“This is happening because they are all trying to entice prime clients,” said Dominik Lipnicki, director of Your Mortgage Decisions.
He added: “They know that once these clients sign off, they will stay with the same lender. For this reason, they have to fight each other, offering the most competitive rates to get the same client.”
Alex Smith, mortgage adviser At Capricorn Financial Consultancy, said that January is traditionally a busy time for both purchases and mortgages.
“These are all big lenders, so generally all prime clients opt for them. Overall, all these lenders are looking for catching the same business, that is five-year fixed rates at 60% LTV, as it is more competitive with lower risks,” he concluded.
HSBC has cut the rates on its fixed and tracker mortgages across its full range of LTV deals.
Changes include a 0.1% cut to the bank’s 95% LTV two-year fixed rate to 2.99% from 3.09%.
Other highlights include a 0.1% cut to the bank’s 90% LTV five-year fix to 2.29%, a 0.06% cut to its 90% LTV two-year fix to 2.09%, and a 0.06% cut to its 60% three-year fix to 1.99%.
All 95% LTV mortgages have been reduced by up to 0.10%, with select two and five year fixed rate mortgages at 60% and 90% LTV reduced by up to 0.10%.
Changes include two- and five-year fixed rate at 95% LTV at 3.19% and 3.54% respectively, with no fee.
The full range of 95% LTV mortgages come with £500 cashback and a free standard valuation for purchases.
Select two and five-year fixed rate mortgages at 60% and 90% LTV have been reduced by up to 0.10%.
Changes include two- and five-year fixed rates at 90% LTV at 2.14% and 2.49% respectively, with no fee.
All come with £250 cashback and a free standard valuation for purchase and remortgage.
This reduction is focused on keeping the higher LTV mortgage options as competitive as possible, in line with the commitments that Platform made at the start of 2018 to support first-time buyers with good value deals, the lender said.
Paul Norcott, head of mortgages and insurance at The Co-operative Bank (pictured), said that this will continue to benefit first-time buyers who often struggle to raise the deposit needed to purchase their first home.
He added: “We introduced new product ranges in 2018 which were in support of first time buyers and this year we want to continue to offer good deals to our broker partners who are working with clients who want to take their first step on to the property ladder.”