In order to relieve pressure on some homeowners, Halifax plans to drastically lower rates on some of its fixed mortgage packages.
The largest mortgage lender in the UK will lower rates starting on Friday, with a five-year fixed term priced at 5.39% instead of 6.10%.
There have been rate reductions from other lenders like HSBC, Nationwide, and TSB.
Mortgage expenses have increased as a result of the Bank of England raising interest rates in an effort to rein in rising prices.
Halifax will lower rates on a variety of products, some of which are targeted at first-time buyers and modest reductions on two-year fixed terms.
Since the most recent data on inflation, which gauges the rate of price increases, was released this week, other major mortgage lenders have been cutting rates.
To “slow down”
“More of the larger banks and building societies are lowering their rates, which is good news especially given the scale of rate increases we have seen in recent months,” said Aaron Strutt of mortgage broker Trinity Financial.
In the upcoming weeks, it wouldn’t be surprising if more of them saw an increase in their prices, he continued.
“Lenders are beginning to recognise that the market is slowing and that they must raise their prices to entice more borrowers.”
However, Bank of England Governor Andrew Bailey has stated that until there is “solid evidence” that price increases are decreasing, interest rates are not going to decrease.
For the first time, the Bank officially confirmed that interest rates will continue to rise.
Governor Jeremy
Lenders will be on the lookout for any changes in projections on the broader economic outlook as the sharper than anticipated decline in inflation in June has had a significant impact on rates.
The Royal Institution of Chartered Surveyors (RICS) released new research on Thursday that revealed customers were suffering greatly as a result of the rise in mortgage rates.
According to its poll, the biggest significant drops in UK home values since 2009 occurred in July.
The number of homeowners with mortgage arrears increased in the three months leading up to June, according to recent data.
81,900 homeowner mortgages were in arrears over the period, according to UK Finance, which represents the banking sector. This is a 7% increase from January to March and a 9% increase from the same period last year.
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