The Standard - HSBC and Barclays slash five-year fixed mortgage rates to below 4%
A new mortgage price war has broken out among some of Britain’s biggest lenders sending headline fixed rates back down below the psychologically important 4% mark.
Aaron Strutt, product and communications director at brokers Trinity Financial, told The Standard: “Barclays and HSBC have been pushing lenders like Nationwide and Halifax pretty hard this year. They are keen to offer the cheapest rates and issue as many mortgages as possible. NatWest launched a 3.97% five-year fix a few days ago and it has swiftly been undercut by HSBC and Barclays.
“It is good news the banks and building societies are lowering their rates again particularly as the two- and five-year fixes are looking so much better value for money. The lenders are still fighting it out for business but the cheapest deals really are limited to borrowers with the biggest deposits. When many first time buyers see that rates are improving and check again to see how much mortgage payments would potentially be, they are frustrated the monthly costs are not coming down very much.
“Lots of borrowers think rates will come down over the near term and don’t want to lock into a five-year fix. Many will be tempted by Barclays new 4.22% two-year fix especially as the split between the number of people taking two- or five year fixes is pretty even.”
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