The ‘rate war in the market starts afresh again this week’

HSBC has set the tone for the market with a full repertoire of rate cuts for new and existing borrowers, starting from Tuesday 23rd July.

Newspage asked brokers if we are due another set of rate cuts from the high street lenders this week, following on from previous weeks. Are these cuts from lenders another indication that base rate cuts are just around the corner?

Elliot Culley, director at Switch Mortgage Finance said, “Further rate reductions this week from HSBC show signs of continued confidence in the market despite last week’s inflation figures.

“The market in general has been sluggish but HSBC’s actions may inject renewed enthusiasm into buyers.

“HSBC have been off the boil recently and will hope they can grab a bigger piece of the pie with this move.”

Justin Moy, managing director at EHF Mortgages said, “Great news to start the week with. The only hope is that this is not a range of cuts thinner than the skin on a custard. With lenders definitely stepping up over the summer months, some healthy competition is starting to push rates down a little whilst we wait for positive news from the Bank of England. It’s time for the MPC to act just like HSBC.”

Ben Tadd, director at Lucra Mortgages said, “A great start to the week for mortgage borrowers, with yet more good news announced from HSBC in the form of their product rates dropping once more, from tomorrow.

“The rate war in the market starts afresh again this week, with other lenders now inticed to react by slashing their rates in response, to ensure they stay in the game and compete for their slice of the pie in the lending market.”