The Bank of England’s decision to hold the base rate at 5.25% has led to a flurry of mortgage rate cuts this week.
Following the announcement the central bank had voted against raising interest rates again, several big lenders announced a range of new deals and improved rates.
Halifax was the first to announce new prices, including a two-year fixed rate mortgage which is now at 5.14% with a £999 fee for those who need to borrow up to 60% of the property’s value.
Virgin Money then revealed it had made price cuts and unveiled a two-year fixed rate deal for those purchasing a home. This has a rate of 5.05% and a £1,295 fee for those borrowing at 65% loan-to-value (LTV).
TSB cut selected rates for landlords by 0.3% and then HSBC revealed this morning it had slashed prices on a number of its mortgages by 0.2% on average.
It has also re-introduced its no fee three-year fix for 95% LTV borrowers. This deal comes with a cashback incentive of £350.
An HSBC UK spokesperson said: “We are here to support our customers and we remain committed to offering the best possible rates to all our customers.”
But, it’s not just the bigger lenders who are getting competitive. Melton Building Society has unveiled a new range of mortgages, the highlights of which include cuts to fixed rates of 0.26% and the relaunch of a two-year discounted product for those who need 75% LTV deals.
It has also launched a new shared ownership fixed rate to January 2026, and reduced the rate of the existing shared ownership fixed rate to January 2029 by 0.86%.
Justin Moy, managing director at Chelmsford-based EHF Mortgages said: “This looks to be the start of the next wave of rate cutting by lenders, buoyed by the recent hold to the base rate and falling swap rates.
“Increasing competition will only benefit borrowers, so any saving is really appreciated.”
How do these new deals match up to average prices?
The average two-year fixed residential mortgage rate today (Wednesday 8 November) is 6.24%, according to Moneyfacts.co.uk. This is down from an average rate of 6.26% yesterday and 6.29% this time last week.
Meanwhile, the average five-year fixed residential mortgage rate today is 5.83% which compares to 5.86% on Wednesday last week.
