Swap rates haven't moved much since the Bank's decision to cut the base rate last week, but the lenders are clearly growing more confident about the direction of travel when it comes to the borrowing costs.
A jump in gilt yields during the “mini-crisis” in January forced fixed mortgage rates higher but with calm returning to the money markets yields in recent week have drifted back down again.
The housing market received a significant boost today when two major lenders dropped headline mortgage rates back below 4%.
“There is clearly a need for more competitively priced rates with so many first-time buyers keen to get on the property ladder this year and a reported 1.8 million homeowners needing to remortgage.
Barclays and, Santander, all among the biggest players in the mortgage sector, marked the return of sub-4% lending for the first time since November.
