Mortgage lenders slash rates under 5% - with banks including Halifax, First Direct, HSBC cutting rates

Homeowners and borrowers have been given good news after five mortgage lenders announced that they have slashed their rates below 5%.

Halifax, First Direct and HSBC UK are among the banks to slash their mortgage rates in a bid to bring competition to the market. From Tuesday 16 November, First Direct said that its mortgage rates have been cut by 0.40 percentage points, while Halifax's have been cut by 0.46 percentage points from Wednesday 15 November.

HSBA UK have cut their mortgage rates by around 0.35 percentage points. An HSBC UK spokesperson said: “We are here to support our customers and we remain committed to offering the best possible rates to all our customers. That is why we are pleased to announce cuts to mortgage rates across all our UK residential and international mortgage ranges, and across our Buy to Let range, for new and existing customers. These changes mean there are now over 20 mortgage options under 5.00% for customers, the most we have offered under this level for 5 months."

Liam O’Hara, head of mortgages at First Direct, said: “After today’s rate reductions, several of our mortgage products are now priced under 5%. Our switcher rates have also been significantly reduced to ensure existing customers have competitive options when looking to re-mortgage. We’re also committed to increasing product availability for those looking to get on the ladder with a smaller deposit, which is why we’re also launching new products in the 95% LTV (loan-to-value) space today.”

Lewis Shaw, director at Mansfield-based independent mortgage broker, Shaw Financial Services, told website Newspage: “Halifax stepping into the fray once again and dropping rates close to the 4.5% mark will certainly put the cat amongst the pigeons. Hopefully, this adds some momentum to the market and will trigger other lenders to sharpen their pencils or risk losing out.”