It’s been another busy week so far for lenders cutting rates to woo customers. 

From today HSBC has made changes to its residential and buy-to-let (BTL) mortgage products.

A new two- and five-year fixed Buy To Let product is now available at 80% LTV across its purchase, remortgage and existing customer range, which is for A, B and C energy performance certificate rated properties only.

For existing residential customers switching, rate on two-year fixed fee saver products at 60% LTV and above will be lowered, while the five-year fixed premier exclusive at 60%, 80%, 85% and 90% LTV will also be reduced.

For residential first-time buyer and home mover products, two-year fixed standard rates at 60%, 70%, 75%, 80%, 85% and 90% LTV will be cut, while the five-year high value mortgages product will be cut across 70% and 75% LTV.

Products in the residential remortgage cashback range have also been reduced. Rates on the two-year fixed standard across 60%, 70%, 75%, 80%, 85% and 90% LTV will all be trimmed.

International residential two- and five-year fixed fee saver rates will also be lowered at 70% and 75% LTV while five-year premier exclusive rates at 70% and 75% LTV will go down.

Aldermore has cut a wide range of rates across its residential owner occupier range, with a focus on higher LTV mortgages. Rates are being cut all the way up to 95% LTV for those with lower deposits, such as first time buyers.

For new customers from the residential owner sector, two-year fixed rates, up to 95% LTV are reduced by up to 0.60% (rates from 6.54%, includes zero and £999 fee options.

Three year fixed rates, up to 95% LTV reduced by up to 0.35% (rates from 6.59%, includes zero and £999 fee options. And for five year fixed rates, up to 95% LTV reduced by up to 0.70% (rates from 5.99%, includes zero, £999 and £1,999 fee options)

Meanwhile for existing customers above 80% LTV, fixed rates reduced by up to 0.60% (rates from 6.19%).

Jon Cooper, director of mortgages at Aldermore, comments:“We’re keen to stay fresh and offer competitive rates that stand out. We’re especially focused on supporting first time buyers and those with lower deposits, making home ownership more accessible. With these changes and expert guidance from a broker, stepping onto the property ladder becomes more achievable.”

Looking at the market as a whole, average mortgage rates have dropped to their lowest levels since before the Budget in October.

Data from Moneyfacts shows average mortgage rates on the overall two- and five-year fixed rates fell by 0.13% and 0.10% at the start of March to 5.39% and 5.22% respectively. The drops to the two- and five-year average rates month-on-month were the biggest cuts since the start of October.

As of early March 2024, the average five-year fixed rate was 5.34% and is now – one year later – at 5.22%. The average two-year fixed rate has dropped from 5.76% to 5.39% over the same period.

However, the average shelf-life of a mortgage product fell to 16 days, from 36 days a month ago.