Mortgage rates across the UK declined once again this week as Barclays PLC (LSE:BARC) and Banco Santander (LSE:BNC) were among those to cut.
According to Moneyfacts, typical interest on a two-year fixed-rate mortgage declined from 5.4894% to 5.4685% between Monday and Friday.
Average rates fell every day of the week consecutively, meaning mortgage costs had fallen for a third week in a row.
Santander on Thursday detailed plans to reduce rates across more than 70 of its mortgage products by up to 0.23%.
This took the rate on its two-year fixed 85% loan-to-value mortgage down to 4.69%.
“It’s good to see a prominent lender making the decision to cut fixed mortgages,” Moneyfacts finance expert Rachel Springall commented.
Barclays had also signalled cuts on Tuesday, alongside TSB Banking Group (LSE:TSB), as lenders continued to reverse on hikes made since early October.
Nick Mendes, of mortgage broker John Charcol, noted the moves marked positive news but that a price war hadn’t emerged “just yet”.
“We haven’t seen all high-street lenders make reductions in quick succession,” he pointed out.
“It will be good to see if more prominent lenders decide to cut their fixed-rate mortgages in the weeks ahead in response,” Springall added.