A growing number of lenders are cutting mortgage rates in what many described as “great news” for consumers looking to get on the property ladder or refinance their current deal.

The list includes HSBC, TSB, Halifax, and several smaller specialist lenders.

HSBC announced on Thursday (4 Jan) that it has cut rate on its residential mortgage range by up to 1.00% with several rates below 4.00% for the first time since last April.

The bank added that the largest cut is 1.00% on 10 year Fixed Rates at 60% LTV (now 3.99%) and 80% LTV (now) 4.34%.

“Our latest changes mean that we are able to offer our existing customers 5-year and 10-year fixed term mortgages that are below 4% for the first time since April 2023 alongside our lowest rate of 3.89% for existing customers. We now also have over 150 mortgage options under 5.00% for customers, the most we have offered under this level since April 2023,” said an HSBC UK spokesperson.

TSB has also revised rates for a range of mortgage products with a two-year term.

The bank’s two-year first-time buyer mortgages reduced by up to 0.55% with rates starting at 4.54% for a 0-60% LTV mortgage with a £995 fee.

Its two-year home mover mortgages reduced by up to 0.55% with rates starting at 4.54% for a 0-60% LTV mortgage with a £995 fee.

While TSB’s two-year remortgages reduced by up to 0.40% with rates starting at 4.44% for a 0-60% LTV mortgage with a £995 fee and free legals.

Specialist lenders Keystone Property Finance and MPowered Mortgages have reduced rates by 0.65% and 0.25% respectively.

Keystone’s largest reductions come in its ex-pat range which now starts at 5.49%.

The lender has also reduced the rates on its standard and specialist products offered on HMOs and MUFBs up to 15 occupants/units by up to 0.55%.

As well as lowering its rates, Keystone has removed the 5.5% and 7% arrangement fee products on its five-year fixed rates.

These deals were introduced to allow landlords to achieve higher levels of affordability when mortgage rates were high but with the recent rate reductions seen in the market these are currently not needed.

The lender has introduced a 3% arrangement fee offering to its product transfer range, with rates starting at 4.89%, providing greater flexibility of product choice for those coming to the end of their fixed term.

MPowered Mortgages has reduced rates on its two and five-year fixed-rate product ranges and has introduced cashback across its entire range.

MPowered Mortgages sales director Matt Surridge said: “We appreciate that it is a very tough market out there, and that is why we are delighted to be able to extend our cashback to our entire range to help with moving and remortgaging costs. We have listened to what our borrowers want, and whilst headline rates are very important, many of our customers also asked for upfront assistance. A £500 or £1,000 cashback helps with immediate costs, and on a 2-year fixed rate for a loan of £200,000, £500 is the equivalent of an additional 10+ bps of rate reduction.”