Mortgage giants Halifax and Nationwide Building Society have cut rates again in a bid to tempt first-time buyers through the doors.
On Tuesday, Halifax threw down the gauntlet by slashing rates on its two-year 85 to 90 per cent loan-to-value first-time buyer mortgages by 0.3 per cent.
Its two-year fixed rate at 80 per cent LTV is now priced at 3.44 per cent, but with a hefty £1,499 fee, while its five-year fix at 90 per cent LTV is at 3.99 per cent with a £999 fee.
The new build first-time buyer deal for those with a deposit between 10 and 15 per cent has also plummeted to 3.79 per cent while the 80 to 90 per cent affordable housing shared equity shared ownership first-time buyer mortgage is now 3.84 per cent.
Halifax also recently launched a separate £750 cashback offer which is made automatically on completion and it will pay for a standard valuation and basic legal fees.
Nationwide countered the very next day, slashing rates across its two, three, five and 10-year fixed rate deals.
Borrowers – either buying for the first time, moving house or remortgaging – can now lock in to rock bottom interest rates for 10 years at just 2.99 per cent.
Rates for the five-year fix start at 2.19 per cent for the 60 per cent LTV product with a £999 fee.
For those with smaller deposits, the two-year and three-year fixed rate products at 95 per cent LTV have been reduced, with the two-year deal starting at 3.89 per cent and the three-year starting at 4.39 per cent, both with a £999 fee.
All mortgage valuations with Nationwide are now fee-free, while first-time buyers are able to access a £500 cashback to help with the cost of moving.
Nationwide Flex main current account holders who are taking out a Nationwide mortgage are also eligible for an additional £250 cashback.