Lloyds is today launching a new Loyalty Premier mortgage range with a 20 basis point discount for borrowers who have one of its Premier current accounts.
The banking group has also cut interest rates on current Halifax and BM Solutions offerings by up to 15 basis points.
The new Loyalty Premier products are now available on the intermediary’s website and offer a 20 basis point discount on the equivalent Halifax rate.
For example, the lowest two-year rate for homebuyers is 4.33% for core Halifax borrowers, but 4.13% for Lloyds Premier customers.
The Premier Loyalty products have their own codes for brokers to use.
At the same time, Halifax has reduced fixed rates for movers and first-time buyers, while BM has reduced buy-to-let purchase and remortgage deals.
Last week, Lloyds Banking Group announced it is phasing out its 173-year-old Halifax brand whereby all mortgages will soon appear under the Lloyds flag.
The changes come amid a wave of lenders cutting prices in the past 24 hours Rural, with cuts of up to 19 basis points taking effect today.
Kensington Mortgages has also cut interest rates by up to 40 basis points today.
John Charcol, technical manager at mortgage adviser Nicholas Mendes, summarizes lenders’ latest moves: “Nationwide is leading the way with cuts of up to 19 basis points on fixed and 12 basis points on trackers, effective today.
“Virgin Money is moving in the same direction, up to 16 basis points discount on refinable mortgages with a fixed term of two years.
“BM Solutions and Halifax are reducing their core range by 15 basis points from today, with an additional 20 basis points discount for Lloyds Premier customers.”
Mendes added: “The big story in the swap market is that one- to five-year SONIA swaps are now all below 4%, with two-year at 3.913% and five-year at 3.999%, down from 4.159% and 4.176% respectively in early June.
“That is a hugely positive signal for the market.
“Funding below 4% in the short and medium term gives lenders real room to compete for business, and the current lender cuts show just that, with more likely to come if swaps hold at these levels.
“Six lenders changing their prices within 24 hours shows that no one wants to look expensive in the second half of the year, especially as remortgage volumes pick up.
“Coventry is the outlier, pushing up some fixed residential interest rates while cutting BTL, showing there is not a uniform race to the bottom.”
Mendes says borrowers shouldn’t try to time the absolute bottom of the interest rate market, as this could end up costing more than it saves.
Rachel Geddes, director of strategic lending relationships at the Mortgage Advice Bureau, said: “This latest wave of rate cuts is a positive start to the week for borrowers, with lower fixed and tracker rates across a range of products offering greater choice for first-time buyers, home movers and remortgages.”