A new wave of fixed mortgage rate cuts is on the way for lucky borrowers on Friday 13 as home loan costs continue to fall.
Major high street lenders TSB, Nationwide and HSBC both said they will cut their rate across their range of fixed rate products tomorrow in the latest flare up in the mortgage price war.
TSB made its second round round of cuts in a single week will take effect tomorrow just three days after reductions on Tuesday.
Rates of five year fixed mortgage are being slashed by 0.3% to 3.79% for borrowers with LTVs no higher than 60%, equivalent to a 40% deposit. That means TSB joins the growing ranks of the sub-4% club. For borrowers with a 25% deposit, the reduction is even bigger, by 0.35% to 4.14%.
Nationwide is cutting its flagship five year fixed rate offer to as little as 3.78% for borrowers on LTVs up to 60% and 3.94% for 25% LTV mortgages for new borrowers.
Meanwhile HSBC, which never reveals the scale of the cuts, says new rates will come into force from midnight tonight with two, three and five year deals becoming cheaper at most loan to value (LTV) deposit levels up to 90%, and even 95% for some first time buyers.
Aaron Strutt, product director at brokers Trinity Financial said: ”This is a pretty decent time to be applying for a mortgage given the scale of rate cuts we are seeing at the moment.
“After the mini budget many people thought it would be a lot longer before we saw so many sub-4% rates again.
“Funding costs have come down and lenders are finally passing on the price reductions. Many of the banks and building societies are not as busy as they would like to be and they are lowering their rates to increase demand.
“If you have applied for a mortgage recently it is important to monitor the rate and make sure you swap to a cheaper one with the lender if and when it comes available.”
There are so many price reductions at the moment that it is fairly common for borrowers to switch deals with their lender at least two or three times before their mortgage completes.”
A raft of smaller lenders are also making moves, including Mpowered, Clydesdale, Suffolk Building Society. Atom and Pepper,
Clydesdale is lowering prices by up to 39 basis points, with deals starting from 4.02% and product transfer exclusives from 3.99%.
MPowered is also cutting rates tomorrow by up to 27bps, with some three and five-year fixed rates falling below 4%.
Suffolk Building Society is also lowering rates tomorrow by up to 20bps on five-year fixes for purchase or remortgage.
Mortgage rates are falling because of intense competition at a time when City swap rates are drifting down in anticipation of more cuts from the Bank of England, potentially as soon as next week.
