Halifax has reduced its five-year fixed-rate deals by up to 0.71%, and two-year fixed-rate loans will fall by as much as 0.27%.
First Direct also cut its terms and both lenders confirmed the cheaper deals are on offer from tomorrow. NatWest also announced reductions on fixed rate deals by up to 0.65% on both two and five-year fixed rates.
Aaron Strutt, from mortgage broker Trinity Financial, said: “Lenders are starting to realise the market is slowing down, and they need to attract more borrowers. More of the larger banks and building societies are lowering their rates, which is good news given the scale of rate increases we have seen in recent months.”
Last week the Bank of England raised the base rate for the 14th consecutive month from 5% to 5.25%. While inflation has slowed, at 7.9% it remains nearly four times higher than the Bank’s 2% target.
However, several major mortgage lenders have been cutting rates, amid signs that stubbornly high inflation is easing.
HSBC UK has cut some rates on offer by up to 0.35%, as well as adding a £500 cashback incentive to some deals.
Nationwide previously announced reductions of up to 0.55% on its fixed mortgage products from Wednesday.
And TSB made reductions of up to 0.40% to selected five-year fixed homeowner mortgages, with rates starting from 5.4 percent.
Mark Harris, of mortgage broker SPF Private Clients, said: “Those who have made reductions to their rates should be applauded, and hopefully those who haven’t will follow soon.”
Emily Williams, of estate agent Savills, said: “This will ease some of the affordability challenges faced by buyers and bring more confidence to the market.”
Meanwhile, repossessions are set to increase after a growing number of homeowners and landlords fell into mortgage arrears, said UK Finance.