The battle among mortgage providers reignited this week, as Santander made a U-turn on its recent rate hike.
Halifax, Leeds Building Society, and HSBC joined the lender in also slashing rates across its residential mortgage product range.
Further price drops for borrowers came from Cumberland Building Society, which introduced a five-year fix for as low as 3.93%.
Here is the latest round of rate cuts from YourMoney.com’s ‘mortgage wars’ series.
Halifax kicked off the week by hammering down rates for homebuyers on select remortgage, product transfer, and further advance deals.
A two-year fixed rate to finance up to 90% loan to value (LTV) plummeted by 0.59% to 4.84%, while the 95% LTV equivalent was clipped by 0.31% to 5.20%.
Halifax makes price hikes and rate cuts on a range of products
For a five-year fixed rate, first-time buyers can enjoy a rate of 4.44% on a deal to finance up to 90% LTV – a cut of 0.53%.
However, the lender hiked prices on its remortgage products too, with a two-year fix up to 60% LTV going up by 0.12%, while a 75% LTV crept up by 0.02%.
The average two-year fixed residential mortgage rate stands at 5.58%, while the average five-year fixed alternative is 5.22%, according to Moneyfacts data.
HSBC lowered rates for residential and buy-to-let (BTL) customers, with some prices diving below 4%. A five-year fix at a maximum of 60% LTV fell below that milestone to 3.99% after a 0.25% cut. This deal for home-movers comes with a £999 fee included.
A three-year fix with no fee at 60% LTV decreased to 4.59% – a drop of 0.35%, while the 80% LTV equivalent was cut to 5.09%.
An array of mortgages on offer below 4%
In the remortgage market, a five-year fix at 60% LTV now costs 3.99% after a 0.05% discount (£999 fee required).
Santander reduced fixed rates for residential purchase mortgages up to 90% LTV and now boasts deals below the 4% mark.
A five-year fixed rate (with a £999 fee included) at 60% LTV is priced at 3.94% after a 0.10% cut.
The same reductions hit the five-year fix for deals with a 75% LTV and 90% LTV, now priced at 4.14% and 4.64% respectively.
A couple of mutuals also joined the party, with Leeds Building Society dropping prices across its shared ownership and residential products, with rates falling below 5%.
Cumberland Building Society matched the lender and decreased fixed rates for two and five-year deals to 4.26% and 3.93% respectively.
