Halifax joins rivals in cutting mortgage rates
Halifax is poised to make significant reductions to interest rates on select fixed mortgage options, potentially alleviating financial strain for some homeowners.
The largest mortgage provider in the UK will implement rate cuts of up to 0.71 percentage points starting Friday. Notably, a five-year fixed mortgage package will now be priced at 5.39%, down from its previous rate of 6.10%.
Similar moves have been made by other lenders such as HSBC, Nationwide, and TSB, who have also adjusted their rates.
The recent uptick in mortgage rates can be attributed to the Bank of England’s efforts to control escalating prices by raising interest rates.
Halifax’s rate cuts will encompass a range of available products, with more modest reductions applied to two-year fixed deals and certain offerings tailored towards first-time homebuyers.
This week has seen other major mortgage lenders also reducing rates. Some experts speculate that this trend might indicate a potential easing of high inflation, which measures the rate of price increases.
Although inflation has decelerated somewhat, it remains significantly above the Bank of England’s targeted 2%, currently standing at 7.9%.
In a consecutive 14th increase, the Bank of England recently raised interest rates from 5% to 5.25%.
With heightened interest rates, individuals are burdened with increased mortgage expenses, ultimately leading to reduced disposable income for other expenditures.
