Mortgages: Barclays and Santander cut rates as competition intensifies

Competition has intensified among mortgage lenders for people who are searching for a new deal, bringing some relief to those facing higher bills. The firms said they would reduce rates on some of their products on Wednesday by up to 0.82 percentage points. Interest rates fluctuate based on the Bank of England's base rate and market conditions. "This is excellent news for those who have been worrying about coming off ultra-low mortgage rates into a higher rate environment and will help ease the pain with the jump being less than they may have feared." For five-year deals, the average rate is now 5.37%. The impact of relatively high mortgage rates is still likely to bring down house prices and increase arrears during this year, according to forecasters.

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