According to experts, Santander has “fired” the starting gun, and more are set to follow in the coming weeks with experts saying that it is “only a matter of time” before more sub-4% mortgages return to the market
The mortgage rate war has truly begun as several lenders slash rates, with two cutting them below 4% for the first time this year.
Barclays and Santander have cut rates for a handful of its mortgage deals this week. From today, borrowers can apply for one of four new residential products of two and five-year fixed-rate deals at 3.99% at Santander, although they will need a 40% deposit as they are 60% loan to value (LTV). Those looking to remortgage have not missed out, as the lender is also offering a remortgage deal at 3.99% with a 60% LTV. The lender is also making reductions of up to 0.40 percentage points on more than 80 other mortgage products.
Barclays announced rate cuts across its mortgage range – including a 3.99% 5-year fixed-rate product at 60% LTV from Thursday. The lender has also made reductions across its residential, buy-to-let, and remortgage products, with cuts of up to 0.40% on selected deals.
Alongside the major lenders, Coventry Building Society has also cut rates today by all fixed purchase rates for new borrowers at 90-95% LTV and all fixed rates for existing customers at the same tiers. TSB has also updated its mortgage offering, including reintroducing its five-year fixes for first-time buyers and home movers at 90-95% LTV. The lender has also reduced two-year fixed first-time buyer and home mover rates up to 75% LTV and at 90-95% LTV by up to 0.1%.
Alongside this, its two-year fixed remortgage rates up to 75% LTV have been trimmed by as much as 0.15% and five-year fixes at the same tiers have fallen by 0.1%. Following the month’s base rate cut, TSB has amended its variable rates. Its homeowner variable rate is now 7.99%. Earlier this week, NatWest cut some of its mortgage rates by up to 0.36%.
The cuts follow the Bank of England’s base rate move last week which took it from from 4.75% to 4.5%. Before the decision was announced, Halifax, HSBC and Clydesdale Bank slashed rates, followed by Yorkshire Building Society on the day.
According to experts, Santander has “fired” the starting gun, and more are set to follow in the coming weeks. Rachel Springall, at financial data provider Moneyfacts, said that it was “only a matter of time” before sub-4% mortgages returned due to money market swap rates falling in recent weeks, coupled with a cut to the bank base rate. She added: “The millions of mortgage borrowers looking to refinance this year need some good news, so it’s safe to say there are big expectations for more lenders to compete on price to entice new business in the coming weeks.”
Lenders which have cut mortgage rates
- Santander
- Barclays
- TSB
- Coventry Building Society
- Halifax
- HSBC
- Clydesdale Bank
- Yorkshire Building Society
