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NatWest became the latest lender to offer sub-4 per cent mortgages this week, as UK banks compete to attract homebuyers in the wake of the Bank of England’s first interest rate cut in four years.
The high street lender lowered the rate on a five-year fixed mortgage to 3.89 per cent on Tuesday, with a maximum loan-to-value ratio of 60 per cent. The new mortgage comes with a sizeable arrangement fee of £1,495.
Despite the inflation rate for July rising to 2.2 per cent, lenders including Barclays, Santander, HSBC and Halifax have all reduced rates in recent days, as property agents claim optimism is returning to the UK housing market.
But are they correct? Are you planning to buy a home now that rates have started to fall? Or are you putting off a move until rates fall further? Are you concerned that property prices might increase as borrowing costs come down? Or do you think house prices are due a correction?
If you’re thinking about making a purchase — or listing a home for sale — we’d love to hear from you. Please share your story by emailing money@ft.com.