The lenders have reduced the cost of borrowing across their ranges of residential and buy-to-let mortgages.
HSBC reduces 300 rates
HSBC applied reductions to 300 deals spanning multiple ranges including existing borrower mortgages, remortgages, residential purchases and buy-to-lets.
Borrowers purchasing a house with a 40% deposit can now access a five-year fixed rate of 4.34% for a fee of £999. A two-year fixed rate alternative is available at 4.78%.
Remortgaging borrowers with 20% equity can fix for five years at a rate of 5.04% for a fee of £999. Those looking for a shorter mortgage deal can opt for a two-year fix at 5.64% for the same fee.
Barclays makes borrowing cheaper
Barclays, meanwhile, has applied rate cuts to purchase-only deals.
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Among the reductions, the bank has cut its two-year fixed rate at 60% loan to value (LTV), which means the borrower must put down a 40% deposit, from 4.99% to 4.68%. A fee of £899 applies. The fee-free option at the same tier has had a rate cut of 0.25%, bringing it to 5.13%.
Medium-term fixed rates continue to be cheaper than short-term fixes. A borrower with a 40% deposit opting for a five-year fixed deal can lock in to a rate of 4.23% for a fee of £899.
Coventry cuts purchase rates up to 0.21%
Examples of Coventry Building Society’s reductions include its two-year fixed rate at 85% LTV with £500 cashback paid on completion, available at 5.34%. The deal is available to first-time buyers only.
The building society’s five-year fixed residential rate at 65% LTV is now priced at 4.59% with the option of £350 cashback incentive or using Coventry’s remortgage transfer service, which means it will look after the legal work on your behalf.
The lender has also cut rates on its buy-to-let range by around 0.15%.
Skipton cuts BTL and purchase costs
For borrowers with a 40% deposit, five-year fixed rates for home purchases start from 4.64% with a fee of £1,295. A two-year fixed rate alternative is available at 5.18% with a lower fee of £495.
Borrowers looking for a remortgage who have 40% equity in their homes can access a two-year fixed rate of 5.19% for a fee of £495. The five-year equivalent is available at 4.65% with a fee of £1,295.
The society’s buy-to-let mortgage rates now start from 4.88% for a five-year fixed rate at 60% LTV. A fee of £2,995 applies.
NatWest is early mover
A day before the Monetary Policy Committee (MPC) met to decide on the direction of the base rate, which saw rate-setters vote 7-2 in favour of holding it at 5.25% for the seventh month in a row, NatWest moved to cut its mortgage rates.
Changes have been applied up to 90% and 95% LTV, depending on the term.
An example includes its five-year fixed rate remortgage at 80% LTV, which has gone from 5.14% to 4.97%. The product comes with a £1,495 fee, with the option of £250 cashback.
In Natwest’s new business first-time buyer range, its two- and five-year fixed rate purchase products have been reduced by up to 0.12%. This includes its no-fee two-year fixed rate at 90% LTV with £250 cashback going from 5.8% to 5.7%.
The lender’s five-year fixed rate purchase with a £995 fee at 90% LTV has fallen from 5.04% to 4.92%. It also has £250 cashback available.
The decision by banks to start cutting rates will be welcome news to borrowers who are due to remortgage soon. But they will still experience a jump up in their monthly mortgage payment as, according to a report by the Bank of England’s Financial Policy Committee, more than a third of borrowers are still paying less than 3% on their mortgage rate.
It added that while most fixed rate mortgage pricing had risen since the second half of 2021, the full impact had not yet been passed through to all mortgagors.
