Tue Sep 10 15:53:00 UTC 2024: ## Halifax Joins Rate War, Cutting Mortgage Rates for Home Movers and First-Time Buyers
**London, UK** – Britain’s largest mortgage lender, Halifax, has joined the ongoing rate war in the housing market, announcing a new round of cuts to its 2- and 5-year home loan products. The reductions, effective tomorrow, apply to both home movers and first-time buyers seeking loans up to 90 percent of a property’s value.
This move follows a series of recent rate cuts by other major banks and building societies, fueled by a decline in swap rates – the interest rates financial institutions charge each other for lending. With the 2-year Sonia swap reaching its lowest level in 18 months, lenders are passing on the savings to borrowers.
“As swaps fall, UK borrowers are striking gold,” said Darryl Dhoffer, Mortgage Broker at The Mortgage Expert. “Lenders use these rates to set mortgage rates, so a falling swap is like a treasure chest opening up.”
While specific details of the Halifax reductions will be unveiled Wednesday morning, experts anticipate significant decreases, particularly for 2-year fixed-rate deals.
“It is anticipated that both 5-year and especially 2-year deals should see some good decreases,” said Simon Bridgland, Director at Release Freedom. “This is great news for borrowers either buying for the first time or moving home.”
Industry analysts believe that the competitive rate cuts are a positive development for homebuyers, but caution that the situation could change rapidly. The upcoming inflation figures next week could impact future rate movements.
“It’s a game of ‘Simon Says’ in the mortgage world, and this time, he’s telling lenders to ‘keep cutting your rates’,” said Gabriel McKeown, Head of Macroeconomics at Sad Rabbit Investments. “So, although the latest set of rate cuts light a path through the uncertainty for borrowers, the fog of economic instability is ever present.”
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