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Mortgage Rates are cut by 4% by the Halifax

06/08/2008

The hopes of many UK homeowners have been raised with the announcement of one of the UK’s largest lenders the Halifax cutting their mortgage rates.

This is good news for thousands of homeowners all across the UK and suggests that finally the mortgage market may be improving.

The group of lenders known as HBOS which includes Intelligent Finance, Royal Bank of Scotland and the Halifax have cut rates nine times this year and on one of it’s deals by as much as 0.38%. It seems as the Abbey will follow by also cutting its mortgage rates later this week.

The recent trend on rising mortgage rates finally seems to be turning as a result of a reduction in the cost wholesale funding. Halifax said that in order to stay in line with its competitors, it was repricing.

Experts say that although these cuts are certainly a good sign and give the impression that things are heading in the right direction, the rates are still not good enough to compensate for all the troubles faced by many homeowners over the past few months.

"While the big lenders have cut rates several times in the past few weeks, there is still some way to go before they get back to where they were before the recent spate of rises. Criteria are not easing and the best deals remain available to those with significant equity in their home," said Melanie Bien, the director of Independent Mortgage broker Savills Private Finance.  


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