Mortgage lenders have started offering mortgage rates under 4%, in signs that surging competition is pushing prices down.
Barclays’ green 5-year fixed rate mortgage is now priced at 3.99% with an £899 product fee to 60% loan-to-value.
Meanwhile Santander is offering 60% LTV 2 and 5-year fixed rates at 3.99% with a £1,999 fee.
Buy-to-let
In terms of mortgages for landlords, at 65% LTV Santander is offering a 2-year fixed rate at 4.35% with a £1,749 fee or 4.89% with no fee, while the five-year fixed rate is priced at 4.32% with a £1,749 fee or 4.59% with no fee.
Buy-to-let remortgage rates are lower, at 4.25% with a £1,749 fee or 4.52% with no fee.
David Morris, head of homes at Santander UK, said: “We’re delighted to launch a range of new products, along with rate cuts on our existing range, that will make a difference to customers across every stage of the home-buying journey.”
Bank base rate cut
Last week the Bank of England cut the base rate from 4.75% to 4.5%, while some members of the Monetary Policy Committee voted for a steeper cut – indicating that more are on the horizon.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: “It was only a matter of time for lenders to bring back sub 4% mortgages as a result of swap rates falling in recent weeks, coupled with a cut to bank base rate.
“This is a positive injection to the mortgage market and when a big lender makes such a move, it can prompt its peers to follow suit with cuts of their own.”
