0:00
Lending giants, Barclays, Nationwide,
0:02
HSBC and more are all making major moves
0:05
slashing rates across a bunch of their
0:07
mortgage products. The rate changes do
0:09
come though as lenders are rushing to
0:11
catch up with swap rates, which have
0:12
been the key driver of volatility. Swap
0:15
rates serve as a primary benchmark for
0:17
pricing fixed rate mortgages and reflect
0:20
the market's expectations for future
0:22
interest rates. Businesses are also
0:23
going to be looking to hold on to their
0:25
competitive edge. So, when you see one
0:27
industry giant fire a starting gun on a
0:29
new competitive rate, don't be surprised
0:31
to see more follow. For home owners
0:33
currently sitting on expensive standard
0:35
variable rates, this move represents a
0:37
window of opportunity to lock in and
0:39
make a deal before the next wave of
0:41
market volatility hits the square mile.
0:44
But, we might not be out of the dark
0:45
just yet. Official figures this week
0:48
revealed inflation had surged 3.3% in
0:51
March. That's up from 3% in February and
0:54
the mortgage market still remains
0:56
elevated. The average two-year fixed
0:58
rate homeowner mortgage was 4.83%
1:02
at the start of March and by the end of
1:04
this week it was still over 5.8% and
1:07
over on the five-year fixed, the rate
1:11
from 4.95% at the start of March. So,
1:14
whilst lenders now might be deciding
1:15
it's time to whistle down the rates that
1:17
they kicked up in the last month, the
1:19
outlook ahead still remains clouded.
