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Halifax reduces the cost of home loans

20 May 2005

Halifax has also announced that it is cutting its fixed rate mortgages for the second time in two weeks.

Moneyfacts found that the best fixed rate loan currently available is the one from Newcastle Building Society at 4.49 per cent.

A new survey from Moneyfacts has found that lenders are rushing to reduce fixed mortgage rates in anticipation of a drop in interest rates.

A number of lenders have slashed their rates following the recent fall in Swap rates - the rates at which City institutions lend money between themselves.

The financial information group says that these fixed rate cuts means the difference between these loans and variable ones has now become almost non-existent.

"Currently, market sentiment is leaning towards an anticipated reduction in the Bank of England rate with some economists suggesting a possible reduction as large as 0.50 per cent," remarked the head of mortgages at Moneyfacts, Darren Cook.

This speculation of BoE reductions has led Chelsea Building Society, Universal Building Society and West Bromwich Building Society to all reduce their fixed rate mortgages this week.

The cuts vary between 0.2 per cent and 0.25 per cent each.