August is the month for homebuyers, as many lenders have lowered interest rates despite an anticipated rise in Bank of England base rate, in an attempt to sustain high business levels in what is often a slower month.
Lenders who have already reduced rates are:
West Bromwich BS
Scottish widows Bank
Previously for loans up to 80%, West Bromwich BS two year fixed rate was 2.79%, and this has now been decreased to 2.74%. They have also helped homebuyers with less deposit looking longer term stability, decreasing their 5 year fixed rates from 4.29% to 4.09%.
Scottish Widows also reduced some headline rates by 0.2%, Santander by 0.25%, and Leeds BS by 0.29%.
These summer bargains have become somewhat of a seasonal trend in recent years, giving borrowers chance to secure fantastic fixed rates at a range of loan to value ratio’s, but it has also surprised one or two this year with the anticipation of a jump in base rate this Autumn.
With that in mind, the summer discounts are not quite as good as they have been in the past for longer term product rates, where 5 year fixed rates sat around 0.5% higher than this time last year, perhaps indicating that lenders are listening to the market and are reluctant to slash rates completely.