Boost for borrowers as Santander, HSBC and Barclays slash mortgage rates

Three of Britain’s biggest mortgage providers have cut some fixed interest rates in a welcome boost for borrowers.

Santander, HSBC and Barclays announced rate cuts yesterday in a wave that could prompt other lenders to cut rates in coming weeks.

HSBC has cut rates on its two-, three- and five-year deals for borrowers with a deposit of less than 10 percent, but has increased rates for those who own a larger share of their home.

Barclays has also cut a handful of its purchase and remortgage rates by up to 0.25 percentage points.

For example, the two-year fixed rate deal with a £999 fee for borrowers who own more than 25 per cent of their home fell from 4.9 per cent to 4.7 per cent.

And Santander will cut some of its fixed rate and buy-to-let deals by up to 0.21 percentage points from tomorrow.

The Bank of England kept its base rate at 5.25 percent for the fifth time in a row last week, after Governor Andrew Bailey confirmed that “things are moving in the right direction” towards a rate cut.

Elliott Culley, of Switch Mortgage Finance, said: ‘Barclays’ rate cuts should be the start of rate cuts across the big six. Further rate cuts are likely.”

a.cooke@dailymail.co.uk