Competition among lenders is hotting up with mortgage rates falling despite the Bank of England raising the base rate last week.
Virgin Money has become the latest lender to launch a sub-4% five-year fixed remortgage deal, at 3.95%, undercutting HSBC which brought out a 3.99% deal on Tuesday.
In addition, Virgin is offering a five-year fixed deal at 3.99% for house purchases.
Nationwide has also cut rates by up to 0.75% on its ten-year fixed deals. For those remortgaging with a 15% stake there’s a five-year fixed rate of 4.49%.
First-time buyers with just a 5% deposit can secure a five-year fixed rate of 5.59%.
The average five-year fixed rate is currently 5.14%, while two-year deals sit at 5.42%, according to Moneyfacts.
Ashley Thomas, director at mortgage broker Magni Finance, commented: “Rates are coming down rapidly, and I wouldn’t be surprised to see them at 3.5% or lower in the coming weeks. It is a welcome change in light of the large increases we saw during the closing stages of 2022.”
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