The mortgage rate war “rages on” as major lenders have announced a fresh round of rate reductions.
Both HSBC and NatWest announced reductions for their mortgage rates.
HSBC became the latest major lender to announce rate reductions, specifically across its residential mortgage range.
These changes include two and three-year fixed fee saver at 60, 90, and 95 per cent LTV decreasing and five-year fixed fee saver at 60, 80, 85, 90, and 95 per cent LTV decreasing.
Similar reductions were announced for the bank's residential first time buyer range, which also featured its two and three-year fixed fee saver at 90 and 95 per cent LTV decreasing.
According to Self Employed Mortgage Hub founder, Graham Cox, this showed “lenders are falling over themselves to stimulate demand”, which he described as “great news for anyone looking to buy a home”.
Additionally, Contractor Mortgage Services director, Ken James, stated this represented a “wave” of rate cuts that would “inject further competition into the mortgages market”.
Meanwhile, Montgomery Financial founder, Charles Breen made a bold prediction: “Are we within touching distance of two-year products for higher LTVs such, as 90 per cent, starting with a 3? I think we are.”
In addition to HSBC, NatWest also announced a series of reductions including to its purchase mortgage range, with a reduction of up to 40 basis points on two year deals and 36bps on five year deals.
A similar reduction was announced across NatWest’s remortgage range, announcing cuts of 35bps and 69bps on selected two and five year deals.
The lender also announced that its buy-to-let products will also experience rate reductions, with the purchase product being reduced by 41bps and 48 bps on selected two and five year deals.
According to John Charcol's head of marketing, Nicholas Mendes, this means the lender will become the latest to offer a “sub 4 per cent deal”.
Mendes described this as “following in the shadows of other high street lenders like HSBC, Virgin, and Santander”.
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