UK house hunters and remortgagers are in for an early holiday present – a price war among mortgage lenders. The pull back in the high amount of demand within the UK housing market is now creating quite a buying advantage for those looking to either purchase a house or remortgage their current house. The market has now reached a point of such few applicants of new mortgage loans, lenders are dropping their interest rates and that is creating a so-called price war within prevalent as well as B-level mortgage lenders.

A large, well-known banking giant, HSBC, is days away from launching its lowest five year fixed mortgage, ever.  Other lenders have already dropped many mortgage loan products to rock bottom levels, and house hunters are able now to potentially save thousands of pounds each month.

David Hollingworth, of mortgage brokers London & Country, commented on the current trend developing within the lender community, saying: “While I am always reluctant to use the term ‘price war’, I really think that’s what is happening.”

Ray Boulger with John Charcol, commented on lenders cutting rates, saying: “This is great news for borrowers.

"Lenders have to stay competitive to get business and we have seen a steady stream of lenders cutting their fixed rates.  Other lenders are sure to follow in the next few weeks.”

Boulger added: “Being able to switch to the best deals will save tens of thousands of pounds over five years.  People coming to the end of their deals and reverting to Standard Variable Rates should remortgage straight away.”