HSBC, TSB and Halifax have announced rate reductions on a range of offers, with a batch of deals well below 4%.
Rates have plummeted below that milestone ahead of the anticipated base rate cut voted by the Monetary Policy Committee (MPC) on 8 May.
The Bank of England base rate is 4.5% after the MPC opted to hold in order to tackle inflation.
Meanwhile, the average two-year fixed mortgage rate is 5.18% and the five-year equivalent is 5.1%, according to Moneyfacts data.
The average two-year buy-to-let (BTL) residential mortgage rate is 5.04%, while for five years, it is 5.33%.
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Here is a round-up of the latest movements in the mortgage market.
HSBC’s lower rates
HSBC has continued to lower rates, with residential cuts of up to 0.2% and BTL and international mortgages down by around 0.25%.
The lender, which boosted affordability options for buyers last month, said this was the first time all purchase and first-time buyer rates have been under 5% since 2022.
On the purchase side, residential rates have been cut by up to 0.2%, including its two-year fixed rate at 95% loan to value (LTV) with no fee for purchase and first-time buyers standing at 4.99%.
In its remortgage range, two- and five-year residential rate reductions have been made, with its two- and five-year fixed rates at 60% LTV with a £999 fee coming to 3.89% for non-premier and 3.84% for premier.
Within its BTL range, pricing dropped by around 0.25%. Its two-year fixed rate at 60% LTV with a £3,999 fee stands at 3.79%, while it is 4.04% with a £1,999 fee.
On the switcher side, its two-year fixed rate at 60% LTV with a £999 fee for existing premier customers stands at 3.79%.
TSB and Halifax make bank holiday cuts
TSB will cut selected residential, product transfer and additional borrowing rates by up to 0.15% today (2 May).
Within its residential range, its two-year fixed remortgage deal between 60% and 85% LTV will fall by around 0.15%.
The lender’s five-year fixed remortgage products will also decrease by up to 0.25%.
In its product transfer range, residential two-year fixed rates from 60% to 85% LTV fell by around 0.15%.
In the additional borrowing range, residential two-year fixed rates from 60% to 80% LTV have decreased by around 0.1%.
Halifax has lowered selected homebuyer, first-time buyer and remortgage fixed rates by around 0.34%.
The changes came into effect on 1 May, with the largest reductions taking place in its remortgage range.
Halifax’s two-year fixed rate at 60% LTV with no fee reduced by 0.34% to 4.51%.
Its five-year fixed rate with no fee at 60% LTV also decreased by 0.32% to 4.19%.
The complete by and product end dates were also extended, with data changes also applying to its product re-transfer and further advance deals, which were not reduced.
