Nationwide has joined the ranks of lenders cutting mortgage rates while rival Santander has decided the recent price war has gone far enough.
The building society is cutting rates on some products by up to 0.81 percentage points, taking its cheapest mortgage rate down to 3.84% - its lowest level in eight months.
Henry Jordan, Director of Home at Nationwide Building Society, said: “As one of the largest lenders in the country, we remain as committed as ever to supporting borrowers.”
“These latest changes mean we are now offering sub-four per cent rates for the first time in eight months.”
“These reductions will ensure that we have some of the lowest rates on the market for all types of borrowers whether it be first-time buyers, home movers or those looking to remortgage or switch deal.”
Santander though is swimming against the tide in raising rates on its products by between 0.05 and 0.2 percentage points.
Mortgage brokers, however, suggested that the move was in response to a flood of applications following its aggressive cutting last week and this was just a pause to turn off the tap.
Others though suggested that after last week’s surprise rise in the rate of inflation and increased volatility in wholesale rates, this might mark the end of the recent big cuts in rates from home loans.