Three major mortgage lenders have reduced interest rates on their mortgage deals, with Halifax leading the way by lowering rates by up to 0.3 percentage points on remortgage products.
Homebuyers and first-time buyers are also seeing reductions, with rates dropping by as much as 0.11 percentage points.
Industry analysts suggest that these rate cuts may be a response to anticipation of the Bank of England lowering the base interest rate tomorrow. Financial markets are widely predicting a 0.25 percentage point reduction, which would bring the rate down to 4.5%.
Andrew Montlake, managing director at mortgage broking Coreco, told Newspage: “Halifax’s rate cuts often set a precedent for other lenders to follow, so this could spark a series of reductions across the market. The markets have already factored in the expectation of a rate cut on Thursday.
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Halifax is now offering one of the most competitive five-year fixed rates for homeowners looking to remortgage with at least 40% equity in their property. Halifax has set its new five-year fixed rate at 4.18%, which includes a £999 fee. On a £200,000 mortgage over a 25-year term, this would result in monthly payments of approximately £1,076.
For borrowers needing a mortgage covering up to 75% of their home’s value, Halifax has introduced a 4.36% five-year fixed rate, also accompanied by a £999 fee.
Following Halifax’s announcement, HSBC and Clydesdale Bank have also revealed plans to reduce rates.
Clydesdale Bank implemented its rate reductions today, cutting several two-year and five-year fixed-rate deals by as much as 0.28 percentage points.
Meanwhile, HSBC’s new rates will go into effect tomorrow, with the lender announcing that the reductions will apply across a broad range of residential and buy-to-let mortgage products. However, the lender will only disclose the specific rates at that time.
