Halifax to cut mortgage rates for third time in a month » Housing » 24dash.com

Britain's biggest mortgage lender announced today 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% from tomorrow, 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.