Rate war accelerates as HSBC launches 3.92% mortgage rate

HSBC has announced a new round of rate reductions, introducing a five-year fixed rate at 3.92%.

The rate is currently the lowest on the market and follows NatWest launching a rate of 3.97% yesterday.

HSBC's five-year fix is available up to 60% LTV and is available to first-time buyers and homemovers with a £1,4999 fee. A rate of 3.95% is also available with a £999 fee.

NatWest's 3.97% five-year fixed rate is only available to home movers directly, available at 60% LTV with a £1,495 fee.

Prior to that, the previous cheapest rate on the market was Nationwide's five-year fixed rate at 3.99%, launched two weeks ago.

Nationwide's product is also available to new customers moving home and comes with a £1,499 fee.

A host of lenders have reduced mortgage rates after the Bank of England cut interest rates to 5% last Thursday, the first reduction since 2020.