- Barclays is set to reduce fixed-rate mortgages by 0.27 percentage points
- Santander slashed its deals by up to 0.16 as Halifax shaved up to 0.19 from rates
- NatWest has now slashed its rates twice, cutting up to 0.23 percentage points
Five of the biggest lenders are in a mortgage rate-cutting war as they fight for new borrowers.
HSBC and Barclays yesterday announced fresh cuts to their deals for the second time in two weeks, sparking hope for struggling Britons crippled by high costs.
Barclays will reduce a selection of its fixed-rate mortgages by as much as 0.27 percentage points, while HSBC is due to unveil cuts today.
This follows a recent flurry of price drops across the market. Yesterday, Santander slashed its deals by up to 0.16 percentage points, one day after Halifax shaved up to 0.19 from its rates.
NatWest fired the starting gun two weeks ago when it cut deals by up to 0.17 percentage points.
It went further on Tuesday – cutting by up to 0.23 percentage points.
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Customers could see a full price war, as lenders compete for their business. This would bring welcome relief to many, who have seen monthly repayments rise by hundreds of pounds in recent years.
Ranald Mitchell, of broker Charwin Mortgages, said: ‘HSBC and Barclays have launched an all-out assault on interest rates, declaring a full-scale financial war that borrowers are sure to rally behind.
‘Many homebuyers and mortgage holders will be hoping this one escalates into a full-blown campaign.’
Yorkshire Building Society also joined the race, cutting rates by up to 0.20 percentage points on some products.
The Bank of England is expected to cut interest rates as soon as next month for the first time since March 2020 now inflation has fallen back to its 2 per cent target.
This would ease pressure on homeowners crippled by high interest rate charges on their loans.
Two-year and five-year fixed-rate mortgages were yesterday averaging 5.93 and 5.51 per cent respectively – largely unchanged from January 1’s 5.93 and 5.54 per cent.
