HSBC became the first major bank to offer fixed rate deals under 4% yesterday with rivals expected to follow suit shortly.

HSBC took an axe to its five-year fixed rate, slashing it from 4.79 percent to 3.94% for re-mortgaging home owners with 60% equity – this is positive news as its rates were on offers to borrowers looking to re-mortgage , a departure fromm the recent trend of pricing in favour of pricing that favours those moving home.

From Thursday, HSBC’s two-year fixed rate for remortgages will dip below 4.50% for the first time since June last year. For those looking to fix longer term, HSBC is now offering a 10 year fixed rate deal starting from 3.99%, suggesting that the bank is convinced rates are only going to lower.

The cuts come after Britain’s largest mortgage lender Halifax, cut the price of its two -year fixed-rate mortgage from 5,64% to 4.81% on Tuesday. Taking up that new rate on a £200,000, 25 year mortgage would cut monthly repayments from £1,245 to £1,142, saving £98 per month or £1,176 a year.

Leeds Building society and a number of smaller specialist lenders announced that thy too were cutting rates.

Many homeowners saw their monthly payments double as they came off deals that were taken out years earlier when the cheap deals were available.

Experts have predicted that there could be as many as four Bank of England interest rate cuts in 2024 prompting providers to start cutting their fees. With large numbers of borrowers anxiously approaching the expiry of fixed rates taken during the ultra-low period, this is a welcome move, and hopefully more lenders will follow suit.

Homeowners were given a boost last month when swap rates fell heavily after data revealed November’s rate of inflation had come in lower than expected at 3.9%.

David Phillip commented ‘we thought that the new Year would start with a bang and that’s proving to be the case – we have had a busy week with vendors looking to launch their properties in January and as a result of the recent news around mortgage rates and growing confidence in the future of the economy this will have a positive impact on those looking to move home’

If you are considering moving home in January and would like a free market appraisal call David Phillip FRICS on 01134 676 400

David Phillip Estate Agents, 86, Leeds Road, Bramhope, Leeds, LS16 9AN w:davidphillip.co.uk.

Covering North Leeds, Bramhope, Cookridge, Adel, Pool-in-Wharfedale and Otley