Barclays PLC (LSE:BARC) and Banco Santander (LSE:BNC) are the latest major lenders to slash mortgage rates.
Today, Barclays is expected to cut rates by up to 0.5 percentage points on products targeting homebuyers, including new two-year fixed-rate deals.
Barclays’ cheapest two-year fixed rate, which is only available to buyers with a deposit of at least 40%, will be cut from 4.62% to 4.17%.
It is also dropping its two-year fixed rate to 4.2% for buyers with a 25% deposit, while customers with a small deposit could get rates of 5.5%.
The average two-year fixed rate for buyers with at least a 40% deposit is currently 5.41%, Moneyfacts data indicates.
Santander will meanwhile join a cohort of lenders offering rates of less than 4%, with its cheapest five-year fixed rate mortgage at 3.89% aimed at customers looking to remortgage.
The Co-operative Bank is offering two-year fixed mortgages to those buying with a small deposit at 4.99%, including £749 of extra fees.