Following the base rate reduction to 4.25%, a mix of firms including TSB, HSBC and Barclays have announced cuts to a range of borrowing offers.
HSBC has reduced mortgage rates across a number of its products, available from 19 May.
This will apply to two-, three- and five-year fixes up to 95% loan to value (LTV). The rate cuts will affect mortgages for existing residential customers switching, borrowing more, residential first-time buyers and homemovers, and remortgage borrowers.
TSB made some reductions to its mortgage rates across the residential and buy-to-let (BTL) ranges.
This applies to two-year fixed first-time buyer and homemover rates up to 85% LTV, which have been increased by 0.1% and now start at 3.99% up to 60% LTV with a £995 fee, and up to 4.59% at 80-85% LTV with no fee.
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Its two-year fixed remortgage rates up to 60% LTV rose by 0.2% and now start at 4.09% with a £1,495 fee or 4.49% with no fee.
Across its BTL range, five-year fixed purchase and remortgage rates at 75-80% LTV have gone up by 0.2%.
Elsewhere, the bank has lowered two- and five-year fixed BTL purchase and remortgage rates up to 60% LTV by 0.1%.
Changes have also been made to its shared ownership product at 95% LTV, selected Own New options, its Retrofit Boost five-year fix, and selected remortgage deals.
Barclays made further reductions to its rates, with more pricing below the 4% level.
This includes a rate of 3.85%, which applies to its existing borrower reward product. This is fixed for two years and available at 60% LTV with a £999 fee.
The fee-free option has a rate of 4.06%, down from 4.3%.
It also reduced selected one- and five-year fixed rates within this offering, and the offset two-year tracker with a £1,999 fee, which fell from 6.15% to 5.98%. This is available at 70% LTV.
The lender cut rates across residential purchase and remortgage, applied to selected two- and five-year fixes up to 75% LTV.
Nationwide’s stress rate change
Elsewhere, Nationwide lowered its stress rates for mortgage affordability by between 0.75% and 1.25% to allow borrowers to access larger loans.
This follows a reminder from the Financial Conduct Authority (FCA) that lenders already had the flexibility to adjust affordability stress tests, as the regulator consults on simplifying mortgage rules.
Nationwide said that due to these changes to its standard stress rate and the stress rate applied to first-time buyers and homemovers fixing for at least five years, borrowers could access an average of £28,000 more than previously.
The change will benefit all borrowers, including first-time buyers, who can make use of its Helping Hand range, which allows for borrowing up to six times their income up to 95% LTV.
