Three major mortgage lenders this morning announced a cut in rates that could offer some relief for borrowers currently on the market.
Barclays announced that they are reducing rates on several products, including loans for homeowners and buyers looking to remortgage.
More than 140 mortgage rates were reduced by HSBC, while TSB also announced a selection of rate cuts.
For people with a 25% deposit, Barclays are now offering a 5-year fixed-rate for buyers at 4.44%, down from the previous rate of 4.73%. This comes with a produce fee of £899.
Homeowners who hold an existing mortgage with HSBC and are in search of a new fixed deal, will benefit from rates that have been cut by up to 0.11%. New business residential rates have also been cut by to 0.18% by the bank.
An HSBC UK spokesperson said: “There are a number of factors that are taken into account when setting mortgage rates, and following a review, we are reducing over 140 mortgage rates by up to 0.18%. We continue to keep our rates under review.”
Also included in the changes announced by HSBC is a 2-year mortgage at 5.57% for buyers with a 10% deposit and no fee, which has been reduced by 0.11%.
Some home mover and first-time buyer rates were reduced by up to 0.10% by TSB. A select number of remortgage rates have also been lowered by 0.10%.
Elsewhere in the market rates have increased, according to financial information website Moneyfacts, with some average fixed mortgage rates rising slightly towards the end of the week.
The average 5-year fixed residential mortgage rate edged to 5.50%, up slightly from 5.49% the previous day.
The average 2-year fixed homeowner mortgage rate also increased to 5.93%, rising from the 5.92% the previous day.
Moneyfacts also reported that there are currently 6,637 homeowner products currently available, offering a slightly wider selection than earlier in the week.
There is a feeling across the market that these mortgage rate reductions should have a positive impact on borrowers.
They have been announced following a decline in swap rates, which are foundational to the pricing of fixed-rate mortgages, over the past week.
The hope is that this will embolden other lenders to announce similar reductions, which could stimulate activity and provide a welcome boost for the market as a whole.
