Mortgage rates tumble as lenders compete

Major lenders are aggressively reducing mortgage rates, with average two-year fixed rates now below 5.5% for the first time since June last year, according to Moneyfacts. The average rate has dropped to 5.49%, while five-year fixed rates have fallen to 5.15%. HSBC, TSB, and Nationwide are among the lenders making significant cuts, with HSBC's cheapest five-year rate now at 3.82%. “We're frequently reviewing our mortgage rates and aim to ensure we offer competitive value to our customers.” said Oli O'Donoghue, head of mortgages at HSBC. The competition is driven by lower City swap rates and a subdued property market, prompting lenders to attract more business. Aaron Strutt from Trinity Financial noted: "This is a pretty decent time to be applying for a mortgage given the scale of rate cuts we are seeing at the moment." Smaller lenders are also joining the trend, further intensifying the competitive landscape.

BBC News (14/09/2024)   Evening Standard (13/09/2024)