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Some of Britain’s biggest lenders have began cutting mortgage rates this week, including sub-4% deals.
NatWest launched a deal on Tuesday with the cheapest five-year fixed rate currently on the market, according to financial information website Moneyfacts.
The rate sits at 3.71%, but borrowers will need to stump up a deposit of at least 40%. The NatWest deal also has a £1,495 fee.
NatWest made various rate cuts to its mortgage ranges on Tuesday.
Barclays also reintroduced some new mortgage products and reduced rates on a selection of deals on Tuesday.
Barclays’ new products include a five-year fixed-rate mortgage at 4.05% for people buying a home with a 25% deposit, with no product fee.
HSBC UK announced details of mortgage rate cuts across its ranges on Tuesday.
An HSBC UK spokesman said: “We’re frequently reviewing our mortgage rates and aim to remain as competitive in the market as possible. We’re really pleased we can offer even more customers rates that have dipped below 4%, some of our lowest rates since the start of the year.
“Our lowest product is still our 60% LTV (loan-to-value) five-year residential mortgage, which is offered at 3.84%, but we’re pleased to also now be offering 3.99% on our 70% and 75% LTV five-year residential mortgage ranges.
“We’ve also made further reductions in the higher LTV ranges offering 4.29% on our 80% LTV five-year residential mortgage, to further support those customers with smaller deposits and helping to make homeownership more accessible across a broader range of lending tiers.”
According to Moneyfacts’ data, the average two-year fixed homeowner mortgage rate on the market on Tuesday was 5.55%, down from 5.56% on Monday.
The average five-year fixed residential mortgage rate on Tuesday was 5.19%, down from 5.20% on Monday.
The Bank of England base rate was recently cut by 0.25 percentage points, to 5%.
Rachel Springall, a finance expert at Moneyfacts said: “The mortgage market was much calmer for rate re-pricing last week, but some of the biggest lenders in the country have since sprung into action.
“Any volatility in swap rates (which lenders use to price their mortgages) takes a couple of weeks to trickle through the market, so it’s positive to see some of the biggest lenders improving deals this week.
“It is essential consumers seek advice to navigate the mortgage maze, particularly to find the most appropriate deal based on true cost, not just those with a headline-grabbing rate.”
