Halifax will cut selected residential rates by up to 19 basis points, making it the latest major lender to cut mortgage rates in recent weeks.
The building society says it will ease rates on selected first-time buyer and home mover product by up to 19bps.
Elsewhere, Nationwide’s buy-to-let arm, The Mortgage Works, will also be introducing reductions on selected landlord products, with some offers starting from 3.69%.
The Mortgage Work reductions include:
New business
BTL two-year fixes (purchase and remortgage) at 3.69%, with a 3% fee, available up to 65% loan to value — down by 10bps
New business limited company
BTL two-year fixes (purchase and remortgage) at 4.99%, with a 3% fee, available up to 75% LTV – down by 30bps
BTL two-year fixed switchers at 6.49%, available up to 75% LTV — down by 30bps
The Mortgage Works Senior Manager, BTL mortgages Joe Avarne says: “Our products are some of the most competitive in the sector and, with rates now starting from 3.69%, these new deals will improve affordability and help widen market access for BTL investors”.
The reductions follow on from the likes of HSBC, Barclays and Coventry Building Society, who have all introduced new deals in anticipation of a rate change announcement by the Bank of England (BoE) next month.
Rates are cut by most lenders based on the stability of swap rates. These act as long-term predictions for where the BoE interest rate will go in the future.
From May 7 through to last week, swaps had held steady at 5.2% - the longest stable period since the benchmark was introduced in 1997 – but are now slowly increasing due to downward pricing by lenders.
Interest rates were held at 5.25 per cent last month by the BoE, with the next vote due in August, and many predict a reduction in the base rate amid falling inflation.
Ben Perks, Managing Director of Orchard Financial Advisers, said: “More lenders are joining the race to reduce rates. With an election this week, it could have been a turbulent time for rates. But products are improving for borrowers.
“Hopefully this will continue into August when a Bank of England base rate cut would provide borrowers with a much-needed confidence boost. The outlook for the second half of the year is much brighter.”
