Halifax has cut mortgage rates by up to 0.15% from Friday, a move that could spark a price war among Britain's biggest lenders. The banking giant is reducing rates across its range, with first-time buyer and homemover products cut by up to 0.15% and remortgage deals reduced by up to 0.13%. This comes just a week after Halifax raised rates by 0.12%.
Lender's Move Signals Market Shift
Mortgage experts say the significance lies in one of Britain's biggest lenders deciding it has room to cut rates. Jamie Elvin from Strive Mortgages said Halifax had "fired the first shot" in a potential mortgage price war.
"A 0.15% cut might not look dramatic on paper, but when a lender the size of Halifax moves, the rest of the market takes notice," he said. "We're not in a mortgage price war yet, but Halifax may just have fired the first shot."
Brokers Expect Rivals to Follow
Brokers expect other major lenders to follow suit, putting competitive pressure across the market. The cuts could make a crucial difference to first-time buyers and homeowners struggling with affordability.
Jamie Alexander from Alexander Southwell Mortgages said: "Halifax is one of the biggest lenders in the country and when they move, others tend to follow." Industry experts are calling it a "positive signal" that could make August a better month for borrowers than expected.
