Mortgage Lenders Cut Rates to Start the Year

Halifax’s recent rate cuts include an up to 0.83% reduction on the interest of a two-year fixed deal, aimed at easing the financial burden for homeowners. HSBC is anticipated to follow suit with its own cuts, specifically on two-year fixed rates for remortgages, dropping below 4.5% for the first time since early June the previous year.

The backdrop for these reductions is the impending expiration of fixed-rate deals for 1.6 million homeowners within the next year. While the average rate on a two-year fixed mortgage has seen a slight drop to 5.93%, experts caution that borrowers should thoroughly assess the offered products, as not all may see uniform rate reductions. The competitive market landscape is expected to prompt further rate adjustments from various lenders.