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Some of Britain's biggest mortgage lenders have slashed mortgage rates in response to the Bank of England's decision to lower the base rate to its lowest level in two years.

Nationwide, TSB and Leeds building society have cut rates, while others are expected to follow suit in the coming hours and days.

Nationwide has reduced its lowest home loan rates for new customers remortgaging, with two- and five-year fixed deals at 60% loan to value now available at 3.84%, down 10 basis points.

The move applies to both new customers and existing ones switching to a new deal, with rates cut by up to 22 basis points in some cases. Three-year remortgage fixes at 90% LTV have also dropped to 4.89%, down 22bps, with a £999 fee.

Trinity Financial's Aaron Strutt commented: "Nationwide has a habit of lowering its rates just after a base rate decision, and this time the society has lowered its remortgage deals."

Nationwide's senior manager for mortgages, Carlo Pileggi, said: "Our fourth set of rate cuts in three weeks shows how we are working hard to support all types of borrowers.

"The changes we're making are aimed at ensuring we are well-positioned to support both new and existing customers who are currently looking for a new mortgage deal and follow the rate cuts made earlier this week which focused more on first-time buyers and home movers."

Leeds Building Society has also reduced rates, with cuts of up to 18bps across its residential mortgage range for homeowners looking to renew, homemovers, and first-time buyers starting Saturday.

Highlights include three-year residential fixes at up to 80% LTV at 4.59%, down 18bps, and five-year fixes at up to 65% LTV at 4.26%, down 5bps.

Jonathan Thompson, senior product & pricing manager at Leeds, said: "We've implemented these changes to give brokers, buyers, and homeowners greater choice as we anticipate further reductions in the market following the Monetary Policy Committee decision."

TSB has also reduced rates on selected residential, product transfer, and additional borrowing deals by up to 20bps. The lender's two-year remortgage fixes at up to 60% LTV are down by up to 20bps, while residential two-year product transfer fixes at the same LTV are down by 10bps.

Mortgage experts are reacting positively to the rate cuts, with many believing they will offer significant savings for borrowers, especially those looking to remortgage before the end of the year.

EHF Mortgages' Managing Director, Justin Moy, told Newspage: "Those looking for a new mortgage deal on their remortgage, or looking to stay with Nationwide, will be delighted to see fixed rates fall a bit further, potentially reducing the cost for many borrowers.

"This is ideal for the 1m+ homeowners looking to refinance between now and the end of the year, as other lenders will look to match this move from Nationwide."

Sean Horton, Managing Director at Respect Mortgages, said: "More good news for remortgage borrowers as Nationwide jumps on the rate-cutting bandwagon. With their fourth round of reductions in three weeks, they're clearly hungry for business.

"The 3.84% starting point for 60% LTV puts them firmly in the competitive mix, but even those with less equity benefit. At 75% LTV, you're looking at 4.09% with a £999 fee, while 90% LTV borrowers get 4.89% - still decent for higher LTV lending."

Daniel Hobbs, CEO at New Leaf Distribution, added: "The UK mortgage market is really starting to fire in May. Given the direction rates are headed in. The market is gaining real momentum as we move into the summer."

Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management, noted: "This is yet more positive news for borrowers following the Bank of England rate decision earlier on Thursday. The rate war is really starting to rage now, with cuts coming on a daily basis. It really does feel like the market is at a turning point."

Pete Mugleston, Mortgage Advisor & Managing Director at Online Mortgage Advisor, concluded: "This is more great news hot on the heels of the Bank of England's rate cut.

"We'll likely see more lenders follow suit as the weeks go by to try to stay competitive. But it all points to a more positive outlook for borrowers as the cuts keep on coming."