Halifax joins three big lenders in cutting mortgage rates

Halifax has reduced its five-year fixed-rate deals by up to 0.71%, and two-year fixed-rate loans will fall by as much as 0.27%. First Direct also cut its terms and both lenders confirmed the cheaper deals are on offer from tomorrow. NatWest also announced reductions on fixed rate deals by up to 0.65% on both two and five-year fixed rates. Aaron Strutt, from mortgage broker Trinity Financial, said: ‘Lenders are starting to realise the market is slowing down, and they need to attract more borrowers. More of the larger banks and building societies are lowering their rates, which is good news given the scale of rate increases we have seen in recent months.’ Last week the Bank of England raised the base rate for the 14th consecutive month from 5% to 5.25%. While inflation has slowed, at 7.9% it remains nearly four times higher than the Bank’s 2% target. However, several major mortgage lenders have been cutting rates, amid signs that stubbornly high inflation is easing.