Virgin Money UK PLC (LSE:VMUK) announced cuts to mortgage rates across its residential, remortgage and buy-to-let lending options.
Changes to rates will include a cut of 0.2% (20 basis points) for two-year and five-year fixed-rate mortgages with 85% loan to value, to 4.74% or 4.34% respectively, with an up-front fee.
Without the fee, the same mortgage rates are being cut 0.14% for the two-year or 0.15% for the five-year to 5.05% and 4.54%.
Last week, Virgin cut 15 basis points off its buy-to-let mortgage rates, while rivals Barclays, TSB and HSBC cut their residential mortgage rates, some of them for the second time this summer.
Lenders set their mortgages by referencing City wholesale market swap rates, which have been steadily falling even before the Bank of England cut base rates by 0.25% at the start of August.
One-year swap rates are just below 4.5%, with two-year rates at roughly 4.1% and five-year at 3.7%.
Virgin Money's announcement today was described as a "slashing" of rates by Gabriel McKeown, head of macroeconomics at Sad Rabbit Investments, adding that it would "come as a breath of fresh air in a market suffocating under high rates".
But he said "caution remains, as the future trajectory of inflation remains uncertain, and any unexpected rise could quickly alter the landscape".