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The Sun
12-07-2025
- Business
- The Sun
Barclays, Nationwide, Skipton and TSB slash mortgage rates – saving households £1,000s
BARCLAYS, Nationwide, Skipton Building Society and TSB have all slashed mortgage rates this week, kicking off a price war among high street lenders. More and more deals are dipping below 4%, offering families huge savings on their monthly payments. 1 Nationwide kicked off the cuts, reducing rates by up to 0.20 percentage points. Customers can now get fixed deals starting at 3.84% if they're switching mortgages or borrowing more, and 4.19% if they're a first-time buyer. Homeowners remortgaging can secure a two-year fixed rate at 4.44% with a £999 fee, while switcher deals now start at 3.84%. Barclays quickly jumped into the rate-cut battle, offering deals as low as 3.84%, giving homeowners a chance to lower their monthly payments. The two-year fixed remortgaging rate at 75% loan-to-value (LTV) has been reduced from 4.14% to 3.99%, with a £999 fee. Meanwhile, the two-year fixed rate for homebuyers has dropped from 3.91% to 3.84% at 60% LTV, also with a £999 fee. LTV, or loan-to-value, is the percentage of a property's price you're borrowing. The rest is covered by your deposit. The average two-year fixed mortgage rate has dropped from its peak of 6.86% in July 2023 to 5.05% yesterday, according to For someone with a £250,000 mortgage, dropping from a rate of 5.05% to 3.84% means saving around £172 a month - or £4,128 over two years. TSB lowered its mortgage rates yesterday, making it more affordable for first-time buyers and movers borrowing up to 90% of their property's value. Remortgage rates for two- and five-year fixed deals up to 75% LTV also dropped by up to 0.25%, offering homeowners better savings. Skipton Building Society also joined the competition, introducing deals below 4%, giving buyers and homeowners even more choices to save. These reductions come as swap rates, which banks use to price mortgages, have fallen, giving lenders room to offer cheaper deals. Justin Moy, Managing Director at EHF Mortgages, said: "The sub-4% mortgage race is back on as lenders battle for market share. "Now is an ideal time to be grabbing a new deal if yours is due to renew in 2025. "Competition is seriously heating up as lenders stick their elbows out and look to win business on rates. "But as we know, things can turn in the blink of an eye, so borrower beware." How to get the best deal on your mortgage IF you're looking for a traditional type of mortgage, getting the best rates depends entirely on what's available at any given time. There are several ways to land the best deal. Usually the larger the deposit you have the lower the rate you can get. If you're remortgaging and your loan-to-value ratio (LTV) has changed, you'll get access to better rates than before. Your LTV will go down if your outstanding mortgage is lower and/or your home's value is higher. A change to your credit score or a better salary could also help you access better rates. And if you're nearing the end of a fixed deal soon it's worth looking for new deals now. You can lock in current deals sometimes up to six months before your current deal ends. Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost. But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal - but compare the costs first. To find the best deal use a mortgage comparison tool to see what's available. You can also go to a mortgage broker who can compare a much larger range of deals for you. Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender. You'll also need to factor in fees for the mortgage, though some have no fees at all. You can add the fee - sometimes more than £1,000 - to the cost of the mortgage, but be aware that means you'll pay interest on it and so will cost more in the long term. You can use a mortgage calculator to see how much you could borrow. Remember you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks and looking at your credit file. You may also need to provide documents such as utility bills, proof of benefits, your last three month's payslips, passports and bank statements. What's next for mortgage rates? Mortgage rates are likely to keep falling as the Bank of England prepares to lower interest rates next month. Sanjay Raja, Deutsche Bank's chief economist, said a rate cut on August 7 is "almost certain", after UK GDP fell by 0.1% in May. The Bank of England usually cuts rates to stimulate economic growth and put more money into the economy. Lower interest rates usually mean cheaper mortgages. Tracker and standard variable mortgage holders often see lower payments within days of a base rate cut. However, fixed mortgage rates don't directly follow the Bank of England 's base rate. Instead, they rely more on swap rates, which reflect expectations of future base rate changes. Money markets expect base rate cuts in August and possibly November, which could reduce it from the current 4.25% to 3.75%. Different types of mortgages We break down all you need to know about mortgages and what categories they fall into. A fixed rate mortgage provides an interest rate that remains the same for an agreed period such as two, five or even 10 years. Your monthly repayments would remain the same for the whole deal period. There are a few different types of variable mortgages and, as the name suggests, the rates can change. A tracker mortgage sets your rate a certain percentage above or below an external benchmark. This is usually the Bank of England base rate or a bank may have its figure. If the base rate rises, so will your mortgage but if it drops then your monthly repayments will be reduced. A standard variable rate (SVR) is a default rate offered by banks. You usually revert to this at the end of a fixed deal term, unless you get a new one. SVRs are generally higher than other types of mortgage, so if you're on one then you're likely to be paying more than you need to. Variable rate mortgages often don't have exit fees while a fixed rate could do.
Scottish Sun
25-04-2025
- Business
- Scottish Sun
Barclays to make big change to bank accounts in DAYS impacting thousands of customers
Keep scrolling on tips to find the best saving rates DON'T BANK ON IT Barclays to make big change to bank accounts in DAYS impacting thousands of customers BARCLAYS is to make a big change to bank accounts in days impacting thousands of customers. The high street bank is lowering the rate on its Rainy Day Saver account for the second time in four months. Advertisement 1 The bank will make a change to its savings accounts Credit: Getty Customers are currently getting 4.87% interest on their Rainy Day Saver account. The interest was previously set at 5.12%, but this was cut by the bank in February. And now, on May 5, the interest is set to lower again to 4.61%. It comes ahead of the Bank of England's next interest decision on May 8. Advertisement Most economists are predicting that the rate will be cut next month down from its current figure of 4.5%, due to falling inflation. The base rate is used by lenders to determine the interest rates offered to customers on savings and borrowing costs. A base rate cut can mean that mortgage rates are lowered, which is good news for homeowners. But savers can be left with the short end of the stick as the interest rate they earn on their savings can also drop. Advertisement At 4.61% the Barclays Rainy Day saver is still a pretty good option for savers. It offers more than Close Brothers bank, which gives 4.45% on it easy access savings account. Santander's £130 Million Recovery: What You Need to Know But the figure is trumped by Chip bank who offer 4.75% on its easy access account. It is also worth noting that in order to sign up for a Barclays Rainy Day account you must already be a premium account holder or sign up for Blue Rewards, which costs £5 a month. Advertisement Barclays blue rewards comes with a number of perks including free. Apple TV. OTHER BANK CHANGES Virgin Money will lower the interest rate on its M Plus Saver account by 0.25 percentage points on June 16. Currently, customers benefit from an interest rate of 2.5% on savings up to £25,000. For instance, if you have £5,000 in savings, you would earn £125 in interest over the course of a year. Advertisement However, once the rate drops to 2.25%, the same £5,000 savings will generate £112.50 in interest annually - £12.50 less than before. For customers with savings exceeding £25,000, the current rate stands at 2%. Chase also slashed the rate on its standard Saver account from 3.25% to 3%.
The Sun
25-04-2025
- Business
- The Sun
Barclays to make big change to bank accounts in DAYS impacting thousands of customers
BARCLAYS is to make a big change to bank accounts in days impacting thousands of customers. The high street bank is lowering the rate on its Rainy Day Saver account for the second time in four months. 1 Customers are currently getting 4.87% interest on their Rainy Day Saver account. The interest was previously set at 5.12%, but this was cut by the bank in February. And now, on May 5, the interest is set to lower again to 4.61%. It comes ahead of the Bank of England 's next interest decision on May 8. Most economists are predicting that the rate will be cut next month down from its current figure of 4.5%, due to falling inflation. The base rate is used by lenders to determine the interest rates offered to customers on savings and borrowing costs. A base rate cut can mean that mortgage rates are lowered, which is good news for homeowners. But savers can be left with the short end of the stick as the interest rate they earn on their savings can also drop. At 4.61% the Barclays Rainy Day saver is still a pretty good option for savers. It offers more than Close Brothers bank, which gives 4.45% on it easy access savings account. Santander's £130 Million Recovery: What You Need to Know But the figure is trumped by Chip bank who offer 4.75% on its easy access account. It is also worth noting that in order to sign up for a Barclays Rainy Day account you must already be a premium account holder or sign up for Blue Rewards, which costs £5 a month. Barclays blue rewards comes with a number of perks including free. Apple TV. OTHER BANK CHANGES Virgin Money will lower the interest rate on its M Plus Saver account by 0.25 percentage points on June 16. Currently, customers benefit from an interest rate of 2.5% on savings up to £25,000. For instance, if you have £5,000 in savings, you would earn £125 in interest over the course of a year. However, once the rate drops to 2.25%, the same £5,000 savings will generate £112.50 in interest annually - £12.50 less than before. For customers with savings exceeding £25,000, the current rate stands at 2%. Chase also slashed the rate on its standard Saver account from 3.25% to 3%. FINDING THE BEST SAVINGS RATES WITH your current savings rates in mind, don't waste time looking at individual banking sites to compare rates - it'll take you an eternity. Research price comparison websites such as and MoneySupermarket. These will help you save you time and show you the best rates available. They also let you tailor your searches to an account type that suits you. As a benchmark, you'll want to consider any account that currently pays more interest than the current level of inflation - 2%. It's always wise to have some money stashed inside an easy-access savings account to ensure you have quick access to cash to deal with any emergencies like a boiler repair, for example. If you're saving for a long-term goal, then consider locking some of your savings inside a fixed bond, as these usually come with the highest savings rates.
Yahoo
15-03-2025
- Business
- Yahoo
German stocks, euro rally as German parties agree on historic debt deal
LONDON (Reuters) - German Chancellor-in-waiting Friedrich Merz reached an agreement with the Greens on Friday on a massive increase in state borrowing just days ahead of a parliamentary vote next week, Reuters reported, citing a source close to the negotiations. German shares rose on the news, with the blue chip Dax index over 2% higher on the day, while mid and small-cap stocks rose over 3%. The euro also strengthened and was last up 0.5% at $1.0904,, while Germany's 10-year bond yield, rose 7 basis points to 2.93%. COMMENTS: ROHAN KHANNA, HEAD OF EURO RATES STRATEGY, BARCLAYS, LONDON: Bond markets have generally been of the view that the package will be approved and hence 10-year Bund yields have not retracted at all after the sharp increase last week. Recent news reports which suggest that they are close to a deal have resulted in a further sell-off in EGBs (European government bonds) and this pressure should persist for now. With this sell-off, the yield curve has also continued to steepen as the markets price improved growth and inflation in the medium-term requiring the European Central Bank to hike policy rates. As things stand, markets expect the ECB to cut rates to 2% before the end of this year and then increase them to 2.5% by end of 2027. NICHOLAS REES, HEAD OF MACRO RESEARCH, MONEX EUROPE, LONDON: "They've managed to get over the first hurdle. There are a lot of challenges still to come. In Germany it takes a long time to spend money. So, despite the fact markets are very optimistic right now, we think they're going to be disappointed." "If it takes them a while to deploy cash, it's going to take a while to feed through for growth. What you do get is a big uptick in borrowing costs, which is going to weigh on growth." "We certainly expected euro-dollar to retrace lows, we're looking for euro-dollar to hit $1.03, as the market starts to price out some of these easing expectations in the U.S., as it becomes apparent these recession fears are overblown… and we've still got tariffs coming (on Europe)." CHRIS TURNER, GLOBAL HEAD OF MARKETS, ING, LONDON: "I think most of the market thought it (the fiscal reform) would go through. If we see confirmation today, rather than Tuesday, that it's gone through, then we're preempting some of the gains from next week." "Our rates strategy team think Bund yields are going to 3.2% and for the euro-dollar maybe $1.0950 might be the top. Big picture we see a range of $1.05-$1.10 and we think tariffs in April are going to be negative for the euro." "But, in the short-term all the focus is on this fiscal deal going through." ANDREAS BRUCKNER, EUROPEAN EQUITY STRATEGIST, BANK OF AMERICA, LONDON: "The market of course loves this news because they need the Greens to push through this fiscal package." "Everything related to German fiscal (policy) is basically up - also cap goods, defence stocks are driving this as well, an overall pro-cyclical rotation, I think a 1.2% outperformance of cyclical versus defensives, of course on the back of major underperformance yesterday." "So, there's also a bit of reversal of yesterday's broadly risk-off moves on the sector front." STEFAN BRUCKBAUER, CHIEF AUSTRIAN ECONOMIST, UNICREDIT, VIENNA: "Overall it's great news in general for the Austrian economy as Germany is our main trading partner and more than 7% of our GDP comes from Germany, this is more double amount than the U.S." "Looking at all these changes, especially in the U.S., it's good news for us that our main export market is starting to invest. Although there are some negative effects also, we have seen increasing interest rates on the long end." RICHARD MCGUIRE, HEAD OF RATES STRATEGY, RABOBANK: "The deal had been anticipated as indicated by the violent selloff in bonds last week." "The additional upward impetus in yields is limited." "What would be interesting to see is if the 3% ceiling for Bund yield breaks before these plans come into fruition." "This is positive for Germany but there are questions marks on how quickly the plans can be delivered. The speed at which the funds can be deployed is questionable." LEE HARDMAN, SENIOR CURRENCY ANALYST, MUFG, LONDON: "Short term it's another positive driver for the euro, but we'd be wary about getting too excited about the news, the market was already expecting it to come before next Tuesday." "It takes the risk of a disappointment off the table, and allows the euro to drift a bit higher." Sign in to access your portfolio
