Mortgages.scot

As this week goes by we are seeing gilt yields, swap rates and even gas prices tending downwards. The news that Rishi Sunak is the new PM and his comments so far are calming markets.

Reductions

So far a small number of lenders have cut rates this week by as much as 0.5%. 5-year fixed-rate mortgages are benefitting most. Rates were already above 6% but are falling back down into the 5% band.

HSBC, Santander, and Coventry BS are among those reducing rates.

Heading in the right direction

Whilst it's good news there should be caution with optimism. We still need to find out what the new PM will do in the next budget. The news today is that is being delayed into November. It is clear that 'difficult choices' are on the PM's mind and that will either further calm market or set them off again, I suspect the former over the latter. Although I doubt the general public will feel as calm as the markets when the budget plan is announced.

Time will tell. For now, it is good to be saying something positive!