Nationwide was the first lender to release a sub-4% rate, which it launched at the end of July. Since then, and following the Bank of England’s base rate cut last week, HSBC and Barclays have also launched sub-4% rates.
Now, Coventry Building Society, Halifax and First Direct have joined in.
Coventry Building Society slashes rates
The mutual has brought out a five-year residential purchase fixed rate at 65% loan to value (LTV) with a £999 fee priced at 3.9%.
It has also lowered residential rates by up to 0.52% and buy-to-let (BTL) rates by up to 0.25%.
An example includes its five-year fixed rate at 65% LTV with no fee, available for BTL remortgages, priced at 4.53%. It has the option of £350 cashback or the use of the remortgage transfer service.
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Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Seeing sub-4% rates back on the table is a great sign for the market and could lead to more activity in the latter part of the year.
“Last week’s Bank of England decision was the welcome news borrowers had been waiting for, and the sweep of rate reductions [that] has happened since should hopefully generate confidence among those looking to secure a new mortgage deal in the coming months.”
Halifax introduces sub-4% mortgage deal
A five-year fixed product at 60% LTV with the bank now has a rate of 3.99% following a 0.07% reduction and is available to homemovers and first-time buyers. The product also has a £999 fee.
Halifax has made cuts of up to 0.16% to its range, effective from 9 August.
This includes a five-year fixed deal at 90% LTV, priced at 4.84% following a 0.16% cut.
Across its two-year fixes, 60% and 80% LTV options have both been reduced by 0.1%, bringing the rates to 4.36% and 4.83% respectively. At 90%, a two-year fixed rate has been lowered by 0.11% to 5.24%. All products have a £999 fee.
First Direct cuts rates on over 100 products
Today, the bank announced mortgage rate reductions of up to 0.3 percentage points, reducing interest rates across its entire range of two-, three- and five-year mortgages. Alongside this, it has launched three products priced at 3.89%.
First Direct’s 3.89% rate is available on its 60% LTV 5 Year Fixed Standard, which is now available across three buyer categories: first-time buyers, homemovers and existing customers looking to switch.
Most of its mortgages are now priced under 5% after the bank cut rates on over 100 products.
The two-year fixed range starts at 4.29% on the 60% LTV 5 Year Fixed Standard, which is also available as a three-year fixed rate, starting at 4.19%.
The biggest rate reduction is on First Direct’s 3 Year Fixed Standard, which is available to first-time buyers, homemovers and existing customers. This is now offered at 4.19%, down from 4.49%.
The most significant rate reduction within its five-year fixed range was 0.23 percentage points, but all products up to 75% LTV available to first-time buyers, switchers and homemovers were reduced by at least 0.2%.
Within its remortgage offerings, rates were cut by up to 0.2 percentage points, with the 2 Year Fixed Standard and 2 Year Fixed Fee Saver now available at 4.59% and 4.79% respectively.
Liam O’Hara, head of mortgages at First Direct, said: “We are really pleased to be reintroducing sub-4% rates, the first time we have been able to do so since January, as we cut rates across more than 100 products today.
“A range of factors impact our pricing decisions, but we are absolutely committed to supporting our customers by reducing the cost of borrowing when we can, whether they’re making their first steps onto the ladder, moving house or remortgaging.”
He added: “We have focused our rate reductions on our two- to five-year fixed rate range as we continue to see the highest demand for those products, and we’ve reduced rates across a broad range of LTVs to support a broad range of customers with different needs.
“It’s also worth remembering that our mortgages are fully flexible and that we offer free unlimited overpayments on all our range, as well as 40-year maximum terms and product booking fees capped at £490. Earlier this year, we also introduced differential pricing for different buyer types so that we can ensure we offer competitive products tailored to our customers’ specific needs.”
This article is based on stories first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Coventry BS lowers rates and brings out sub-4% deals and Halifax intros sub-4% mortgage; April cuts rates – round-up
