Meanwhile, the Co-operative Bank will cut its two-year, three-year, and five-year fixed rates on certain purchase mortgages by 0.14 percentage points on Thursday.
Brokers expect further falls in the coming days as the “Big Six” lenders – Halifax, Nationwide, HSBC, Santander, Lloyds, and Natwest – continue to adopt a “wait and see” approach by so far not announcing any cuts.
When they drop rates, brokers say other lenders tend to follow.
Central banks cut interest rates in response to concerns of an economic downturn in the hope that cheaper borrowing will encourage more spending.
On Wednesday, the consensus among economists was that there will be four Bank of England rate cuts over the next 12 months. At the start of the week the consensus was just two.
A Nationwide spokesperson told the BBC: “We keep our fixed mortgage rates under regular review, and we have already made a number of rate cuts over the last couple of months.”
Rachel Springall from Moneyfacts said it “traditionally takes a couple of weeks for lenders to respond to swap market volatility”.
