More rate cuts from the Halifax

15 August 2008

Interest rates dropping because of “recent cut in swap rates”

The Halifax, one of the UK’s largest mortgage providers, has announced that they will again be cutting interest rates.

Borrowers that can hand over a deposit of at least 25% of the property’s value will see cuts of 0.25% on three of the lender’s most popular fixed or tracker-rate products.

These rate cuts will apply to deals organised through mortgage brokers.

In recent weeks many of the other large mortgage lenders have also made a series of small reductions to their mortgage rates taking headline prices down to 6% or less.

A spokeswoman for the Halifax said: “We are simply passing on the recent cut in swap rates [the price of borrowing between banks].”

This past week has also seen other lenders, including Newcastle building society, Yorkshire building society and Northern Rock, reducing the cost of some of their mortgage deals.

Ray Boulger of mortgage brokers John Charcol said: “Most lenders have been cutting selective rates rather than everything.”

“More lenders will come in with cheaper fixed rates in the next week or so,” he forecasted.

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