Halifax cut rates again

Halifax announced today that it is reducing its mortgage rates for the second time in seven days.

The UK's largest mortgage lender said it was reducing its two-year fixed rate mortgages by 0.1 per cent and its five year fixed rate by 0.15 per cent, in an effort to keep its pricing in line with competitors.

The rate cuts, which will come into effect from tomorrow (July 19th), follow a number of similar reductions from Nationwide, Abbey and Lloyds TSB - after a fall in swap rates upon which fixed rate mortgages are based.

As a result of these changes, a consumer on a five year fixed rate deal will see a fall to 6.34 per cent, while a customer on a two year fixed rate deal - with at least a 25 per cent deposit - will see a fall to 6.47 per cent.

Last week the Bank of England resisted pressure from the housing industry and kept interest rates on hold at five per cent.

Mortgages News posted on 18/07/2008 15:48:40