Alongside the major lenders, Coventry Building Society has also cut rates today by all fixed purchase rates for new borrowers at 90-95% LTV and all fixed rates for existing customers at the same tiers.
Rachel Springall, at financial data provider Moneyfacts, said that it was “only a matter of time” before sub-4% mortgages returned due to money market swap rates falling in recent weeks, coupled with a cut to the bank base rate.
The lender has also reduced two-year fixed first-time buyer and home mover rates up to 75% LTV and at 90-95% LTV by up to 0.1%.
From today, borrowers can apply for one of four new residential products of two and five-year fixed-rate deals at 3.99% at Santander, although they will need a 40% deposit as they are 60% loan to value (LTV).
The mortgage rate war has truly begun as several lenders slash rates, with two cutting them below 4% for the first time this year.
