HSBC, Halifax, TSB and Santander set to cut mortgage rates on Friday in ‘encouraging’ move

These adjustments come as swap rates, which play a central role in how lenders price mortgage products, have fallen back from recent highs, easing cost pressures across the sector.

Data from Moneyfacts suggests average mortgage rates are beginning to stabilise after a period marked by sharp fluctuations and uncertainty.

HSBC UK confirmed its reductions will apply across a broad range of products, including deals for first-time buyers, home movers and those seeking to remortgage.

Santander introduced some of its cuts on Thursday, while other lenders are expected to implement changes in the coming days as market conditions improve.

TSB is offering some of the most significant reductions, with two-year fixed house purchase rates dropping by up to 0.45 percentage points.

At the same time, the lender is increasing selected rates elsewhere, including product transfer deals and additional borrowing, reflecting a mixed approach to pricing.

Halifax Intermediaries has announced cuts of up to 0.35 percentage points across its fixed-rate range, with its sister brand BM Solutions also lowering rates.

Amanda Bryden, head of Halifax Intermediaries and Scottish Widows Bank, said: "Swap rates, which play a significant role in the price of mortgages, continue to be volatile, but while they are falling, we are taking the opportunity to pass that on to home buyers."

Santander said it is reducing borrowing costs in response to declining swap rates, which underpin the pricing of its mortgage products.

Figures published on Thursday showed the average two-year fixed homeowner mortgage rate at 5.88 per cent, slightly down from 5.89 per cent the previous day.

Despite the recent easing, these figures remain higher than earlier in the year, when two-year deals averaged 4.83 per cent and five-year products stood at 4.95 per cent in early March.

Adam French, head of consumer finance at Moneyfacts, said: "Rising mortgage rates seem to have plateaued for now."

He added that swap rates have fallen back towards 4 per cent from highs of around 4.4 per cent, creating scope for lenders to adjust pricing.

Mr French said: "Ongoing uncertainty in the Middle East and the looming threat of 'Trumpflation' mean the path to cheaper borrowing remains fragile."

Nicholas Mendes, mortgage technical manager at John Charcol, said: "When a lender of that size starts repricing, it does tend to give the wider market a nudge and adds to the sense that this could help kick-start further reductions from other big names over the coming days."

He described the shift as "especially encouraging after the volatility of the last few weeks, where lenders were far more focused on protecting margins and managing risk than competing hard on price."

Mr Mendes said HSBC’s move is notable because it covers first-time buyer, home mover, remortgage and buy-to-let products rather than targeting a single segment.

"Anyone buying, remortgaging or coming off a fixed rate in the next three to six months should be using this window to get prepared now."