Barclays, Halifax and Nationwide cut mortgage rates below 5% days BEFORE the Bank of England is expected to hike

Virgin Money is also preparing rate cuts of up to 0.17 per cent, adding to a wave of reductions driven partly by lenders competing in a sluggish housing market.

A data graphic showing mortgage rates from major lenders, as broker Stephen Perkins cautioned borrowers against expecting mortgage rates to move in lockstep with the base rate in either direction.

Barclays has reduced its rates by up to 0.3 percentage points, with its lowest deal now at 4.89 per cent — a notable development given that five-year fixed rates had only recently fallen through the 6 per cent threshold. Halifax cut by up to 0.22 points, bringing its floor to 4.93 per cent, while Nationwide and its sister bank Virgin Money are also scheduled to reduce rates from Wednesday. The reductions come even as the Bank of England prepares to lift the base rate from 3.75 per cent to 4 per cent on Thursday.

The cuts only benefit those with the largest deposits — no mainstream lender is yet below 5% for buyers with less than 40% equity.

Average rates remain steep at 5.97% for a two-year fix and 5.99% for a five-year fix, according to Moneyfacts.

Broker Stephen Perkins warned borrowers: 'Do not assume mortgage rates automatically follow the base rate in either direction.'

iNewsBarclays, Halifax and Nationwide cut mortgage rates as sub-5% deals available again Daily MailNationwide, Barclays and Halifax cut mortgage rates The TimesBarclays cuts mortgage rates despite interest warning This Is MoneyNationwide, Barclays and Halifax cut mortgage rates despite Bank of England being set to hike The IntermediaryNationwide cuts fixed mortgage rates by up to 0.15% - The Intermediary

Read today's full feed at The Newshound →