Despite the recent increase to the Bank of England’s Base Rate, two more lenders have cut the cost of their mortgages this week, following a raft of recent rate cuts.

Specialist Bank Aldermore has reduced rates for borrowers with a modest deposit, targeting first-time buyers, second steppers and those looking to remortgage.

Borrowers can choose from a two-year fixed rate mortgage with a £995 product fee or a fee-free option. Those with a 5% deposit pay 4.78% or 5.08% respectively. If you can muster 10% upfront the rates fall to 4.28% or 4.58% with no fee.

The lender has also reviewed rates across its three and five-year fixed ranges and tweaked its lending criteria for borrowers with a history of financial difficulty or complex borrowing needs.

Damian Thompson, director of mortgages at Aldermore, said: “At Aldermore we recognise people’s situations can be complex, so it is important to consider each case on an individual basis. Combined with a human approach to lending, these latest changes across our residential mortgage range provide much needed financial support for those going through the challenging process of buying a home.”

Sainsbury’s Bank reduces rates

This weeks Sainsbury’s Bank also cut its rates across its range of mortgages.

For homebuyers with 40% upfront, two-year fixed rates now start from 1.85% with no fee and five-year deals from 1.89%.

Rates for remortgagors have also fallen. Two-year fixed rates are down to 1.39% with a £1,495 fee and £250 cashback for borrowers with 40% equity, while five-year deals start at 1.94% with a £995 product fee and £250 cashback.