Halifax and Lloyds Bank have reduced rates across a range of first-time buyer, home mover and remortgage products, with cuts of up to 12bps on home purchase deals and up to 14bps on selected remortgage products.

The changes apply across two-year, three-year and five-year fixed-rate products for first-time buyers and home movers, alongside selected two-year and three-year fixed-rate remortgage deals.

HOME PURCHASE PRODUCTS

Within the homebuyer and mover range, the largest reductions of 12bps have been applied to selected three-year and five-year fixed-rate products up to 90% loan-to-value (LTV).

Among the headline rates, Halifax and Lloyds are now offering a two-year fixed-rate mortgage at 5.02% up to 90% LTV with a £999 fee, reduced by 10bps.

A three-year fixed-rate product at up to 85% LTV with a £999 fee has been cut by 9bps to 4.84%, while a five-year fixed-rate deal up to 60% LTV with a £999 fee has been reduced by 10bps to 4.55%.

Fee-free products have also seen reductions. A five-year fixed-rate mortgage up to 60% LTV is now available at 4.67%, following a 10bps reduction.

REMORTGAGE PRODUCTS

Selected remortgage products have also been repriced, with the largest reduction of 14bps applied to a two-year fixed-rate remortgage product up to 75% LTV with a £1,999 fee, which now stands at 4.66%.

Elsewhere in the remortgage range, a two-year fixed-rate deal up to 60% LTV with a £1,999 fee has been reduced by 9bps to 4.61%.

Three-year fixed-rate remortgage products have also been cut by 11bps across both fee-free and fee-paying options. Rates now start from 4.77% for a product up to 60% LTV with a £999 fee.

The changes are available across Halifax and Lloyds Bank’s non-club Lloyds distribution channels.

POSITIVE STEP

Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, said: “Halifax’s latest rate reductions are another welcome sign that lenders remain committed to supporting borrowers, despite ongoing economic uncertainty.

“While the changes may appear modest, even small reductions can make a meaningful difference to affordability, particularly for first time buyers and homemovers facing higher property and living costs.

“Our latest research suggests many aspiring buyers may not have fully caught up with how much the mortgage market has evolved over the past year, with 50% unaware that borrowing power has improved in recent months and some potentially able to access up to £40,000 more than they could a year ago.

“Affordability assessments, lender flexibility and low-deposit options have all improved in many areas, yet some prospective buyers may still be judging their chances of homeownership based on outdated information.

“For those looking to remortgage, these rate reductions are another positive step and will be welcome news for borrowers approaching the end of a fixed deal. While market conditions can change quickly, recent weeks have seen a clear trend of lenders reviewing and reducing rates where possible.

“This makes getting expert mortgage advice more valuable than ever. With criteria, rates and product availability varying significantly between lenders, understanding the full range of options available can make a real difference to both affordability and long-term costs.”