Rate reductions announced by two mortgage lenders
January 12, 2025 by Alan
Rates
Two of the biggest mortgage lenders in the UK have announced they are reducing the rates across their fixed ranges, with advisors expecting further such cuts to come throughout the month.
The lenders in question are Leeds Building Society and Halifax and it will mark a welcome start to the year for borrowers – especially those seeking remortgage deals. Leeds Building Society has reduced the rates for its fixed remortgage product range by as much as 0.24% in some cases. Meanwhile Halifax is cutting the rates for its three-year and 18-month remortgage loans by a maximum of 0.35%.
That means the lowest available rates at Halifax are now 4.41% on three-year fixed deals and 4.22% on 18-month ones. The average rates across the market right now for people with good credit are between 4% and 5%. Therefore the rate cuts still keep them within that average price range.
Mortgage advisors have indicated that they think there will be more rate cuts announced over the course of the month. They are also expecting volumes of remortgage and purchase lending to go up, which would be the likely pattern if rates fall.
Justin Moy from EHF Mortgages told Mortgage Introducer that:
“The early moves by Halifax and Leeds Building Society suggest a mini rate war will rage at the start of January. With many borrowers seeking new mortgage deals in 2025, January is shaping up to be an ideal time to lock in favourable rates.”
Advisors who have the CeMAP qualification will be in demand throughout the month.
Written by
Alan
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