Mortgage price war kicks off as Halifax cuts rates

Halifax, the largest mortgage lender in the country, has cut interest rates on several of its deals, raising hopes for lower home loan costs. Other lenders owned by Lloyds Banking Group, such as Scottish Widows and BM Solutions, have also reduced their prices. Halifax said it was cutting rates by up to 0.92 percentage points for product transfers and 0.83 on remortgages. It now offers a two-year fix at 4.81% for those with 25% equity in their home. Leeds Building Society followed Halifax by announcing a string of cuts of up to 0.49 percentage points. David Hollingworth, of L&C Mortgages, said rates had been dropping "at pace" and added: "That trend looks as though it could accelerate further as swap rates have fallen further over the festive break." He said that after the reduction by Halifax "it would only be a matter of time before others do the same.” The average 2-year fixed residential mortgage rate is now 5.93%, down from 5.94% at the end of 2023, while the average 5-year fixed residential mortgage rate is now 5.54%, down from 5.56%. 

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