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
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.
