HSBC has announced mortgage rate cuts across their deals, with rates below four percent now available.
The rate cuts follow Halifax and Leeds Building Society slashing their deals earlier this week.
The high street bank said its new deals will be introduced from today.
They will include a two-year fixed remortgage rate of 4.49 percent and a five-year deal of 3.94 percent.
Its cheapest two-year fix will also drop from 4.93 percent to 4.49 percent, for remortgaging customers.
The deals being offered will relieve some pressure on those who were worried about high-interest rates.
An estimated 1.6 million mortgage holders are set to remortgage this year, with many bracing themselves for far higher rates than what they are currently on.
HSBC’s cheapest five-year fix will be available to eligible borrowers who are remortgaging with at least 40 per cent equity in their homes.
First Direct, a division of HSBC, is also set to announce mortgage rate cuts on Friday.
A HSBC spokesperson said: “Our new fixed mortgage rates will see significant cuts across the board which will be a welcomed move.
“Specifically, for customers wishing to remortgage, our rates will start from 3.94 percent for a five-year deal at 60 percent LTV [loan-to-value] with a £999 fee.”
Lenders have been under pressure to reduce mortgage rates, because the cost of funding these home loans has dropped.
Although the Bank of England’s benchmark interest rate has been held three times at 5.25 percent, economists expect the next move to be a cut – an expectation that has already fed through to lenders’ calculations.
