Santander and Barclays are among the high street lenders cutting interest rates on mortgage products this week.
Rates have increased over the past year-and-a-half in response to the Bank of England’s changes to the base rate.
The central bank has held interest rates at 5.25 per cent which have remained at this level for the last three months as inflation has eased.
Banks and building societies have been slashing mortgage rates recently, including Santander and Barclays, which were included in Moneyfacts “Pick of the Week”.
High street lenders are slashing rates to stay competitive on the property market
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Santander cut the rates of several buy-to-let products this week, including its two-year fixed rate deal which offers 4.64 per cent.
Remortgage customers are able to choose between free legal fees or £250 cashback with a free valuation incentive being included.
There is a product fee of £1,749 attached to this deal can be added to the mortgage advance which is deal for those looking to save on any upfront costs.
In comparison, Barclays Mortgage has reduced its two-year fixed rate mortgage at 60 per cent loan-to-value (LTV) which is now priced at 4.36 per cent.
There is no product fee attached to this product and a free valuation of the home is included with the deal allowing overpayments.
Both mortgage products have been awarded an “outstanding rating” by the team at Moneyfactscompare.
Rachel Springall, a finance expert at Moneyfacts, said rates could come down further in the weeks ahead, meaning those looking to remortgage or get on the property ladder may want to wait a bit longer before shopping around for the best deal.
She said: “The consecutive reductions to the overall average two- and five-year fixed mortgage rates will be of great relief for borrowers looking to refinance this year.
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The Bank of England base rate is currently at a 15-year high GB NEWS“The volatility surrounding mortgage rate pricing eased, as the average mortgage shelf life rose from 17 days to 21 days, the highest figure recorded in over six months.
“There are big expectations for fixed mortgage rates to fall in the coming weeks, so some borrowers may choose to wait patiently for the right time to change their deal or buy their first home.”
Despite this trend of mortgage rate cuts, the base rate is not expected to come down until the later half of 2024.
Bank of England Governor Andrew Bailey said he hoped the “big change” to mortgage interest rates will continue to fall throughout the year when appearing before the Treasury committee earlier this week.