Other major lenders also trim pricing this week amid growing competition
Barclays and Santander reduced mortgage rates, effective today, joining other major lenders in a broad repricing move across the market this week.
Barclays slashed rates by up to 13 basis points (bps) across its existing business range, effective today, with its purchase-only three-year fixed rate at 75% loan-to-value (LTV) falling to 4.58% from 4.68%.
Five-year fixed rates saw wider adjustments. The 60% LTV rate remained at 4.33%, while the 75% LTV rate dropped to 4.44% from 4.53%. Both carry a £899 product fee. Fee-free five-year fixed rates fell to 4.48% at 60% LTV, from 4.52%, and to 4.58% at 75% LTV, from 4.62%.
Remortgage three-year fixed rates dropped to 4.60% at 60% LTV, from 4.73%, and to 4.70% at 75% LTV, from 4.83%. Both carry a £999 fee.
Two-year tracker rates fell to 4.04% at 60% LTV, from 4.06%, and to 4.13% at 75% LTV, from 4.18%.
Santander UK also cut new business mortgage rates by up to 21bps, effective today, with its two-year fixed rate for first-time buyers at 60% LTV falling to 4.44% from 4.65%.
Higher-LTV rates also fell. The 95% LTV rate dropped to 5.29% from 5.38%, while the 98% LTV rate fell to 5.49% from 5.6%.
Santander also raised its maximum loan sizes, with borrowing now available up to £2 million across most LTV tiers and up to £1 million at 90% LTV.
Within its new-build range, two-year fixed rates at 75% LTV fell by 14bps to 4.56% with a £999 fee, or 4.81% with no fee.
Remortgage two-year fixed rates now start at 4.38% at 60% LTV, 4.48% at 75% LTV and 4.78% at 85% LTV.
In addition, the lender revised its fee structure. New two- and five-year fixed rate products now carry fees of £499 or £1,499. Its separate £1,999 and £2,999 large loan fees have been combined into a single flat £1,999 fee, applicable to loans up to £5 million.
Earlier this week, NatWest dropped rates by up to 31bps, with its largest reduction applied to its 75% LTV two-year fixed Help to Buy shared equity remortgage product, which carries no fee and £500 cashback, and now priced at 4.99%.
TSB also reduced rates across its residential, buy-to-let, product transfer and additional borrowing ranges, with two-, three- and five-year fixed rates for house purchase falling by up to 20bps, and remortgage rates sliding by up to 15bps.
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