Lenders are slashing mortgage rates despite the Bank of England raising the Bank Rate last week.

HSBC has become the first to offer a five-year fixed-rate deal below 4 pc since early October, as of yesterday. 

The bank has cut its rate for those remortgaging with a 40 per cent stake by 0.3 percentage points down to 3.99 per cent with a £999 fee. 

HSBC  has cut its rate for those remortgaging a five-year fixed-rate deal with a 40% stake by 0.3 percentage points down to 3.99% with a £999 fee

 HSBC  has cut its rate for those remortgaging a five-year fixed-rate deal with a 40% stake by 0.3 percentage points down to 3.99% with a £999 fee

Last week, Lloyds and Virgin Money both lowered their ten-year rates to 3.99 per cent.

HSBC’s new deal marks the first five-year offer below the 4 per cent mark since the mini-Budget in September sent rates soaring. 

The last five-year fixed deal below this was axed in early October as rates rose sharply before peaking in mid‑November. 

Nationwide is also offering reductions of up to 0.75 percentage points on its ten-year fixed deals. For those remortgaging with a 15 per cent stake there’s a five-year fixed rate of 4.49 per cent.

First-time buyers with just a 5 per cent deposit can bag a five-year fixed rate of 5.59 per cent.

The average five-year fixed rate is currently 5.14 per cent, while two-year deals sit at 5.42 per cent, according to Moneyfacts.

The Bank of England hiked base rate last week by 0.5 percentage points to a 14-year high of 4 per cent. 

But forecasts predict inflation has peaked, with the Bank indicating this may be its last consecutive increase.

[email protected]

This post first appeared on Dailymail.co.uk

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Struggling households told not to turn off common kitchen appliance to save money

HARD-UP households have been warned not to switch off a particular kitchen…

BUSINESSS LIVE: HL assets slide 9%; WPP boosts profit expectations

The FTSE 100 will open at 8am. Among UK companies with reports…

Britishvolt’s rescue a ‘wasted opportunity’:, say industry experts

Britishvolt’s rescue has been described as a ‘wasted opportunity’ after it emerged…

Beware perils of the UK takeover boom: Merger mania can hit investors

At first sight, BT, ContourGlobal, Countryside Properties, FirstGroup, Homeserve, Shaftesbury and Ted…