High street lenders, mutuals and challenger banks continue to battle it out to win over borrowers this week, cutting rates on a host of products.
Borrowers are spoiled for choice by HSBC, which released a five-year fixed premier exclusive deal up to 90% loan to value (LTV) priced at just 3.79%.
The lender is backing up its rate cuts from earlier this year by slashing prices on the existing customer switching range.
A fee-saver two-year and three-year fix rate has gone down to 4.54%, when financing up to 60% loan to value (LTV), while it plummets further for a five-year fix, now 4.04%.
Standard two and three-year fixed rates are reduced on 60%, 80%, 85% and 90% LTV deals too, starting from 4.29%.
Prices are slashed on its first-time buyer range too, with two and three-year, fee-saver deals falling to 5.19% at 90% LTV.
Homebuyers jumping on the property ladder can enjoy a five-year fixed, fee-saver for 4.39%, a standard rate of 4.24% and a premier exclusive rate for as low as 4.21% – all up to 90% LTV.
Metro Bank enters the mortgage wars
Metro Bank brought back a 95% LTV deal on its residential range. A purchase-only two-year fix starts from 5.99% and five-year fixed rates start from 5.79%.
According to Moneyfacts data, the average five-year fixed residential mortgage rate is 5.24% while the average buy-to-let residential mortgage rate today is 5.61%.
An average rate for a two-year fix stands at 5.60% – down from an average of 5.73% on the previous working day.
The provider also made hefty cuts on its buy-to-let range, dropping prices to 3.99% on two-year fixes at 65% LTV (5% fee). If you want a longer period, a five-year option is available for 4.59% at 65% LTV which also has the same fee.
Skipton makes cuts
Skipton Building Society dropped its two-year fixed rate for borrowers wanting to finance up to 75% of their property. That is on the market at 4.72% with a £1,495 fee – a drop from 4.99%.
It comes at a time when its Track Record mortgage is at its lowest-ever rate of 5.35% – plummeting 0.14% since its introduction last May.
A fee-free five-year fixed rate at 90% LTV fell to 4.84% while a rate of 4.96% is available up to 95% LTV, with an additional £1,295 fee.
Santander and MPowered Mortgages make cuts
For the second week running Santander also slashed rates on an array of products. It was the latest mortgage provider to slash rates below 4%, by cutting a remortgage offer to 3.89%.
Purchase-only deals will drop by 0.45% and selected standard residential fixes will dip by 0.05%.
For borrowers looking for a new build exclusive fixed rate, prices will go down between 0.17% and 0.35%.
MPowered Mortgages also joined the rate-cutting exercise in the fixed rate sector thanks to a couple of notable reductions. A five-year fix at 75% LTV is priced at 4.28% with a £999 fee and an 80% LTV equivalent is marked at 4.38%.
