Nationwide, Barclays and Halifax cut mortgage rates ahead of expected Bank of England rise
Major UK lenders Nationwide, Barclays and Halifax have reduced some mortgage rates even as the Bank of England is expected to raise interest rates this week.
Several of Britain's largest mortgage lenders, including Nationwide, Barclays and Halifax, have cut some of their mortgage rates, even though the Bank of England is widely expected to raise interest rates this week.
The move runs against the usual direction of borrowing costs when the central bank tightens monetary policy. Lenders typically pass on higher base rates to customers, so the decision to trim certain fixed-rate deals has drawn attention from borrowers and industry watchers alike.
The Bank of England sets the base rate, which influences the cost of borrowing across the economy. Mortgage pricing, however, also depends on the lenders' own funding costs and the wholesale money markets, which can move ahead of official decisions. Expectations of a rate rise can therefore feed into lenders' pricing before the central bank acts.
For households, the reductions may offer some relief to those looking to remortgage or buy a home, although the wider direction of borrowing costs remains dependent on the central bank's next steps. Borrowers are advised to compare deals carefully, as the cuts apply to specific products and loan sizes rather than to every mortgage on offer.
Source: dailymail.com
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