Boost for borrowers as mortgage rates cut

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The mortgage price war has stepped up a gear as lenders announced a flurry of new rate cuts to home loans.

Britain’s biggest mortgage lender Halifax has chopped its five-year fixed rates by up to 0.31 per cent, as has its sister bank Lloyds. Leeds Building Society announced reductions of up to 0.4 per cent in its buy-to-let mortgage range.

The moves are the latest in a wave of sharpened-up prices announced in recent days as lenders including Metro Bank, Barclays, Nationwide Building Society, HSBC, Virgin Money, Skipton Building Society and Norwich and Peterborough Building Society jostle for business.

The latest rate reductions from Halifax come a week after its last round of rate cuts. Among Halifax’s new deals is a five-year mortgage for borrowers with a 20 to 25 per cent deposit with a rate of 3.98 per cent. The loan comes with a £995 fee. A similar deal is being offered by Lloyds.

Rachel Springall, spokeswoman for financial information website Moneyfacts, said: “Only a week since making its last rate reductions, Halifax has further improved its two and five-year fixed deals by reducing selected rates by up to 0.31 per cent.

“Borrowers who have a 20 per cent deposit and who are interested in these offerings would still be wise to shop around for deals elsewhere.

“In this competitive market lower rates can be found with lower fees as well as incentive packages to help with upfront costs, so they really do need to weigh up the deals based on true cost.”