Three of the UK’s largest banks have cut mortgage rates again as the battle for customers in recovering housing steps up a gear.
Spanish-owned TSB has cut 0.25% (25 bps) of its two, three and five-year deals from tomorrow both for existing homeowners and first-time buyers.
Barclays PLC (LSE:BARC) knocked 0.15% (15 bps) off a two-year fixed rate deal for borrowers for only a 15% deposit, with the rate now 5.07%.
HSBC is also cutting rates on two, three and five-year fixed products with deposits from 10% - 40%, but will confirm the reductions tomorrow.
Virgin Money meanwhile has cut 0.15% (15 bps) off its buy-to-let mortgage rates.
Lenders set their mortgages by referencing City wholesale market swap rates that have been steadily falling after the Bank of England cut base rates by 0.25% earlier this month.
Economists are arguing about how many more rate cuts this year might see, with the doves seeing two more though others suggest recent healthy economic data has undermined the case for more monetary stimulus for the UK economy.