Louise Cuming, head of mortgages at moneysupermarket.com, says the move is recognition that rates were too high and that lenders are continuing to use criteria to “cherry-pick” borrowers.
Cuming says: “We are in the midst of a mortgage crisis, yet three quarters of the nation’s biggest lenders have recently slashed rates on deals.
“This is good for borrowers who can take heart in some positive news – a rarity during the current credit crisis. I am also pleased see lenders making a real effort to make borrowing more affordable.
“Sadly the good news is restricted to customers with a spotless credit rating and a large deposit – most commonly around the 25% mark.
“Lenders, of course, are cherry picking which customers they offer the lowest rates to, meaning the gap between the ‘haves’ and ‘have nots’ in the UK is set to widen further.”