Santander is cutting most mortgage rates for new customers and buy-to-let mortgages on Monday, with cuts of up to 36 basis points on some deals.
The lender is also reducing some of its product transfer rates and launching new major loan options.
It follows rate cuts at other major lenders, Barclays and HSBC, earlier this week.
Within Santander’s new offering, all three-year fixed interest rates with an LTV of 60% and 75% will be reduced by up to 36 basis points.
For new customers moving, the 60%, 75%, 85% and 90% LTV fixed interest rates for two and five years will decrease by up to 21 basis points.
For first-time buyers, including those buying new builds, all 85% and 90% LTV fixed rates over two and five years will fall by up to 16 basis points.
In the new mortgage refinancing range, all 60%, 75%, 85% and 90% LTV fixed interest rates over two and five years will fall by up to 13 basis points.
Prices will also fall on some product transfer agreements, with residential rates reduced by up to 8 basis points and buy-to-let rates reduced by up to 9 basis points.
New major mortgage deals are being launched with minimum loans of £500,000 up to a maximum of £5 million.
Rates start from 3.73% and costs from £1,999.
David Hollingworth, deputy director of L&C Mortgages, said: “There are early positive signs for mortgage rates after inflation held steady and below expectations in September.
“Hopes that inflation may have peaked at lower levels than expected have opened the door to a cut in the Bank of England’s key interest rate before the end of the year.
“As market forecasts have improved, swap rates have fallen further, which should give lenders the opportunity to improve their fixed interest rates.
“We know that once steps are taken by some of the major lenders, it will inevitably lead to others following suit.
“If the more positive outlook in markets holds, we could see a new round of price revisions that will lower fixed interest rates.
“However, with the Budget looming, it is difficult to predict where sentiment could go.
“This has already caused some fear among debtors and there are therefore still good arguments for taking an interest rate now and keeping a close eye on market movements from now on.
“That provides certainty, but still allows for a jump to a lower rate before completion if we see further improvements.”