NatWest Group PLC (LSE:NWG) announced a second cut to mortgage rates in a month, this time targeting business deals, as lenders continue to grapple for customers.
Following the announcement, it was soon joined by Barclays PLC (LSE:BARC) also flagging its own cuts again after trimming mortgage lending rates twice last month.
And HSBC Holdings PLC (LSE:HSBA) then declared that it will reduce mortgage rates across the board, with rates to be published tomorrow.
For NatWest, from Tuesday it will be making cuts of 19 basis points on two-year fixed deals, taking the rate to 4.40% on a 60% loan-to-value mortgage with no product fee or 4.85% for a 80% LTV and £1,495 fee. Two-year fixed rates are also to be cut by 13 and 17 basis points for first-timers and those on help-to-buy schemes respectively.
Barclays said it is making selected rates cuts of up to 0.2%, also starting tomorrow, with its two-year fixes at a rate of 4.55% with an 85% LTV and £899 product fee, while a five-year fix is to be offered 4.05% for 75% LTV with no product fee or at 3.95% if a product fee is paid.
NatWest had cut its five-year fixed rates in mid-August, taking interest costs below the 4% mark, with the latest reductions also stretching to high-value and green mortgages.
Several other rival lenders, such as Nationwide, TSB and Virgin Money, also launched a string of mortgage rate cuts throughout the month following the Bank of England’s move to cut base interest earlier on.
"Today’s flurry of rate reductions is a very positive sign, with lenders actively pricing to encourage buyers to take the plunge," said Iain Swatton, director at Exemplar Financial Services.
"This is great news for remortgage clients coming off low rates, as it helps soften the blow. It seems the winds of optimism are starting to blow through the market."
Core lenders are likely to follow, said Craig Fish, director at Lodestone Mortgages & Protection.
Rohit Kohli, director at The Mortgage Stop, added: "The mood among lenders is clearly that these levels of rates are here to stay for a while longer and, as long as there are no shocks with inflation next week, then borrowers should act quickly.
"These ongoing cuts are quickly turning things into a sellers' market and prices could start to edge up quickly."
** Update: Adds Barclays and HSBC details, broke comments **