Last week Nationwide reduced rates across the majority of its fixed rate mortgages by up to 0.45% across products for first-time buyers, homeowners remortgaging and switching borrowers.
The mutual has dropped the rate of a three-year fix at 60% loan-to-value (LTV) to 4.99%. Its five-year fix has been clipped by 0.2% to 4.74%, while the current average rate stands at 4.98% – down from 5.80% a year ago.
For those with a 10% deposit (90% LTV), the five-year fixed rate has been cut by 0.15% to 5.25%, with all deals coming with a £999 fee.
Meanwhile, Barclays introduced further reductions of rates on a selection of products across its residential, buy to let and reward ranges.
Its five-year fixed up to 85% LTV comes with a £999 product fee, and it has decreased from 5.63% to 5.43%. This is available from a minimum borrowing of £5,000 to a maximum of £2m.
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Halifax rates will ‘strike a fine balance between both worlds’
The five-year fixed ‘great escape’ deal up to 85% LTV, with no product fee, has been slashed by 0.20% – from 5.85% to 5.65%.
Halifax is introducing three-year fixed rate remortgage products at 5.28% up to 60% LTV with no fee included. This rate comes in at 5.08% when a £999 fee is included.
Three-year fixes without a fee for a higher LTV up to 90% are on offer to homeowners for 5.84% and at 5.64% with a £999 fee.
Nicholas Mendes, mortgage expert at John Charcol, said: “A much-needed addition to the three-year fixed rate proposition from Halifax, we’ve seen many mortgage holders opting against a two-year fixed due to the rate but equally cautious with opting for a higher five-year fixed rate.
“This latest edition from Halifax will help ease the pressure but also strike a fine balance between both worlds for mortgage holders.”
Elsewhere, TSB joined the wave of reductions by dropping rates on two- and three-year fixed residential, product transfer and additional borrowing rates by up to 0.50%. This includes the launch of a new three-year fixed rate at 4.99%, available to first-time buyers and home movers.
‘The trend of steady rate-drops to continue’
App-based lender Atom bank also added further reduced rates across its mortgage products by 0.10%, geared towards homeowners with poor credit ratings.
The lender has made the cuts on its five-year ‘near prime’ purchase and remortgage products and has made bigger reductions of up to 0.20% on its three-year rates for ‘prime’ accounts too.
Rightmove expert, Matt Smith, said: “The average two-year fixed mortgage rate is now below 6%, which while still very high compared to the ultra-low levels of recent years, is further evidence of the positive downward trend of fixed rates. Average rates have fallen fractionally across all loan-to-value brackets this week, with all rates now lower than this time last year, though this does compare to the post mini-Budget period.”
He added: “We expect the trend of steady rate drops to continue for now, and the next key highlight to look out for will hopefully be a sub-5% rate on offer in the important mass-market 85% LTV bracket.”