HSBC has repriced its range and introduced a new 5-year fixed rate for remortgages at 3.99% to 60% loan-to-value (LTV) with a £999 fee.
The reduction in fixed mortgage rates continues with the launch of the first 5-year fixed to drop below 4% since the mini-Budget sent rates rocketing in September.
The last 5-year deal to offer a rate below 4% was withdrawn in early October and fixed rates climbed steeply thereafter.
David Hollingworth, associate director at L&C, said: “The thought of being able to fix at a rate lower than base rate would have sounded like dreamland in recent months.
“But despite base rate continuing its upward trajectory fixed rates have been falling and borrowers are now faced with a very different picture.
“Although those coming to the end of a fixed rate taken during the low in rates of recent years, will still be faced with higher payments than they have been used to, it’s a far cry from the prospect of rates at 6% or more.
“These deals are beginning to offer rates that many may have feared were headed for extinction.
“Those borrowers that understandably decided to sit on their hands when rates went through the roof last October, should now seriously consider if it’s time to take advantage of these significant improvements.”
The L&C Remortgage Tracker showed that the average of the Top Ten lenders’ lowest 2- and 5-year fixed rates had dropped by more than 1.20% between November and the end of January.
That shows no sign of slowing despite last week’s base rate rise.
