UK banks cut mortgage rates ahead of election and Bank of England decision

HSBC Holdings (LSE:HSBC) has become the latest UK bank to cut mortgage rates, after Barclays (LSE:BARC) and NatWest (LSE:NWG) lead the way last week.

Today, HSBC said its rate cuts would come into effect from Wednesday.

Barclays is offering a five-year fixed-rate mortgage at 4.23% for customers with a deposit of at least 40% – marking a notable reduction versus the current average five-year deal interest rate of 5.53%.

The Bank of England's Monetary Policy Committee, which sets interest rates, is set to meet on 1 August.

Although the last meeting resulted in rates being held, economists noted a significant shift in tone, indicating a possible rate cut in the near future.