Lenders are once again competing to win over homeowners by cutting mortgage rates across a host of product ranges.
Barclays has slashed rates on its residential purchase and reward ranges by up to 0.26%. This includes a two-year fixed rate up to 60% loan to value (LTV) going down from 5.36% to 5.10% with an £899 fee.
Its two-year fixed rate offer up to 75% LTV has been cut 0.22% to 5.20% for the same fee amount. This compares to the average rate of 5.84% for the same period – a drop from 6.24% a year ago.
HSBC made cuts by reintroducing its two-year fixed fee saver products for homemovers and first-time buyers, up to 95% LTV with a £250 cashback offer.
The lender dropped rates on its remortgage rates too, offering a five-year fix up to 60% LTV with a £1,999 fee for 5.02%.
NatWest and Halifax send rates south
Halifax has decreased rates on new-build products for LTVs over 90%. The lender is extending the end and complete dates on homebuyer, remortgage, shared ownership, and equivalent home product ranges.
NatWest has also made some hefty deductions, slashing its remortgage rates by up to 0.40%, from 7.55% to 7.15% and reducing five-year fixed rates to 6.68%– down from 6.78% previously.
The reductions also appeared on its first-time buyer mortgages and green mortgage rates, falling by 0.22% and 0.23% respectively. It also released a fresh range of 100% LTV switcher products for buyers to consider.
Best two-year fixed rates have dropped by more than 0.80%
Accord, the intermediary-only lender, has cut rates across its residential range for higher LTVs, as rates have fallen by up to 0.23% on deals up to 75, 80 and 85% LTV. Borrowers can enjoy discounts rising to 0.22% on the smallest deposits at 90 and 95% LTV.
Leeds Building Society also announced rate cuts of up to 0.45% on selected fixed rates for existing and new customers.
Katie Brain, consumer banking expert at Defaqto, said: “By the end of October, some of the best two-year fixed mortgage rates had dropped by over 0.80% since the start of September.
“We have started to see mortgage rates, with lower LTV five-year fixed rates also going below 5%. The fees for the sub 5% five-year fixed rates have also dropped to normal levels.”
