Lowest fixed rate mortgages dip below 4.65% as two more high street banks lower home loan prices

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Two more mortgage lenders have announced they are slashing rates across their home loan deals.

Both HSBC and Halifax have cut rates following hot on the heels Santander and TSB, which both yesterday made similar moves.

Halifax has lowered rates by up to 0.35 percentage points on fixed rate deals aimed at home movers and first-time buyers. 

Thanks to the changes it means the high street lender is now offering the lowest two-year fix on the market at 4.64 per cent, with a £1,099 fee. This is for those with a 40 per cent deposit or more.

Someone buying a property with a £200,000 mortgage on a 25 year repayment term could therefore expect to pay £1,128 a month.

Halifax is also now offering the lowest two-year fixed rate for someone buying with a 25 per cent deposit at 4.75 per cent, again with a £1,099 fee attached.

Boost for buyers: Halifax is lowering rates by up to 0.35 percentage points on fixed rate deals aimed at home movers and first-time buyer

HSBC rate changes has cut residential and buy-to-let mortgage rates. However, these appear to be less drastic than Halifax.

Its two-year fixes start from 4.77 per cent and its five-year fix starts from 4.87 per cent for those with the biggest deposits of 40 per cent or more.

The latest repricing comes at a time when most banks are charging between 4.75 and 5 per cent for their two-year fixes. Only six weeks ago, those same lenders were charging between 3.5 and 3.75 per cent.

Aaron Strutt of broker Trinity Financial said: 'The big lenders really are lowering their rates now and the price cuts are getting more momentum. 

'With HSBC, Santander, and now Halifax making some pretty chunky rate cuts NatWest and Nationwide may well follow soon. 

'Santander is giving Nationwide a bit more competition with its latest rate changes and it now has two-year fixes from 4.7 per cent, three-year fixes from 4.78 per cent and five-year rates from 4.76 per cent. 

'These rate changes will come as a relief for many borrowers keen to get on the property ladder soon.'

Craig Fish, director at London-based Lodestone Mortgages, is also hoping that other big lenders will follow suit.

'Halifax joining HSBC and Santander in cutting rates is genuinely positive news, and yes, this does feel like the start of a broader repricing as lenders compete for business in a quieter market,' said Fish.

'But let's keep things in perspective. Rates are still over 1 per cent higher than before the Middle East conflict began, so whilst the direction of travel is welcome, we are a long way from where we were.

Fish is advising his clients not to wait for rates to fall back to where they think they should be as that may not happen anytime soon.

He added: 'If you're a first-time buyer or home mover, this window of competition between lenders is your opportunity. 

'Speak to a broker, understand your options and act while the market is working in your favour.'