Santander, HSBC UK and Barclays cut mortgage rates again

Banks including Santander, HSBC UK, Barclays, Skipton Building Society, and Virgin Money all adjusted their mortgage offerings, highlighting growing competition across the market.

According to financial information website Moneyfacts, the average two-year fixed homeowner mortgage rate on the market last Wednesday (April 22) morning was 5.83%, down from 5.87% on Tuesday (April 21).

Santander led with another round of cuts

Santander has reduced rates for the second time in April, introducing further cuts of up to 0.25 percentage points from Friday (April 24) . The changes applied to first-time buyers, home movers, and those remortgaging.

Among the headline deals:

• A 98% loan-to-value “My First Mortgage” fell to 5.60%
• A 5% deposit, three-year fixed deal was launched at 5.55% with no fee and £250 cashback
• A 15% deposit, two-year fix was offered at 4.80% (£999 fee + £250 cashback)
• A 15% deposit, five-year fix came in at 4.98% with no fee and £250 cashback

HSBC UK also refreshed its mortgage range after cutting rates the previous week, with reductions across products for buyers and remortgagers.

Barclays and Skipton Building Society had already lowered their rates earlier in the week, while Virgin Money introduced cuts across residential and buy-to-let deals.

Why have rates moved?

Mortgage pricing, which is influenced by swap rates, had begun to ease – allowing lenders to pass on some reductions.

At the same time, global uncertainty, including tensions in the Middle East, continued to create volatility and kept expectations of higher interest rates in place, limiting how far rates could fall.

Recommended reading:

According to Moneyfacts at the time:

• The average two-year fixed mortgage rate was 5.83%
• The average five-year fixed rate was 5.73%

Both were slightly lower day-on-day, but still well above early March levels, when two-year fixes averaged 4.83% and five-year deals 4.95%.

Are you switching your mortgage deal soon? What’s the best deal you’ve found? Tell us in the comments below…