Nationwide and Virgin Money have joined NatWest, Santander and numerous other lenders in slashing their mortgage rates on Monday. While brokers suggested lenders appear to be gaining confidence, they also cautioned that borrowers should view this as “positive momentum rather than a guarantee cheaper deals will keep coming”.

From Tuesday, Nationwide is trimming selected fixed rates across its First Time Buyer, Home Mover, Existing Customers Moving Home and Remortgage product ranges by up to 0.36%. Virgin has also unveiled some “pretty large” rate reductions, according to one broker.

Throughout its Purchase range, two-year fixed rates will be lowered by up to 0.26%, five-year fixed rates by up to 0.24% and Shared Ownership fixed rates by up to 0.26%. On the remortgage side, two-year Virgin fixed rates will be trimmed by up to 0.24% and five-year fixed rates by up to 0.10%.

Carlo Pileggi, head of mortgage products at Nationwide, said: “We’re pleased to be cutting our mortgage rates once again, with the biggest reductions this time aimed at first-time buyers. Some of our biggest rate cuts are being made on our higher loan-to-value mortgages, which will help those with smaller deposits to take their first step onto the property ladder.”

Brokers welcomed the reductions but warned that conditions remain unpredictable.

Nouran Moustafa, practice principal and IFA at Roxton Wealth, said: “These cuts are welcome, but borrowers should not assume they are guaranteed to last. Mortgage pricing is not only about lender appetite, but is influenced by swap rates, gilt yields and expectations around inflation and the Bank of England base rate.”

“If geopolitical tensions escalate and oil prices move higher, that can quickly feed back into inflation fears and make markets more nervous. That is where cuts become fragile. I do not think borrowers should panic, but I also would not wait forever for a perfect rate.

“If a deal works for someone’s budget and circumstances, it may be sensible to secure it, particularly where the lender allows a product switch before completion if pricing improves. The market is moving in the right direction, but still sensitive to global shocks.

“Virgin, Nationwide, NatWest and Santander cutting rates is encouraging, but until inflation and geopolitical risks calm down, borrowers should see this as positive momentum rather than a guarantee cheaper deals will keep coming.”

Emma Jones, managing director at Runcorn-based Whenthebanksaysno.co.uk, concurred that the current direction of travel on rates was far from guaranteed: “Last week’s momentum has continued into this week, despite no clear evidence that the Middle East conflict is close to being resolved.

“Lenders appear more confident, but people considering buying or remortgaging should not get complacent and assume rates will continue to fall because we have seen how quickly things can turn in recent months.”

Omer Mehmet, managing director at Welling-based Trinity Finance, shared a similar view: “You sense that lenders are keen to boost their business volumes right now, as the way rates are being cut does not entirely sync with geopolitical events, which remain uncertain.”

Dariusz Karpowicz, director at Doncaster-based Albion Financial Advice, welcomed the reductions as “genuinely good news”. He continued: “Lenders are clearly competing again rather than nibbling at the edges, and borrowers on shorter fixes will feel the sharpest benefit.

“That said, Trump calling Iran’s response to his peace plan “totally unacceptable” overnight is exactly the sort of headline that rattles swap rates. Oil spikes feed inflation fears, and inflation fears feed pricing.”

Aaron Strutt, product and communications director at London-based Trinity Financial, characterised the cuts as “pretty large”, while also striking a note of caution.

He said: “It is hard to predict exactly what will happen in the mortgage market over the short term due to the ongoing fluctuating funding costs. Thankfully, there are more lenders offering two-year fixes below 4.5% now and five-year fixes priced at 4.70% or slightly lower.

“The good news is that rates are reasonably priced again in general and the anticipated pricing hikes have not happened yet. HSBC is topping the mortgage best buy tables at the moment.”

Andrew Montlake, CEO at London-based Coreco, a broker, said borrowers would welcome these cuts even though rates are still higher than they were before the war in the Middle East.

He continued: “There’s still quite some way to go before we return to the level rates were at before the conflict, but for now mortgage rates are moving in the right direction, and for some borrowers the reductions now emerging will help ease some of the pressure.”