Over the last week, HSBC, MPowered and Atom Bank joined Nationwide Building Society in making yet more mortgage rate cuts across its products.
Another week on from the last round of mortgage rate reductions has seen further moves in the market as banks and building societies re-price their deals.
Mutual Nationwide has slashed mortgage rates by as much as 0.31% on some deals, while the lowest rate on offer now stands at 4.29%.
For new borrowers moving home, a two-year fix at 60% loan to value (LTV) is available with a £999 fee at 4.65%, down by 0.14%.
As it stands, the average two-year fixed mortgage rate is now 5.48%, with a 60% LTV priced at 4.86% according to Rightmove’s data. Meanwhile, a three-year fix at 90% LTV with the same fee is now priced at 5.29%, down from 5.55% previously.
The first-time buyer space is also seeing competition, with a five-year fix at 60% LTV coming in at 4.34% (0.15% cut) and a two-year fix (75% LTV) is priced at 4.85%, a drop of 0.28%. This comes with a £999 fee included.
Banking giant HSBC has gone big on the reductions this week with cuts to its existing residential and buy-to-let customer switching ranges, plus cuts on its borrowing more range too.
This included a long list of offers and fixed fee-saver mortgages as well as standard fixes between 60% and 90% LTV.
A five-year fixed fee saver at 60% LTV has decreased to 4.64% for existing residential customers switching, while for 65% LTV borrowers, the rate on offer is 4.54% on a five-year fixed. But it comes with a hefty £1,999 fee.
Mortgage rate cuts move into 20th consecutive week
The average five-year fix on the market stands at 5.07% – a drop from 5.30% a year ago. An average five-year fix at 60% LTV stands at 4.46%.
Further decreases for borrowers are on offer with MPowered Mortgages too, which sliced some of its rates by up to 0.30%.
A five-year fix is on the market for 4.84% with a £1,999 fee and for the same term but lower £999 fee, borrowers can get a rate of 4.94%. The no-fee alternative comes with a 4.99% rate.
Remortgage customers opting for the 4.89% five-year fix also get free legal services and cashback incentives.
Meanwhile, Atom Bank dropped rates on products by up to 0.30%. It has a five-year fix at 60% LTV priced at 4.84% and for larger finance of your property – a 5.34% rate at 95% LTV. They come with free property valuations too.
‘First base rate reduction may arrive in late spring 2024’
After yet another series of rate cuts by providers, Matt Smith, Rightmove’s mortgage expert says “No news is often good news when it comes to the mortgage market, and yet another week – the 20th in a row – of marginal percentage point drops is positive news for home-movers.
“After the chunky drop in inflation was announced in mid-November, it looked even more likely there would be a third consecutive base rate hold. And while these pauses come off the back of falling inflation and a more positive economic outlook, the Bank has indicated that we’re unlikely to see any base rate drops until we’re well into 2024. However, markets are currently forecasting that the first base rate reduction may arrive in late spring next year.”
