Lenders and mutuals have lowered mortgage rates below 5%, as the competition to win over potential homeowners continues to heat up.
TSB’s mortgage plummeted by 0.35% to 4.89% today, and its rates are being slashed across its two and five-year fixed purchase and remortgage products too, up to 90% loan to value (LTV).
Nationwide has also lowered its rates. The reductions include 5.99% (down from 6.29%) at 60% LTV for new buyers, with prices tracking the base rate by 0.74 per cent for two years.
Borrowers at the mutual can also enjoy a variable rate of 6.22% at 80% LTV, down from 6.44%.
For first-time buyers, deals have fallen by 0.40% and the two-year tracker rate at 60% LTV is 6.14%, plus a 75% option at 6.19%.
This compares to the average two-year fixed residential mortgage rate of 6.47%, while Moneyfacts data shows the average five-year fixed residential mortgage rate stands at 5.96% – down by 0.01% compared to yesterday.
‘Great to see fresh rate reductions’
Yorkshire Building Society (YBS) has reduced rates by up to 0.23% and joined competitors by introducing a sub-five per cent fixed rate deal. Its five-year fixed rate deal is 4.92% at 75% LTV, plus a £1,495 fee for purchase and remortgage.
Reductions at YBS include a two-year fixed rate at 75% LTV at 5.64%. Potential homeowners will need to pay a £495 fee and can enjoy a free standard valuation plus £250 cashback.
Rates have fallen across the board at Barclays too, with its residential range, select purchase only, remortgage only and purchase and remortgage products falling by up to 0.60%.
YourMoney.com has reported on rates falling for two months now, and Stephen Perkins, managing director at Yellow Brick Mortgages, welcomed the cuts.
He said: “It’s great to see some fresh rate reductions despite fears that they may be coming to an end following the slight reversal in swap rates.
“This highlights very clearly the fact that lenders still have money to lend and are fighting with each other over a smaller number of borrowers. Right now, market share is an absolute focus of the big lenders.”
