Halifax and Virgin Money among first lenders to make reductions
High street banks have cut mortgage rates amid claims by Bank of England Governor Andrew Bailey that homeowners are being overcharged by lenders.
Halifax and Virgin Money were among the first banks to announce mortgage rate reductions on Friday, despite the Bank of England announcing the largest rise in interest rates in 33 years the previous day.
More than half a dozen lenders have reduced rates on fixed-rate deals since the central bank’s announcement, according to analyst Moneyfacts. After the decision Mr Bailey rebuked lenders for pricing mortgages too high.
Halifax, one of the biggest lenders in the country, confirmed it would reduce several remortgage rates by up to 0.24 percentage points from next week. The reduction has pushed some rates with the lender below the 6pc threshold. A two-year fix with a 40pc deposit and £999 fee will be priced at 5.78pc from Monday, down from 6.02pc currently.