HSBC and Halifax cut mortgage rates as price war continues

Two more major lenders have cut mortgage rates, prompting hopes that deals could seen come close to 3%.

HSBC and Halifax have both announced mortgage rate reductions today.

This includes a five-year fixed rate mortgage at 4.53% with a £999 fee up to 60% loan-to-value.

Ashley Thomas, director at London-based broker, Magni Finance, told the Newspage agency: “Lenders are getting more aggressive with rate cuts. I wouldn't be surprised to see rates drop below 4% by the end of the year. The next inflation data will be crucial for mortgage lenders, and expect a lot of rates to reduce if inflation has dropped significantly.”

Lewis Shaw, director at Mansfield-based independent mortgage broker, Shaw Financial Services, added: “Halifax stepping into the fray once again and dropping rates close to the 4.5% mark will certainly put the cat amongst the pigeons. Hopefully, this adds some momentum to the market and will trigger other lenders to sharpen their pencils or risk losing out.”

It comes as Moneyfacts said mortgage choice is improving for buyers.

Data from Moneyfacts shows the number of deals at 95% loan-to-value (LTV) has risen to its highest point of 254 since before the mini-Budget of September 2022.

The number of options at 90% LTV also rose month-on-month and stands at its highest count since February 2022 at 709.

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HSBC and Halifax cut mortgage rates as price war continues