Lenders have reduced rates on selected fixed-rate purchase and remortgage deals
Halifax and Lloyds Bank have lowered mortgage rates across a range of fixed-rate products, covering first-time buyer and homemover purchases on two-, three- and five-year terms, as well as selected two- and three-year fixed remortgages.
Reductions reach up to 0.12% on home purchase products and up to 0.14% on remortgage deals.
For homemovers, the two-year fixed rate up to 90% loan-to-value (LTV) has been cut by 0.10%, with the no-fee option now at 5.26% and the £999-fee version at 5.02%.
On three-year fixes, the fee-free product up to 85% LTV has fallen by 0.09% to 5.02%, with the £999-fee equivalent now at 4.84%. At up to 90% LTV, both options have been reduced by 0.12%, to 5.36% and 5.19% respectively.
Five-year fixes at 60% LTV have been cut by 0.10%, leaving the fee-free rate at 4.67% and the £999-fee option at 4.55%. At up to 90% LTV, reductions of 0.12% bring those rates to 5.04% and 4.93% respectively.
On remortgages, the two-year fix with a £1,999 fee at up to 60% LTV has been reduced by 0.09% to 4.61%, while the equivalent at up to 75% LTV has fallen by 0.14% to 4.66%. Selected three-year fixed remortgage rates have also been cut by 0.11%.
"While the Halifax price cuts are not huge, at least they are heading in the right direction," said Aaron Strutt (pictured right), product director at Trinity Financial.
"These latest rate changes show how keen the lenders are to write more mortgage business, especially as many borrowers have been holding off because of higher monthly repayments. Halifax is now offering two-year fixes from 4.42%, which are pretty much market leading, as well as five-year fixes from 4.55%.
"Barclays' reductions [last week] are welcome especially as the bank now has fixes from 4.39% and better first-time buyer rates for those needing 95% mortgages. The price cuts should help first-time buyers, home movers and remortgage customers, although affordability remains the biggest challenge for many households."
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