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Scottish Sun
12-07-2025
- Business
- Scottish Sun
Barclays, Nationwide, Skipton and TSB slash mortgage rates – saving households £1,000s
Plus, we've explained how to get the best deal Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) BARCLAYS, Nationwide, Skipton Building Society and TSB have all slashed mortgage rates this week, kicking off a price war among high street lenders. More and more deals are dipping below 4%, offering families huge savings on their monthly payments. Sign up for Scottish Sun newsletter Sign up 1 These reductions come as swap rates, which banks use to price mortgages, have fallen, giving lenders room to offer cheaper deals Nationwide kicked off the cuts, reducing rates by up to 0.20 percentage points. Customers can now get fixed deals starting at 3.84% if they're switching mortgages or borrowing more, and 4.19% if they're a first-time buyer. Homeowners remortgaging can secure a two-year fixed rate at 4.44% with a £999 fee, while switcher deals now start at 3.84%. Barclays quickly jumped into the rate-cut battle, offering deals as low as 3.84%, giving homeowners a chance to lower their monthly payments. The two-year fixed remortgaging rate at 75% loan-to-value (LTV) has been reduced from 4.14% to 3.99%, with a £999 fee. Meanwhile, the two-year fixed rate for homebuyers has dropped from 3.91% to 3.84% at 60% LTV, also with a £999 fee. LTV, or loan-to-value, is the percentage of a property's price you're borrowing. The rest is covered by your deposit. The average two-year fixed mortgage rate has dropped from its peak of 6.86% in July 2023 to 5.05% yesterday, according to For someone with a £250,000 mortgage, dropping from a rate of 5.05% to 3.84% means saving around £172 a month - or £4,128 over two years. TSB lowered its mortgage rates yesterday, making it more affordable for first-time buyers and movers borrowing up to 90% of their property's value. The Sun's James Flanders explains how to find the best deal on your mortgage Remortgage rates for two- and five-year fixed deals up to 75% LTV also dropped by up to 0.25%, offering homeowners better savings. Skipton Building Society also joined the competition, introducing deals below 4%, giving buyers and homeowners even more choices to save. These reductions come as swap rates, which banks use to price mortgages, have fallen, giving lenders room to offer cheaper deals. Justin Moy, Managing Director at EHF Mortgages, said: "The sub-4% mortgage race is back on as lenders battle for market share. "Now is an ideal time to be grabbing a new deal if yours is due to renew in 2025. "Competition is seriously heating up as lenders stick their elbows out and look to win business on rates. "But as we know, things can turn in the blink of an eye, so borrower beware." How to get the best deal on your mortgage IF you're looking for a traditional type of mortgage, getting the best rates depends entirely on what's available at any given time. There are several ways to land the best deal. Usually the larger the deposit you have the lower the rate you can get. If you're remortgaging and your loan-to-value ratio (LTV) has changed, you'll get access to better rates than before. Your LTV will go down if your outstanding mortgage is lower and/or your home's value is higher. A change to your credit score or a better salary could also help you access better rates. And if you're nearing the end of a fixed deal soon it's worth looking for new deals now. You can lock in current deals sometimes up to six months before your current deal ends. Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost. But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal - but compare the costs first. To find the best deal use a mortgage comparison tool to see what's available. You can also go to a mortgage broker who can compare a much larger range of deals for you. Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender. You'll also need to factor in fees for the mortgage, though some have no fees at all. You can add the fee - sometimes more than £1,000 - to the cost of the mortgage, but be aware that means you'll pay interest on it and so will cost more in the long term. You can use a mortgage calculator to see how much you could borrow. Remember you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks and looking at your credit file. You may also need to provide documents such as utility bills, proof of benefits, your last three month's payslips, passports and bank statements. What's next for mortgage rates? Mortgage rates are likely to keep falling as the Bank of England prepares to lower interest rates next month. Sanjay Raja, Deutsche Bank's chief economist, said a rate cut on August 7 is "almost certain", after UK GDP fell by 0.1% in May. The Bank of England usually cuts rates to stimulate economic growth and put more money into the economy. Lower interest rates usually mean cheaper mortgages. Tracker and standard variable mortgage holders often see lower payments within days of a base rate cut. However, fixed mortgage rates don't directly follow the Bank of England's base rate. Instead, they rely more on swap rates, which reflect expectations of future base rate changes. Money markets expect base rate cuts in August and possibly November, which could reduce it from the current 4.25% to 3.75%.
Daily Record
20-06-2025
- Business
- Daily Record
Finance expert warns savers ‘loyalty does not pay' after Bank of England holds base rate
Now is the time to check how much your savings are earning and switch to a better returns rate. Savers are being warned not to pay the price for leaving money sitting in pots with poor returns after the Bank of England base rate remained on hold at 4.25 per cent on Thursday. Average savings rates have been on a downward path in recent weeks, but there was a ray of light for savers as some providers unveiled new products on Thursday. Rachel Springall, a finance expert at said: 'Loyalty does not pay so it comes down to savers to proactively review rates and switch their account if they are getting a poor return on their hard-earned cash. 'It is vital that savers look beyond the high street banks and instead take notice of the many challenger banks and mutuals competing in the savings arena.' She added: 'The biggest high street banks pay an average of 1.56 per cent across easy access accounts, but even this pitiful return is being eaten away by inflation, which sits above its 2 per cent target. 'It may be convenient to leave pots with such prominent brands, but it's costing savings in better returns available elsewhere.' According to Moneyfacts, the average easy access savings rate on offer across the market fell from 2.79 per cent at the start of May to 2.72 per cent at the start of June, based on someone having a £10,000 deposit. The average easy access Isa rate fell from 3.03 per cent to 2.98 per cent over the period. Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners said: 'With interest rates still offering savers a decent return, it's never been more important to keep an eye on the personal savings allowance (PSA) – a threshold that's remained the same since 2016. 'Under the PSA, basic rate taxpayers can receive up to £1,000 of interest tax-free, while for higher rate taxpayers this is limited to just £500. Additional rate taxpayers get no PSA at all. 'Higher-rate taxpayers are particularly at risk of breaching the PSA, especially if they've secured one of the market's top-paying accounts. 'To sidestep an unexpected tax bill, savers should consider a more tax-efficient approach. Making full use of the £20,000 Isa allowance and boosting pension contributions can help shelter returns from the taxman, while also supporting long-term wealth goals.' On Thursday, Yorkshire Building Society announced it had refreshed its range of fixed-rate saving options, including a one-year fixed-rate bond at 4.00% AER (annual equivalent rate), a 4.05% two-year fixed-rate bond, a 3.80% three-year fixed-rate bond, and a 3.70% five-year fixed-rate bond. It is also offering a 3.75% one-year fixed-rate cash Isa and a 3.80% three-year fixed-rate cash Isa. Harry Walker, senior savings manager at Yorkshire Building Society, said: 'With interest rate movements making it harder for savers to plan ahead, we're proud to offer fixed-rate options that combine strong returns with peace of mind.' Another mutual, Skipton Building Society, has launched a 'bonus saver' easy access account, at 4.50%, which includes a 1.70% fixed bonus for the first 12 months. The launch follows the introduction of Skipton's new cash Isa base rate tracker last week. The tracker is linked to the Bank of England base rate, currently offering savers a rate of 4.10%. The rate of interest is guaranteed to track 0.15 percentage points below the Bank of England base rate for 12 months from the first payment into the account. The base rate hold on Thursday may disappoint some mortgage holders looking to switch to a new deal. According to figures from UK Finance, around 1.6 million fixed-rate homeowner mortgage deals will end or have already ended in 2025. The Bank of England has said interest rates 'remain on a gradual downward path,' despite being left on hold on Thursday. Nicholas Mendes, mortgage technical manager at John Charcol, said: 'Markets still expect a cut or two later this year, possibly as soon as August,' although: 'The rate path is still anything but settled. 'Borrowers would be wise not to wait passively. If your current fixed deal is due to end this year, it's worth reviewing your options early, as some lenders allow new deals to be secured up to six months in advance.' Jenny Ross, Which? Money editor, said: 'Anyone concerned about meeting their payments should speak to their lender as soon as possible – they're obliged to help.'
South Wales Guardian
19-06-2025
- Business
- South Wales Guardian
Savers warned ‘loyalty does not pay' as Bank of England base rate held at 4.25%
The Bank of England base rate remained on hold at 4.25% on Thursday. Average savings rates have been on a downward path in recent weeks, but there was a ray of light for savers as some providers unveiled new products on Thursday. Rachel Springall, a finance expert at said: 'Loyalty does not pay so it comes down to savers to proactively review rates and switch their account if they are getting a poor return on their hard-earned cash. 'It is vital that savers look beyond the high street banks and instead take notice of the many challenger banks and mutuals competing in the savings arena. 'The biggest high street banks pay an average of 1.56% across easy access accounts, but even this pitiful return is being eaten away by inflation, which sits above its 2% target. 'It may be convenient to leave pots with such prominent brands, but it's costing savings in better returns available elsewhere.' According to Moneyfacts, the average easy access savings rate on offer across the market fell from 2.79% at the start of May to 2.72% at the start of June, based on someone having a £10,000 deposit. The average easy access Isa rate fell from 3.03% to 2.98% over the period. Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners said: 'With interest rates still offering savers a decent return, it's never been more important to keep an eye on the personal savings allowance (PSA) – a threshold that's remained the same since 2016. 'Under the PSA, basic rate taxpayers can receive up to £1,000 of interest tax-free, while for higher rate taxpayers this is limited to just £500. Additional rate taxpayers get no PSA at all. 'Higher-rate taxpayers are particularly at risk of breaching the PSA, especially if they've secured one of the market's top-paying accounts. 'To sidestep an unexpected tax bill, savers should consider a more tax-efficient approach. Making full use of the £20,000 Isa allowance and boosting pension contributions can help shelter returns from the taxman, while also supporting long-term wealth goals.' On Thursday, Yorkshire Building Society announced it had refreshed its range of fixed-rate saving options, including a one-year fixed-rate bond at 4.00% AER (annual equivalent rate), a 4.05% two-year fixed-rate bond, a 3.80% three-year fixed-rate bond, and a 3.70% five-year fixed-rate bond. It is also offering a 3.75% one-year fixed-rate cash Isa and a 3.80% three-year fixed-rate cash Isa. Harry Walker, senior savings manager at Yorkshire Building Society, said: 'With interest rate movements making it harder for savers to plan ahead, we're proud to offer fixed-rate options that combine strong returns with peace of mind.' Another mutual, Skipton Building Society, has launched a 'bonus saver' easy access account, at 4.50%, which includes a 1.70% fixed bonus for the first 12 months. The launch follows the introduction of Skipton's new cash Isa base rate tracker last week. The tracker is linked to the Bank of England base rate, currently offering savers a rate of 4.10%. The rate of interest is guaranteed to track 0.15 percentage points below the Bank of England base rate for 12 months from the first payment into the account. The base rate hold on Thursday may disappoint some mortgage holders looking to switch to a new deal. According to figures from UK Finance, around 1.6 million fixed-rate homeowner mortgage deals will end or have already ended in 2025. The Bank of England has said interest rates 'remain on a gradual downward path,' despite being left on hold on Thursday. Nicholas Mendes, mortgage technical manager at John Charcol, said: 'Markets still expect a cut or two later this year, possibly as soon as August,' although: 'The rate path is still anything but settled. 'Borrowers would be wise not to wait passively. If your current fixed deal is due to end this year, it's worth reviewing your options early, as some lenders allow new deals to be secured up to six months in advance.' Mark Harris, chief executive of mortgage broker SPF Private Clients, said borrowers do have 'some good news … in that lenders have reduced mortgage rates and eased criteria in recent weeks. 'This rate hold was largely expected by the markets but if swap rates (which are used by lenders to price mortgages) fall, this will enable lenders to price their fixed-rate mortgages more keenly, easing borrowers' affordability concerns.' Matt Smith, Rightmove's mortgages expert said: 'Lenders have a bit of room to reduce rates further even with a hold in the (Bank of England base rate) today so home movers can still be hopeful of some small mortgage rate cuts over the next couple of weeks. 'Average rates have been pretty flat in recent weeks, but we have seen increasing signs of competition amongst lenders as they have reduced their stress-testing criteria and with new mortgage products coming back to market, lenders are looking at ways to support more people get the home that they want.' Jenny Ross, Which? Money editor, said: 'Anyone concerned about meeting their payments should speak to their lender as soon as possible – they're obliged to help.'
Glasgow Times
19-06-2025
- Business
- Glasgow Times
Savers warned ‘loyalty does not pay' as Bank of England base rate held at 4.25%
The Bank of England base rate remained on hold at 4.25% on Thursday. Average savings rates have been on a downward path in recent weeks, but there was a ray of light for savers as some providers unveiled new products on Thursday. Rachel Springall, a finance expert at said: 'Loyalty does not pay so it comes down to savers to proactively review rates and switch their account if they are getting a poor return on their hard-earned cash. 'It is vital that savers look beyond the high street banks and instead take notice of the many challenger banks and mutuals competing in the savings arena. 'The biggest high street banks pay an average of 1.56% across easy access accounts, but even this pitiful return is being eaten away by inflation, which sits above its 2% target. 'It may be convenient to leave pots with such prominent brands, but it's costing savings in better returns available elsewhere.' According to Moneyfacts, the average easy access savings rate on offer across the market fell from 2.79% at the start of May to 2.72% at the start of June, based on someone having a £10,000 deposit. The average easy access Isa rate fell from 3.03% to 2.98% over the period. Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners said: 'With interest rates still offering savers a decent return, it's never been more important to keep an eye on the personal savings allowance (PSA) – a threshold that's remained the same since 2016. 'Under the PSA, basic rate taxpayers can receive up to £1,000 of interest tax-free, while for higher rate taxpayers this is limited to just £500. Additional rate taxpayers get no PSA at all. 'Higher-rate taxpayers are particularly at risk of breaching the PSA, especially if they've secured one of the market's top-paying accounts. 'To sidestep an unexpected tax bill, savers should consider a more tax-efficient approach. Making full use of the £20,000 Isa allowance and boosting pension contributions can help shelter returns from the taxman, while also supporting long-term wealth goals.' On Thursday, Yorkshire Building Society announced it had refreshed its range of fixed-rate saving options, including a one-year fixed-rate bond at 4.00% AER (annual equivalent rate), a 4.05% two-year fixed-rate bond, a 3.80% three-year fixed-rate bond, and a 3.70% five-year fixed-rate bond. It is also offering a 3.75% one-year fixed-rate cash Isa and a 3.80% three-year fixed-rate cash Isa. Harry Walker, senior savings manager at Yorkshire Building Society, said: 'With interest rate movements making it harder for savers to plan ahead, we're proud to offer fixed-rate options that combine strong returns with peace of mind.' Another mutual, Skipton Building Society, has launched a 'bonus saver' easy access account, at 4.50%, which includes a 1.70% fixed bonus for the first 12 months. The launch follows the introduction of Skipton's new cash Isa base rate tracker last week. The tracker is linked to the Bank of England base rate, currently offering savers a rate of 4.10%. The rate of interest is guaranteed to track 0.15 percentage points below the Bank of England base rate for 12 months from the first payment into the account. The base rate hold on Thursday may disappoint some mortgage holders looking to switch to a new deal. According to figures from UK Finance, around 1.6 million fixed-rate homeowner mortgage deals will end or have already ended in 2025. The Bank of England has said interest rates 'remain on a gradual downward path,' despite being left on hold on Thursday. Nicholas Mendes, mortgage technical manager at John Charcol, said: 'Markets still expect a cut or two later this year, possibly as soon as August,' although: 'The rate path is still anything but settled. 'Borrowers would be wise not to wait passively. If your current fixed deal is due to end this year, it's worth reviewing your options early, as some lenders allow new deals to be secured up to six months in advance.' Mark Harris, chief executive of mortgage broker SPF Private Clients, said borrowers do have 'some good news … in that lenders have reduced mortgage rates and eased criteria in recent weeks. 'This rate hold was largely expected by the markets but if swap rates (which are used by lenders to price mortgages) fall, this will enable lenders to price their fixed-rate mortgages more keenly, easing borrowers' affordability concerns.' Matt Smith, Rightmove's mortgages expert said: 'Lenders have a bit of room to reduce rates further even with a hold in the (Bank of England base rate) today so home movers can still be hopeful of some small mortgage rate cuts over the next couple of weeks. 'Average rates have been pretty flat in recent weeks, but we have seen increasing signs of competition amongst lenders as they have reduced their stress-testing criteria and with new mortgage products coming back to market, lenders are looking at ways to support more people get the home that they want.' Jenny Ross, Which? Money editor, said: 'Anyone concerned about meeting their payments should speak to their lender as soon as possible – they're obliged to help.'
Rhyl Journal
19-06-2025
- Business
- Rhyl Journal
Savers warned ‘loyalty does not pay' as Bank of England base rate held at 4.25%
The Bank of England base rate remained on hold at 4.25% on Thursday. Average savings rates have been on a downward path in recent weeks, but there was a ray of light for savers as some providers unveiled new products on Thursday. Rachel Springall, a finance expert at said: 'Loyalty does not pay so it comes down to savers to proactively review rates and switch their account if they are getting a poor return on their hard-earned cash. 'It is vital that savers look beyond the high street banks and instead take notice of the many challenger banks and mutuals competing in the savings arena. 'The biggest high street banks pay an average of 1.56% across easy access accounts, but even this pitiful return is being eaten away by inflation, which sits above its 2% target. 'It may be convenient to leave pots with such prominent brands, but it's costing savings in better returns available elsewhere.' According to Moneyfacts, the average easy access savings rate on offer across the market fell from 2.79% at the start of May to 2.72% at the start of June, based on someone having a £10,000 deposit. The average easy access Isa rate fell from 3.03% to 2.98% over the period. Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners said: 'With interest rates still offering savers a decent return, it's never been more important to keep an eye on the personal savings allowance (PSA) – a threshold that's remained the same since 2016. 'Under the PSA, basic rate taxpayers can receive up to £1,000 of interest tax-free, while for higher rate taxpayers this is limited to just £500. Additional rate taxpayers get no PSA at all. 'Higher-rate taxpayers are particularly at risk of breaching the PSA, especially if they've secured one of the market's top-paying accounts. 'To sidestep an unexpected tax bill, savers should consider a more tax-efficient approach. Making full use of the £20,000 Isa allowance and boosting pension contributions can help shelter returns from the taxman, while also supporting long-term wealth goals.' On Thursday, Yorkshire Building Society announced it had refreshed its range of fixed-rate saving options, including a one-year fixed-rate bond at 4.00% AER (annual equivalent rate), a 4.05% two-year fixed-rate bond, a 3.80% three-year fixed-rate bond, and a 3.70% five-year fixed-rate bond. It is also offering a 3.75% one-year fixed-rate cash Isa and a 3.80% three-year fixed-rate cash Isa. Harry Walker, senior savings manager at Yorkshire Building Society, said: 'With interest rate movements making it harder for savers to plan ahead, we're proud to offer fixed-rate options that combine strong returns with peace of mind.' Another mutual, Skipton Building Society, has launched a 'bonus saver' easy access account, at 4.50%, which includes a 1.70% fixed bonus for the first 12 months. The launch follows the introduction of Skipton's new cash Isa base rate tracker last week. The tracker is linked to the Bank of England base rate, currently offering savers a rate of 4.10%. The rate of interest is guaranteed to track 0.15 percentage points below the Bank of England base rate for 12 months from the first payment into the account. The base rate hold on Thursday may disappoint some mortgage holders looking to switch to a new deal. According to figures from UK Finance, around 1.6 million fixed-rate homeowner mortgage deals will end or have already ended in 2025. The Bank of England has said interest rates 'remain on a gradual downward path,' despite being left on hold on Thursday. Nicholas Mendes, mortgage technical manager at John Charcol, said: 'Markets still expect a cut or two later this year, possibly as soon as August,' although: 'The rate path is still anything but settled. 'Borrowers would be wise not to wait passively. If your current fixed deal is due to end this year, it's worth reviewing your options early, as some lenders allow new deals to be secured up to six months in advance.' Mark Harris, chief executive of mortgage broker SPF Private Clients, said borrowers do have 'some good news … in that lenders have reduced mortgage rates and eased criteria in recent weeks. 'This rate hold was largely expected by the markets but if swap rates (which are used by lenders to price mortgages) fall, this will enable lenders to price their fixed-rate mortgages more keenly, easing borrowers' affordability concerns.' Matt Smith, Rightmove's mortgages expert said: 'Lenders have a bit of room to reduce rates further even with a hold in the (Bank of England base rate) today so home movers can still be hopeful of some small mortgage rate cuts over the next couple of weeks. 'Average rates have been pretty flat in recent weeks, but we have seen increasing signs of competition amongst lenders as they have reduced their stress-testing criteria and with new mortgage products coming back to market, lenders are looking at ways to support more people get the home that they want.' Jenny Ross, Which? Money editor, said: 'Anyone concerned about meeting their payments should speak to their lender as soon as possible – they're obliged to help.'
