Halifax’s latest rate cuts, set to come into effect on December 9, see it make cuts of up to 1.01 percentage points. It is now offering a five-year fixed rate of 4.5 per cent.
The cuts arrive as Virgin Money launches a new five-year fixed rate at 4.64 per cent.
While Virgin’s new deal is for borrowers with a 15 per cent deposit or more, Halifax’s 4.5 per cent rate requires borrowers to have saved up a 40 per cent deposit.
Average two-year fixed mortgage rates currently sit at 5.84 per cent, while average five-year fixed mortgage deals sit at 5.67 per cent, according to Moneyfacts.
Virgin’s changes, which also came into effect today, saw existing residential five and 10-year fixed rates reduced by up to 0.31 per cent, while buy-to-let five-year fixed rates were cut by more than double this amount (0.71 per cent).
Meanwhile, Nationwide has reduced selected fixed rates for new and existing borrowers across its two, three and five-year products by up to 0.30 percentage points.
'Mortgage rates could fall further'
The cuts precursor another Bank of England rate rise next week, which is expected to be 0.5 percentage points, taking the base rate to 3.5 per cent.
Experts have said the next base rate rise, much like the last, is likely already priced in following the market chaos which ensued in October after former prime minister Liz Truss’ explosive ‘mini’ Budget.
“For those looking for a fixed rate mortgage, if we get the 0.5 percentage point rise the market is expecting, there’s every chance that it has already been priced into the market,” said Sarah Coles, senior personal finance analyst at Hargreaves Lansdown.
“So instead of encouraging rate hikes, those fixed rate deals are likely to continue on their current downwards trajectory.”
