Justin Moy, managing director at Essex-based EHF Mortgages, said: “Just a few days since their last repricing, this is evidence that the rate chase is well under way.
“The high street lenders are definitely trying to lead the best buy tables and grab more market share.
“It will take much deeper rate reductions to make a real difference but any improvements are welcome.”
It comes after Andrew Bailey yesterday signalled that the Bank of England could soon be finished raising interest rates.
““I think we are much nearer now to the top of the cycle,” he said. “I am not, therefore, saying that we are at the top of the cycle because we still have a meeting to come. But I think we are much nearer to it, on interest rates, based on the current evidence.”
That encouraged City traders to pare back their bets on interest rate hikes, with markets now seeing a one-in-four chance that the Bank keeps its rate at 5.25% - the first pause in 15 meetings - when it meets on 21 September. Markets are also now pricing in a peak of 5.75%, compared to a previous peak of 6%.
Other lenders including TSB also cut rates today, while Santander did so yesterday.
The cut also comes amid new data showing that recent surges in interest rates are starting to hit house prices harder than before.
According to Halifax, the average London home has lost nearly £23,000 in value over the past year.