Halifax in mortgage rate cuts

HalifaxA major mortgage provider has ramped up competition by announcing rate cuts of up to 0.45% on selected two-year deals across its range.

The new rates launched by Halifax include a two-year deal for first-time buyers with a 10% deposit which is now available with a fixed rate of 4.59% with no fee and £500 cashback provided on a Mastercard cash card when the deal is completed.

A remortgage deal is also available for borrowers with a 15% deposit with a two-year fixed rate of 3.59% and a £995 fee.

Halifax is part of Lloyds Banking Group, which is on track to meet a commitment to lend £6.5 billion to 60,000 first-time buyers in 2013.

Financial information website Moneyfacts also highlighted a two-year fixed-rate deal from Halifax at 3.99% for borrowers with a 15% deposit, with no arrangement fee and an incentive package as offering a "decent rate".

Government schemes such as Funding for Lending have helped to reinvigorate the mortgage market and a price war has broken out in recent months, with lenders across the market slashing their rates.

This has prompted a sharp upturn in activity in the housing market, with lenders and surveyors reporting the strongest signs of a pick-up in recent months since the market crash.

Rachel Springall, spokeswoman for Moneyfacts, said the drop in rates across the mortgage market recently is not yet showing signs of "bottoming out".

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The people who affect house prices

The people who affect house prices