Lenders are cutting mortgage rates across the sector as they battle for market share during the market slowdown.
Skipton Building Society announced today (23 June) it would be reducing rates by up to 0.2 per cent across selected two and five year products.
The reduced rate products include a two-year fixed rate at 1.79 per cent up to 80 per cent LTV and a five year fixed rate at 2.45 per cent up to 70 per cent LTV.
Both come with a £995 fee.
The news comes just hours after TSB revealed it was to slash rates by up to 0.6 per cent.
Earlier this month Accord reduced rates on its 75 per cent, 80 per cent, 85 per cent and 95 per cent LTV mortgages, including a 0.15 per cent reduction on two of its 90 per cent LTV two-year fixed rate mortgages.
All three lenders stated products are regularly reviewed to give borrowers access to the best products.
But some brokers said the rate cuts point to lenders chasing business during the lull the market currently finds itself in.
After a successful start to the year thanks to a surge in buy-to-let applications from investors keen to complete before the new stamp duty charges came into play, figures show the market is starting to slow.
The latest figures from the Council of Mortgage Lenders show mortgage lending hit £8.1bn for house purchase in April, down 40 per cent month-on-month and 4 per cent year-on-year.
First-time buyer borrowing was down 11 per cent on March.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said once the European Union referendum is over, more lenders will be chasing volume hard.
He said: “If the status quo is retained then other lenders could well offer significantly cheaper rates to attract business.
“Would-be buyers haven’t been making decisions in recent months with many waiting to see what happens so lenders’ business levels will have been affected.
“The lenders who have reduced rates recently have jumped the gun a little in readiness for more buyers being prepared to make a move and we expect others to follow.”
Phil Whitehouse, managing director of MCI Mortgage Club, said competition is heating up as lenders “battle for market share in an increasingly quieter market”.
He added: “I’m sure we’ll see rates fall across the board as lenders try to entice borrowers - and brokers - with more competitive deals.”
