Halifax reduce mortgage rates for existing customers

Halifax have announced that they will reduce interest rates for existing customers by an average of 0.15 per cent with effect from the 21st May. Interest rates on the three and five year fixed rates with a £1,499 fee will reduce by 0.20 per cent, with the three year tracker products also reducing by a similar amount.

Nathan Wallis, media relations officer for HBoS Mortgages, said: "Our price reductions, for existing customers only, are on both our intermediary and branch based ranges. These price reductions reflect a recent, modest, reduction in the still very high cost of Libor related funding”

Halifax were one of the first lenders to allow mortgage brokers to access their systems in such a way as to be able to arrange product transfers and further advances for existing Halifax customers. The advantage offered by this system has been welcomed by those who value the guidance of a broker in preference to a lenders call centre.

The HBoS announcement follows a similar announcement by the Abbey last week and now means that the two lenders with the greatest market share have decided to cut rates. In conjunction with the return of First Direct to the market, this is the strongest indication yet that the start of the recovery may not be too far away.