Following the recent surge in mortgage rates attributed to the Iran conflict, various major banks are now reducing their rates.
HSBC is planning rate cuts across its mortgage range effective Friday, with the specifics to be revealed upon implementation.
TSB is also set to decrease rates on Friday, with certain mortgages seeing a drop of up to 0.45 percentage points, though some other TSB mortgage rates will see increases.
Halifax has announced reductions in fixed rates on select mortgages for home movers and first-time buyers, with decreases of up to 0.35% from Friday onwards.
Santander made the first move among major lenders by cutting specific mortgage products by up to 0.28 percentage points on Thursday, following a decline in swap rates used for loan pricing.
The latest figures from Moneyfacts reveal that the average two-year fixed mortgage rate on Thursday morning dropped to 5.88% from the previous day’s 5.89%, while the average five-year fixed rate remained steady at 5.77%.
Concerns over potential inflation spikes due to the Iran conflict have led to the recent mortgage rate hikes, with expectations of prolonged high interest rates by the Bank of England.
Moneyfacts reported 6,665 homeowner mortgage products available on Thursday and suggests that rates may have stabilized at this point.
Adam French, head of consumer finance at Moneyfacts, noted that average mortgage rates have held firm post-Easter, indicating a pause in rate increases for now.
Despite recent rate cuts from various lenders like Santander, ongoing uncertainties in the Middle East and the potential impact of geopolitical factors still pose risks for borrowers seeking cheaper borrowing options.
