Latest news with #mortgages
Daily Mail
4 hours ago
- Business
- Daily Mail
Nationwide cuts mortgage rates, while other lenders are putting them up
Nationwide will be reducing the interest rates on some of its two, three and five-year fixed rate mortgages from tomorrow. Rates will be cut by up to 0.12 percentage points, meaning the new lowest rate available with Nationwide will fall to 3.9 per cent. Reductions will be made for both buyers and those remortgaging to the building society. Those buying a property with at least a 40 per cent deposit will now be able to secure a two-year fixed rate at 3.9 per cent with a £1,499 fee. On a £200,000 mortgage being repaid over 25 years that would equate to £1,052 a month, with the fee added to the loan. For those buying with a smaller deposit the rates are only marginally higher. The cheapest two-year fixed rate for someone buying with a 25 per cent deposit is 4.04 per cent with a £999 fee, while the cheapest five-year fixed rate for someone buying with a 15 per cent deposit is 4.29 per cent with a £999 fee. The lowest remortgage rates start from 3.92 per cent for those prepared to fix for two years. Why are some lenders increasing mortgage rates? Nationwide's cuts go slightly against the grain at the moment. Three major lenders have increased their fixed rates in the past 24 hours, because financial markets are predicting fewer Bank of England interest rate cuts over the rest of 2025. Halifax, Accord and Santander have all pushed up rates, with the latter increasing rates by up to 0.13 percentage points on a number of its products. Fixed-rate mortgage pricing is largely based on Sonia swap rates - the inter-bank lending rate, based on future interest rate expectations. When Sonia swaps rise sufficiently it often results in fixed mortgage rates going up, and vice versa when they fall. Over the past month, five-year and two-year Sonia swaps have risen just over 0.2 percentage points which represents a sizeable shift in the wrong direction for mortgage borrowers. Andrew Montlake, chief executive at broker Coreco told the news agency, Newspage: 'Lenders are slowly but surely reversing their recent rate cuts in response to rising swap rates. 'Prospective borrowers may be left bemused by a rising market once more, as many were waiting on the expectation of even lower rates. 'In a capricious market such as this, it pays to act quickly and lock into a rate first to ensure you get the home of your dreams rather than trying to play the market and risk everything.' Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
Telegraph
8 hours ago
- Business
- Telegraph
Three lenders raise mortgage rates as Bank of England casts doubts over cuts
Three lenders have increased mortgages costs after the Bank of England raised doubts over the speed of interest rate cuts. Halifax, Santander and Accord have all raised rates as swap rates – which are used to price fixed rate deals – increased and hopes of further Bank of England base rate cuts receded. The increases came as Andrew Bailey, governor of the Bank of England, warned that the pace of future Bank Rate cuts was 'shrouded in uncertainty' as a result of the unknown impact of Trump's tariffs on the economic outlook. Speaking to MPs during a Treasury Committee session on Tuesday, Mr Bailey said that the central bank had 'genuine concerns' about the ongoing global trade tensions. The governor, who was being quizzed alongside fellow members of the Bank's Monetary Policy Committee (MPC), said it was not clear cut where UK interest rates will go next. 'I think the path remains downwards, but how far and how quickly is now shrouded in a lot more uncertainty, frankly,' he told MPs. In a late night social media post, President Donald Trump expressed anger at China's President Xi, labelling him 'extremely hard to make a deal with' as the two leaders continue to battle over trade. President Trump sent stock markets into turmoil with his tariff campaign, first launched in February, and then ramped up with his 'Liberation Day' onslaught on April 2. Last month, the Bank voted to slash its headline rate by 0.25 percentage points to 4.25pc, but traders have only priced in one further cut in 2025, with a 54pc chance of second. Confidence has waned since earlier in the year when some economists had predicted as many as four reductions. Lenders reduced their rates following May's cut, with mortgage brokers predicting prices could fall as low as 3.5pc, however, the ongoing economic uncertainty has dampened expectations. Nicholas Mendes of John Charol said: 'With recent inflation data coming in higher than forecast and economic growth holding firm, predictions of multiple base rate cuts this year have been scaled back. As a result, swap rates have been steadily climbing, and lenders are responding by repricing deals upwards. 'For borrowers, particularly those coming off fixed deals later this year, this means the window for securing a cheaper rate may be narrowing sooner than expected.' Two-year swaps reached 3.8pc on Wednesday, up from 3.6pc just weeks ago. Five-year swap rates were at around 3.9pc, up from 3.6pc. However, Aaron Strutt of brokerage Trinity Financial added that even with the changes in expectation and recent price increases, mortgages should remain fairly priced over the near term, with some deals below 4pc still on the market. The average two-year fixed rate was 5.13pc on Wednesday according to analyst MoneyFacts. The average 5-year rate stood at 5.10pc.
Yahoo
11 hours ago
- Business
- Yahoo
Cumberland reports modest profit as it celebrates 175th anniversary and makes significant investment to enhance customer experience
CARLISLE, England, June 4, 2025 /PRNewswire/ -- The Cumberland Building Society has reported healthy financial results as it celebrates its 175th anniversary and continues to grow its savings and mortgages balance sheet, ending the year at a record high of £3.33bn. Mortgage lending rose by 6.6 per cent to £2.76bn while savings balances climbed by 7.1 per cent to £3.01bn. The Society, which made excellent progress as it continues delivering its transformation programme and investing in a sustainable future, continued to deliver on its promise to offer a banking experience that is "kinder to people and the planet". As expected, profit levels reflect the significant investment made on New Cumberland, a project seeing the Society invest in a resilient, future-proof banking platform which will ensure it continues to meet evolving customer needs alongside the personal touch that sets The Cumberland apart. Writing in the annual report, new chair, Jackie Arnold, said: "We previously stated that the investment in New Cumberland would be reflected in profitability for the next two or three years and that has been the case this year. However, thanks to the strong performance of the business, we're delighted to say we were in fact profitable. "Your Board is convinced that working on New Cumberland is the right decision and the best way to secure the Society's long-term future." Its statutory pre-tax profit of £1m compares with £9.6m in 2023-24. Operating profit reduced from £27.4m to £20m as high inflation and falling interest rates squeezed margins. The Cumberland is Cumbria's largest financial institution with 31 branches across Cumbria, Northumberland, Lancashire and southwest Scotland. Other highlights of the financial year included the reopening of the extensively renovated flagship English Street branch in Carlisle and the refurbishment of branches in Preston and Egremont. The Society retained its Feefo Platinum Trusted Service Award for the fifth consecutive year and was rated by Best Companies as one of the best largest employers in the UK with the highest possible three-star "world class" accreditation. As part of its continued community giving, The Cumberland donated £250,000 for its Kinder Kind of Kitchen initiative to help tackle food poverty. The Society also continued to provide free teaching resources for schools with its financial education partner EVERFI, and made another donation to Cumbria Wildlife Trust to support conservation work with endangered red squirrels. The Cumberland has also been reducing its carbon footprint as it aims to become carbon neutral in operations by 2030. Chief executive, Des Moore, who is stepping down in the summer of 2026 and supporting an orderly transition to new leadership, said that The Cumberland's enduring success was built on its community ethos and the mutual model where it is owned by members, its savers and borrowers. He added: "We have no external shareholders demanding a quick return on capital. This enables us to take long-term decisions in the best interests of members. I am genuinely excited by the potential of the Society to do good and achieve more. We have a promising future as well as an illustrious past." Unusually for a building society, The Cumberland offers current accounts to its customers, provides commercial lending to businesses and has a car finance subsidiary. Business lending increased but slowed year on year as the Hospitality sector struggled with higher costs. The Society is currently expanding its business lending into other carefully chosen sectors. The Cumberland's annual general meeting takes place on 22nd July at Cumberland House. The Society donates £2 to good causes for every vote cast at the AGM, whether in person or online. Photo - View original content to download multimedia: Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Bloomberg
20 hours ago
- Business
- Bloomberg
Westpac Says Reaches Pact With Regulator Over Mortgage Breaches
Westpac Banking Corp. said its RAMS Financial Group Pty. unit reached an agreement with Australia's markets regulator to resolve its investigation into mortgages. The subsidiary of the Australian bank has completed a remediation program and will continue to work with the Australian Securities and Investments Commission to resolve the proceedings as quickly as possible, according to a Westpac statement Wednesday.
BBC News
2 days ago
- Business
- BBC News
Mortgages: First-time buyers typically borrowing for 31 years
First-time buyers are borrowing through mortgages that last an average of 31 years as the affordability of homes remains a stretch.A decade ago, the average mortgage term for those buying a first home was 28 years, according to figures from banking trade body UK Finance. Higher mortgage rates have pushed people to borrow for longer to keep their monthly repayments as low as mortgage rates having fallen recently, these terms are showing no sign of dropping again. Recent data showed that about two in five new mortgages had terms that see homeowners still making repayments into retirement. Ultra-long mortgages Lenders tend to allow mortgage terms up to a maximum of 40 years. These have been popular among first-time buyers, many of whom are in their 30s, who are stretching their finances to allow them to buy a meant the average term for a mortgage lengthened in 2022-23, and has not really dropped many young homeowners are choosing these long mortgage terms to make repayments more manageable, they may opt for shorter terms in the future if their salaries improve or they move Finance said the amount they initially spent on mortgage payments relative to their income was still high. "Even as interest rates have come down, this measure of affordability has not eased significantly, with rising house prices largely offsetting any lowering of payments through falling rates," its review of household finances said. First-time buyers were among a host of people who rushed to complete property purchases before a change in stamp duty on 1 changes to thresholds, made in 2022, reverted back in April. It means buyers of properties in England and Northern Ireland now pay stamp duty on homes bought for more than £125,000. First-time buyers pay on homes bought for more than £300, UK Finance data shows that property completion numbers were much higher in the first three months of the year compared with the same period a year peaked in March, immediately before the deadline, when first-time buyer completions were 113% higher than the same month a year earlier. Existing homeowner completions soared by 140% over the same data shows there has been, and will be, a significant drop-off after the approvals for house purchases, which is an indicator of future borrowing, decreased for the fourth consecutive month in April, according to the latest figures from the Bank of reflects some of the affordability challenges faced by new buyers. However, various commentators have suggested there is still some momentum in the UK housing market, mainly due to low levels of unemployment."Despite wider economic uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive," said Robert Gardner, chief economist at building society said house prices rose by 0.5% in May, following a slight drop in April. It said property values were up by 3.5% over the last year, meaning the average home cost £273,427.
