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Mortgage rate war hots up

Christina Hoghton
Written By:
Posted:
24/06/2016
Updated:
24/06/2016

Lenders are slashing mortgage rates left, right and centre

A mortgage rate war has begun this week, with a swathe of lenders launching new cheaper deals or chopping existing rates.

It started earlier this week with HSBC launcing the lowest two-year fixed rate ever at 0.99%, and others have followed suit.

Low-deposit record breaker

Yorkshire Building Society announced yesterday it has launched the lowest fixed-rate mortgage available to buyers with just a 10% deposit.

The all-time low 90% loan-to-value mortgage is available at a rate of 1.98% with a £1,345 product fee and is only accessible directly through the lender, not via mortgage brokers.

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The mutual has also launched a five-year fixed rate at 2.93% with a £1,345 product fee, up to 90% loan to value.

Skipton snips rates

Skipton Building Society also reduced rates yesterday, across selected two and five-year fixed rate mortgages.

Rates have been chopped by up to 2% and all applicable products will include a free valuation.

The range includes a two-year fix at 1.79% to 80% loan to value (LTV) with £995 fee for house purchases and a two-year fix at 1.49% to 60% LTV for remortgages.

The five-year fixed range now includes rates at 2.45% to 70% of the property’s value with £995 fee for purchases and 2.12% to 60% loan to value for remortgages with a £1,995 fee.

Kris Brewster, Skipton’s head of products, said: “We believe our two and five-year products offer very attractive rates and will help first-time buyers and those looking to move up the housing ladder to realise their dream of moving into a new property.”

Buy-to-let rate cuts

Buy-to-let specialist The Mortgage Works (TMW) has reduced rates on its two, three and five-year mortgage products for landlords.

Selected two-year fixed term buy-to-let products at 65% loan-to-value (LTV) will be reduced by up to 0.20%, and products at 75% LTV will be cut by up to 0.70%.

The five-year fixed rate products at 65% and 75% LTV are being reduced by up to 0.65% and start at 2.84% and 3.24% respectively, while the three-year fixed rate products at 65% LTV are being reduced by 0.30%, with rates starting at 2.39%. Let-to-buy rates are being reduced by up to 0.75%.