What major banks are doing to tackle mortgage fears in UK housing market

• Santander is reducing mortgage rates for borrowers with smaller deposits from Thursday, attributing the change to a fall in swap rates which lowers lenders' borrowing costs.
• The reductions include two-year fixed first-time buyer deals for those with 5% to 15% deposits, cut by up to 0.28 percentage points, and selected five-year fixed rates by up to 0.17 percentage points.
• TSB is also set to decrease some of its mortgage rates from Friday, with two-year fixed house purchase mortgages seeing reductions of up to 0.45 percentage points.
• Industry experts believe these moves by major lenders like Santander could signal the start of a broader market repricing, offering some relief to borrowers after a period of rising rates.
• Borrowers are advised to consider securing current deals and seeking professional advice, as market volatility and potential further rate changes mean the cheapest option today may not be so in a few weeks.

IN FULL

‘Meaningful relief for borrowers’ as banks prepare to cut mortgage rates