The battle to win over borrowers has reignited this week after HSBC and Barclays joined Nationwide in slashing mortgage rates below 4%.
HSBC dropped residential and buy-to-let (BTL) rates below 4% for first-time buyers (FTBs), existing customers and homemovers.
If you are looking for a five-year fixed rate at 60% loan to value (LTV), deals begin at 3.95% and 3.92% for a ‘premier’ customer deal.
The provider has made further cuts in its remortgage range, but they don’t meet the headline-grabbing BTL deals. The rate for a standard two-year remortgage fix at 60% LTV is 4.59%, and the three-year equivalent is 4.49%.
For a longer-term option, you can find a five-year fix for 4.24%.
Remortgage deals on the BTL side including its existing customer, purchase and existing customer borrowing more range begin at 4.44% for a two-year fix. This goes down to 4.19% for a five-year fix.
Base rate kicks off cutting spree
The hefty changes to the price ranges offered by lenders follow the reduction of the Bank of England base rate. Last week, the Monetary Policy Committee (MPC) decided to cut the base rate from 5.25% to 5%, marking the first time it has been reduced since March 2020.
The decision to change the base rate for the first time in a year sparked cuts from TSB and NatWest, which this week have been eclipsed further.
However, the first firm to go below 4% was Nationwide, which slashed mortgage rates to 3.99% at the end of July.
From tomorrow, Barclays will add a 3.84% rate to its purchase range, the solitary offering below the 4% threshold from the lender.
That will be on offer for its fixed rate that finances 60% of your property for five years. One thing you will have to consider is the £899 fee as part of the deal, which has been reduced from 4.04%.
The lender’s two-year equivalent with no fee will fall from 4.61% to 4.43%, and the £899 fee deal for the same 60% LTV will reduce from 4.42% to 4.22%.
Its remortgage deal with a £999 fee falls just above the 4% marker for a five-year fix. That deal is priced at 4.06% (down from 4.26%) at 60% LTV.
Elsewhere, the five-year fixed rate at 75% LTV will drop from 4.4% to 4.2%, and its two-year fixed rate at 60% LTV with a £999 fee will fall from 4.6% to 4.4%.
The latest drops follow NatWest’s foray into the sub-4% rate, which is only available directly and not through an intermediary. Earlier this week, the lender launched a new best-buy mortgage with a five-year fixed-rate mortgage priced at 3.97% with a £1,495 fee.
