Mortgage rates chopped further as lenders unveil further reductions

Average rates offered on home loans are continuing to edge down.

Lenders are continuing to chop mortgage rates with NatWest, Metro Bank and TSB among those making reductions (Joe Giddens/PA) (PA Archive)

Lenders are continuing to chop mortgage rates, with a string of new announcements.

According to financial information website Moneyfacts, the average two-year fixed homeowner mortgage rate on Tuesday morning was 5.62%, down from 5.66% on Monday.

The average five-year fixed homeowner mortgage rate on Tuesday morning was 5.24%, falling from 5.28% on Monday.

It wasn't that long ago that we saw lenders only dipping their toe into rate reductions, but now we are seeing some lenders dive head-first and offering larger reductions

Elliott Culley, director at Switch Mortgage Finance

HSBC UK said on Tuesday that rates have been cut on its homeowner mortgage range by up to 0.40 percentage points.

An HSBC UK spokesperson said: “We’re pleased to announce cuts to mortgage rates across our UK residential range for first-time buyers and home movers, as well as some reductions on our switcher range.”

The Mortgage Works (TMW) said that from Wednesday, its reduced rates for buy-to-let customers will include a two-year fixed-rate deal at 3.69% for people with a 35% deposit who are looking to buy a home or remortgage.

Joe Avarne, senior manager, buy-to-let mortgages at TMW said: “These changes demonstrate our continued support to landlords and the sector.”

NatWest, Metro Bank and TSB are also among the lenders to be making reductions.

Elliott Culley, director at Switch Mortgage Finance, told website Newspage: “As each day passes, mortgage lenders are becoming more confident in the stability of the current market.

“It wasn’t that long ago that we saw lenders only dipping their toe into rate reductions, but now we are seeing some lenders dive head-first and offering larger reductions.”