Mortgage wars return: HSBC, Barclays and NatWest slash rates

In an interview with The Guardian, Andrew Bailey said if news on inflation continued to be positive, the central bank could be “a bit more activist” with cutting interest rates.

His comments have sparked even more reductions across the market, with Santander already committed to lowering rates.

Could we be heading for the same mortgage wars that hit the sector during the summer of last year? Here’s a round-up of the rates before they are set to drop even lower next week.

This week, HSBC lowered pricing by as much as 0.16% on two- and five-year fixes for residential homemovers and first-time buyers, and has made cuts of up to 0.25% on buy-to-let (BTL) mortgage rates.

HSBC’s lowest rate within its residential range is its five-year fix at 60% loan to value (LTV) with a £999 fee, priced at 3.83% for remortgage.

Sponsored

How life insurance can benefit your health and wellbeing over the decades

Sponsored by Post Office

At 70% and 75% LTV, corresponding options have rates of 3.99%.

The two-year fixed remortgage at 60% LTV and with a £999 fee has been cut by 0.05% to 4.14%.

For purchase and homemover customers, HSBC has reduced a five-year fixed rate deal at 85% LTV with a £999 fee by 0.08% to 4.16%. This product has £350 cashback.

Across its first-time buyer range, a five-year fix at 80% LTV and the equivalent deal at 90% LTV have both been lowered by 0.03% to rates of 4.16% and 4.54% respectively. Each product has a £999 fee and £350 cashback.

For existing borrowers switching rates, HSBC has lowered the rates of five-year fixed deals at 60% LTV and 85% LTV by 0.08% to 3.74% and 4.16% respectively. These have a £999 fee.

Across its BTL remortgage range, the lender reduced the rate of its five-year fix at 65% LTV by 0.2% to 3.99% and the 75% LTV option by 0.06% to 4.19%. The products come with a £1,999 fee.

NatWest lowers mortgage rates and removes select sub-4% options

Meanwhile, NatWest cut mortgage rates on products for residential and BTL borrowers.

This includes its fee-free two-year fixed residential purchase product at 80% LTV, which has dropped by 0.04% to 4.7%, and a high-value deal at the same tier, also fixed for two years, which has been lowered by 0.1% to 4.55%. This product has a £999 fee.

Also at 80% LTV, the lender lowered the rate of a two-year fix with a £1,495 fee by 0.1% to 4.4% and the option with a £995 fee by the same amount to 4.45%.

Reductions were also made on two-year fixed purchase deals at 85% and 90% LTV by as much as 0.1%, as well as its two-year fixed remortgages at 80% and 85% LTV, which have gone down by up to 0.15%.

Additionally, mortgage rate cuts have been made to select five-year fixed purchase and remortgage deals up to 90% LTV.

For first-time buyers, NatWest has cut two- and five-year fixed purchase rates at 85% and 90% LTV by as much as 0.1%.

Elsewhere, BTL, green BTL and green residential mortgage rates have been lowered.

From today (4 October), NatWest will withdraw some of its sub-4% mortgage deals including a two-year fixed purchase at 60% LTV, which had a rate of 3.69% and a £3,499 fee, the corresponding remortgage, which was priced at 3.93%, and the equivalent five-year fixed remortgage, priced at 3.9%.

Barclays launches deals and cuts pricing

Lastly, Barclays announced reductions to its residential purchase and remortgage products.

This includes its two-year fixed purchase deal within its premier range at 60% LTV with an £899 fee, which has gone down from 4.19% to 3.96%. Meanwhile, the equivalent standard product has dropped from 4.22% to 3.99%.

The fee-free option has been lowered from 4.43% to 4.35%.

At 85% LTV, Barclays’ two-year fixed purchase option with an £899 fee has been cut from 4.55% to 4.46%, and at 90% LTV, the fee-free two-year fix will fall from 5.38% to 5.13%.

Changes have also been made to select five-year fixes, green mortgage products, springboard and mortgage guarantee deals.

Its remortgage-only product at 85% LTV has been reduced, with the two-year fix going down from 5.82% to 5.32% and the five-year fix falling from 5.03% to 4.93%. These both have £999 fees.

Barclays has also launched a two-year fix to its premier range at 90% LTV with a £899 fee, priced at 4.85%, and a fee-free five-year fix at 60% LTV with a rate of 3.92%.