Mortgages: Halifax joins rivals in cutting rates on mortgages

Halifax is acceptable to sharply chopped rates connected immoderate of its fixed owe deals, perchance easing unit connected immoderate homeowners.

The UK's biggest owe lender volition trim rates by up to 0.71 percent points from Friday, with a five-year fixed woody priced astatine 5.39% from 6.10%.

Other lenders specified arsenic HSBC, Nationwide and TSB person chopped immoderate rates.

Mortgage rates person risen arsenic the Bank of England has pushed up involvement rates successful a bid to tame soaring prices.

Rates volition beryllium chopped by Halifax crossed a scope of products connected offer, with smaller cuts connected two-year fixed deals and immoderate aimed astatine first-time buyers.

Other large owe lenders person been cutting rates this week, with immoderate experts suggesting it could beryllium a motion that precocious ostentation - which measures the complaint of terms rises - could beryllium starting to easiness off.

While ostentation has slowed, astatine 7.9% it remains astir 4 times higher than the Bank of England's 2% target.

The Bank of England lifted involvement rates up for the 14th clip successful a enactment past week from 5% to 5.25%.

Higher involvement rates means radical person to wage much for their mortgages, for example, which means they person little wealth to walk connected different things.

Among the complaint reductions, HSBC has chopped immoderate homebuyer, first-time purchaser and re-mortgage rates connected connection by up to 0.35 percent points, arsenic good arsenic adding a £500 cashback inducement to immoderate deals.

Nationwide is besides reducing the rates connected connection for those re-mortgaging by up to 0.35% crossed two, 3 and five-year fixed deals.

While complaint cuts mightiness beryllium welcome, if radical are re-mortgaging oregon are moving onto a adaptable complaint mortgage, their monthly payments are inactive apt to beryllium overmuch higher than the aforesaid clip past year.

Aaron Strutt, from owe broker Trinity Financial said: "More of the larger banks and gathering societies are lowering their rates which is bully quality particularly fixed the standard of complaint increases we person seen successful caller months."

"It would not beryllium a astonishment if much of them amended their rates implicit the coming weeks," helium added. "Lenders are starting to realise the marketplace is slowing down, and they request to amended pricing to pull much borrowers."