High street banks Nationwide, Halifax, Virgin Money, and TSB have each announced further rate cuts in what has been described as "a Bank Holiday bonanza for borrowers".
Following the 0.25% decrease in the Bank Rate on Thursday, 8 May, mortgage customers who are on Nationwide’s Standard Mortgage Rate (SMR) will see a decrease of 0.25%.
The new SMR of 6.99% will come into effect on 1 June 2025.
Halifax has reduced rates by up to 0.18%, and TSB and Virgin by up to 0.2%.
Martin Lewis: The UK base rate is expected to be cut on Thursday! But what could that mean for mortgages?
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Rates on tracker mortgages held by existing Nationwide customers automatically decrease when the Bank Rate is cut, so these will decrease to reflect the Bank Rate change from 1 June 2025.
Michelle Lawson, director at Lawson Financial said: "Let's hope this is the starter before the main course is served up tomorrow in the form of a Bank of England base rate cut. It's proving to be a Bank Holiday bonanza for borrowers this week."
Ken James, Director at Contractor Mortgage Services said: "For prospective homebuyers and those looking to remortgage, the current environment where lenders are cutting rates left, right and centre, along with the re-emergence of sub-4% deals, is extremely positive. Borrowers are being presented with ever more opportunities to secure more affordable mortgage deals.
"However, many of these competitive rates come with specific eligibility criteria, such as higher deposit requirements or fees. Given the dynamic nature of the market, it's advisable to act promptly and consult with mortgage advisers to navigate the available options effectively.
"The current flurry of cuts have started to re-ignite the market and business is certainly starting to pick up momentum. The potential for another base rate cut this week can only add more fuel to this ever-growing fire, and long may it burn."
Justin Moy, Managing Director at EHF Mortgages commented: "Lenders are certainly looking to become more attractive to borrowers, with better rates and more innovation hitting the market on a near-daily basis. Any idea of a lull after the stamp duty changes seems to be forgotten, as borrowers are looking to jump onto these improved deals to secure a new deal early or just to make a new home purchase that bit easier.
"This is likely to be a trend for the next few weeks, given positive news on the Base Rate is hopefully just around the corner."
Hannah Bashford, Director at Model Financial Solutions also commented: "This is fantastic news as we enter the summer months. There is so much happening in the mortgage market at the moment.
"It’s an exciting and fast-paced place to be. Advisers are proving more important than ever at present as it’s a full-time job just keeping up with all the changes, let alone getting your application changed with a lender."
While Aaron Strutt, Product and Communications Director at Trinity Financial said: "Mortgage lenders are still cutting their rates and if the base rate comes down tomorrow, I suspect there will be even more price reductions.
"If you have a mortgage offer in place, it would be a good idea to check with your lender or broker to see if they have cheaper mortgages on offer because there have been a lot of changes."
Babek Ismayil, Founder at OneDome commented: "We're going into base rate decision day with some serious momentum. Lenders are extremely hungry for business at present and we could see more cuts in the days and weeks ahead if Threadneedle Street reduces Bank Rate tomorrow and swaps continue to edge down. It's shaping up to be a busy May in the property market."
Ranald Mitchell, Director at Charwin Mortgages said: "We’re seeing a real mortgage rate battle heating up, with Halifax, Virgin Money, TSB and Nationwide all cutting rates within 48 hours.
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"This is a clear signal that lenders are fighting hard for business, and it's great news for borrowers who’ve been holding off in hopes of a better deal.
"With the Bank of England’s next rate decision just days away, lenders appear to be getting ahead of the curve, pricing in future cuts and trying to steal a march on the competition.
"It feels like the starting gun has been fired for the summer mortgage market."
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