Most of the UK’s largest lenders are expected to cut mortgage borrowing rates this week in a bid to generate new business.

Analysts expect major lenders, including Lloyds Banking Group, Barclays, Nationwide and Santander, to reduce borrowing rates to help stimulate home buyer demand.

HSBC and NatWest announced they were cutting their mortgage rates again yesterday in a bid to ease some pressure on UK home buyers and those seeking remortgage deals.

HSBC said it was cutting rates across many of its new fixed products – including some of its first-time buyer, home mover and remortgage deals – with effect from today.

Fellow high street lender NatWest said it would also be cutting rates by up to 0.35% on selected fixed deals from today.

Accord Mortgages, part of Yorkshire Building Society, also said that all of its fixed rates were being cut by 0.2% from Tuesday.