From This is Money:
Previously, if a lender unveiled a clear, market-leading rate, other banks and building societies would follow.
But although HSBC’s attractive deal captured headlines, it has not resulted in a rush of competing offers.
David Hollingworth at independent mortgage broker London & Country says that in the current climate lenders remain risk averse and want to keep their ‘heads below the parapet’.
‘Short-term borrowing costs for the banks dipped again last week and are at their lowest level this year,’ he says.
‘Normally when this happens we’d expect some easing in mortgage rates, but lenders simply don’t want the business.’
Nationwide Building Society and Alliance & Leicester tweaked some of their mortgage deals downwards last week by a maximum of 0.16 and 0.1 of a percentage point respectively. But some of Nationwide’s fixed remortgage rates rose.
HSBC’s 1.99% two-year discounted rate loan is only available to borrowers with at least 40% equity or deposit and there is…