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Lenders are cutting mortgage rates despite the latest Bank of England base rate hike
Lenders are cutting mortgage rates despite the Bank of England raising bank rates last week.
HSBC has become the first since early October, yesterday, to sign a five-year fixed-rate contract below 4 percent. offers.
The bank has reduced the rate for those re-mortgaging with a 40 per cent stake by 0.3 percentage point to 3.99 per cent with a fee of £999.
HSBC has reduced the rate for those who re-negotiate a five-year fixed-rate contract with a 40% stake by 0.3 percentage point to 3.99% with a fee of £999
Last week, Lloyds and Virgin Money both cut their ten-year rates to 3.99 percent.
HSBC’s new deal is the first five-year offer below the 4 percent mark since the mini budget sent interest rates higher in September.
The last five-year fixed deal below it was scrapped in early October as interest rates rose sharply before peaking in mid-November.
Nationwide also offers discounts of up to 0.75 percentage points on its ten-year fixed deals. For those who re-mortgage with a 15 percent interest, there is a five-year fixed interest rate of 4.49 percent.
New buyers with just a 5 percent down payment can bag a five-year flat rate of 5.59 percent.
The average five-year fixed rate is currently 5.14 percent, while two-year deals are at 5.42 percent, according to Moneyfacts.
The Bank of England raised key interest rates by 0.5 percentage point last week to a 14-year high of 4 percent.
But forecasts predict inflation has peaked, with the Bank signaling that this could be the last consecutive rise.
l.purkess@dailymail.co.uk