HSBC and Gen H have set the benchmark in latest round of fixed rates cut.
The high street lender has brought its five-year fixed rate for remortgage customers below 4% with a headline rate of 3.94% for those borrowing up to 60% of the property value.
The two-year fixed rate for remortgages will dip below the 4.50% threshold for the first time since early June last year with the headline rate hitting 4.49%.
It is for those with at least 40% equity in their home. The bank said those looking to fix longer term could switch to a ten-year fixed rate starting from as little as 3.99%.
Meanwhile, Gen H has also announced further rates cut across its entire product range.
The fintech mortgage lender said 85% LTV is reduced by up to 67 basis points (bps). A two-year standard product with fee is now 5.32%, bundle for 5.27% or a standard five-year at 4.71%, bundle at 4.65% with £999 fee.
And 90% LTV is reduced between 40 bps and 55 bps. While 95% LTV is reduced by 60 bps, with all five-year rates at sub-5%. All two-year products are below 6%.
These rates are available for aspiring first-time buyers, home movers and remortgagers who come to the lender via mortgage broker.
Gen H, which was the first lender to introduce sub-4% rates in December 2023, said its greatest reductions are found across high-LTV products supporting first-time buyers.
The lender also said it is still offering its market-leading 3.94% for 60% LTV five-year homebuying bundle products; 3.99% for 60% LTV five-year standard products.
Gen H commercial director Pete Dockar said: “Today, we’re excited to show we can help people no matter their deposit size, whether they’re remortgaging in the 60% LTV band or buying their first home with a smaller deposit. We make these reductions because they make a difference to real people. That’s why we’re here.”
L&C Mortgages associate director David Hollingworth said: “These cuts are just the latest salvo in an increasingly fast-moving market. These rates are offering some of the lowest rates since the spike in rates last summer.
“These cuts follow hot on the heels of New Year improvements by Halifax and others will be bound to follow suit. We thought the New Year would start with a bang and that’s proving to be the case.”
