism among borrowers. Lenders’ reaction to any cut may be slow to come through, though, as I believe they have already priced a reduction into their current lending models. All eyes are now firmly set on Thursday at midday.”
Hannah Bashford,ย Directorย atย Model Financial Solutions:ย “Ooh Aah just a little bit, Ooh Aah a little bit more: it seems lenders are taking a leaf out of Gina Gโs book and slowly reducing rates.
“Although this is great, instead of tinkering around we could do with some decent reductions to reignite the market. This does look positive for a rate reduction tomorrow, though.”
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