Halifax cuts home loan rates again

Britain's biggest mortgage lender has announced that it was cutting its mortgage rates for the third time this month.

Halifax is reducing the cost of a number of its fixed-rate products by up to 0.3%, while rates on some tracker deals are coming down by 0.1%.

A flurry of lenders have slashed their rates in recent days following a fall in swap rates, upon which fixed-rate mortgages are based. Major players including Nationwide, Abbey, Cheltenham & Gloucester and Barclays' lending arm The Woolwich have all reduced the cost of their deals.

The move has prompted speculation that the trend for lenders to hike their rates as a result of the problems caused by the credit crunch may have peaked.

Halifax is reducing a total of 16 of its mortgage rates, with the biggest 0.3% cut benefiting customers borrowing more than £500,000 through a fixed- rate loan.

In its core range, it is cutting the cost of three- and five-year fixes by between 0.1% and 0.18%, to give a new three-year fixed rate of 6.24% for someone with at least a 25% deposit who paid a £1,499 arrangement fee.

The group has also launched a new 10-year fixed-rate deal at 6.29%, and a number of mortgages for people borrowing more than £500,000.

Bank of Scotland, which is also part of the HBOS group, is reducing 29 of its products by up to 0.45%.

Newcastle Building Society also launched three new fixed rate deals today for terms of three, five and 10 years. The three-year fixed rate loan charges interest of 6.05%, with the two other deals having rates of 5.95%.

Borrowers need a deposit of at least 25% to qualify for the mortgages, which come with fees ranging from £1,098 to £1,498.

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