Mortgage borrowers may be set for a boost from falling rates and relaxed lending criteria.
In recent days, the best buy mortgage deals have fallen below 4% off the back of falling swap rates.
On the downside, this is a consequence of economic concerns about Trump tariffs but it could mean cheaper borrowing for homebuyers, even if bills rise elsewhere.
Santander has launched a two-year fixed rate at 3.97% today for a 40% deposit, while Danske Bank currently has a deal at 3.73%.
Meanwhile, major lender Halifax has changed its stress test rates and affordability criteria, which could boost borrowing power by up to £38,000.
Commenting on the changes, Hina Bhudia, partner at Knight Frank Finance, said: “From rate cuts to changes to affordability criteria, the lenders are doing everything they can to win new business after years of below par results.
“The outlook is hugely uncertain so there is real push to make hay while they still have the scope to cut rates. This is great for borrowers for the time being, but whether it lasts will hinge on whether the trade war escalates and any subsequent impacts on bond market stability, investor sentiment and inflation. Those are big open questions.”
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