Lenders are continuing to cut mortgage rates, with a string of new deals announced.

The average two-year fixed homeowner mortgage rate yesterday fell to 5.62%, down from 5.66% on Monday, according to Moneyfacts, with further reductions anticipated in the coming days.

The average five-year fixed homeowner mortgage rate on Tuesday morning was 5.24%, falling from 5.28% a day earlier.

HSBC UK said yesterday that rates have been reduced on its homeowner mortgage range by up to 0.4%.

“We’re pleased to announce cuts to mortgage rates across our UK residential range for first-time buyers and home movers, as well as some reductions on our switcher range,” A HSBC UK spokesperson said.

The Mortgage Works (TMW) announced that from today, its reduced rates for buy-to-let borrowers will include a two-year fixed-rate deal at 3.69% for those with a 35% deposit who are looking to purchase a property or remortgage.

Joe Avarne, senior manager, buy-to-let mortgages at TMW, said: “These changes demonstrate our continued support to landlords and the sector.”

NatWest, Metro Bank and TSB are also among the lenders to be making reductions, as the falling rate of inflation leaves many analysts predicting that the Bank of England will cut the benchmark interest rate on a number of occasions this year.

Financial markets expect to see five interest rate cuts this year, from 5.25% to below 4%.

However, while rates are significantly lower year-on-year, they remain much higher than many homeowners became accustomed to for a decade until late 2021.