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• It has also launched new fixed rates for larger loans (250,000 to 3 million).
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HSBC’s five-year fixed rate for home purchase (60percent LTV) is down by 0.19 percentage points to 4.84percent with a 999 fee. Rival Santander is offering the market-leading rate in this category at 4.64percent with a 999 fee. HSBC has also launched a fee-free three-year fixed rate for first-time buyers and home movers at 95percent loan to value with 350 cashback.

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The three and 10-year fixed rates for remortgage at HSBC have been cut by up to 0.45 percentage points. The three-year deal is now at 5.69percent (60percent LTV) with a 999 fee, for example. At the same time the mutual lender has said it will cut all fixed rates for new and existing buy-to-let borrowers. Coventry building society was quick out of the traps, announcing reductions across its fixed-rate mortgage deals for new and existing customers from Tuesday next week .

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It is also offering a fee-free two-year fixed rate for BTL purchase at 6.44percent (60percent LTV). The bank cut fixed rates for purchase by up to 0.6 percentage points earlier in the week. Gen Hhas cut the cost of two- and five-year fixed rates by up to 0.17 percentage points.

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Others are now expected to follow Halifax and Santander in trimming rates. But Barclays has bucked the trend in announcing an increase to selected two and three-year fixed rates from across its range by as much as 0.3 percentage points, also from tomorrow . Over five-years Santander is offering a remortgage deal at 4.42percent (60percent loan to value) with a 999 fee. Over five years, Barclays has lowered its rates from 4.41percent to 4.23percent on purchase deals at 60percent loan to value with an 899 fee.