Nationally, HSBC and Santander have lowered mortgage rates AGAIN

Three more major mortgage lenders have slashed their interest rates, giving mortgage borrowers even more respite, while brokers warn against waiting for interest rates to fall further.

HSBC and Nationwide are the latest major lenders to announce further rate cuts, both of which take effect from today.

This follows Santander’s announcement of rate cuts yesterday, meaning it is now offering the cheapest five-year fixed rate on the market at 5.2 percent.

HSBC is lowering interest rates on its two- to 10-year fixed rates for both residential and buy-to-let mortgages, while Nationwide is cutting certain fixed-rate agreements by up to 0.40 percentage point.

Mortgage rates have been on a downward trajectory in recent weeks, with markets lowering expectations of where the Bank of England’s key interest rate will peak.

All six of Britain’s largest lenders have recently cut rates, including NatWest, Lloyds Banking Group and Barclays. Nationwide and HSBC also cut rates earlier this month.

According to Moneyfacts, the average two-year fix is ​​now 6.75 percent, down from a peak of 6.86 percent, and the average five-year fix is ​​6.23 percent, down from a peak of 6 .37 percent.

However, brokers advise mortgagees that interest rates should not continue to fall.

Chis Sykes, director of technology and senior mortgage broker at Private Finance, says: ‘We advise clients not to take a wait and see approach when it comes to securing this reduced mortgage rate,’ he says.

While there is a prevailing sense of excitement about the prospect of an interest rate war or a substantial fall in mortgage rates in the coming months, market conditions are largely inconsistent with such predictions.

“Individuals can always lock in a mortgage rate today and then reassess the situation if interest rates fall further.”

Don’t gamble on a further drop in rates: Chris Sykes, a senior mortgage advisor, says he advises clients against taking a wait-and-see attitude when it comes to falling interest rates

What are the new offers?

Nationwide Building Society has lowered rates on its fixed mortgage products by up to 0.40 percentage point starting today.

New customers who are currently moving and choose Nationwide can now get a five-year fixed rate of 5.39 percent, with no fees, as long as they have a down payment of at least 40 percent.

This would mean that someone using Nationwide’s deal to buy a house for £400,000 with a £200,000 mortgage will pay £1,215 each month if they pay back the mortgage over 25 years.

The cheapest five-year solution for starters is 5.44 percent without costs, and 5.49 percent for those who switch.

In terms of two-year flat rates, Nationwide’s cheapest deal available to movers and first-time buyers is now 5.94 percent.

HSBC has cut interest rates by between 0.03 percentage point and 0.3 percentage point, in addition to rate cuts within the buy-to-let range of up to 0.19 percent.

HSBC’s cheapest five-year solution is for customers who refinance their mortgages and have at least 40 percent equity in their home, with a 5.44 percent charge.

Those who buy with a 10 percent down payment can now get a five-year fix, charging 5.97 percent, at no cost. New buyers will also benefit from £500 cashback.

Meanwhile, Santander lowered select residential mortgages, remortgages and buy-to-let rates by up to 0.2 percentage point yesterday.

It also launched a new range of new products with rates starting at 5.41 per cent plus £500 in cashback.

The cheapest deal right now is a five-year fix at 5.2 percent, aimed at movers with a minimum 25 percent down payment. Coincidentally, this is the cheapest five-year fixed rate on the market today.

A buyer using this to secure a £200,000 mortgage will pay £1,193 a month if he pays off over 25 years.

Sykes says people can still take out a mortgage offer today and then reassess the situation if interest rates fall further

The two-year solutions remain much more expensive than the five-year deals. The cheapest rate is 5.81 per cent, but it comes with a fee of £999.

Henry Jordan, housing director at Nationwide Building Society, said: “As economic conditions continue to stabilize, we are in a position to further reduce our mortgage rates, building on the reductions we have made in recent weeks.”

Graham Sellar, head of business development mortgages at Santander, said: ‘We are pleased to help borrowers access cheaper loans with further reductions in our fixed mortgage rates.

‘Santander also continues to support first-time buyers by providing £500 cashback to help with the cost of buying their first home.’