Halifax Cuts Rates As Asking Prices Come Down
Following cuts by Nationwide, Abbey and Cheltenham & Gloucester, Britain’s biggest mortgage lender, Halifax, has cut some of its mortgage rates. Meanwhile, the average asking price for houses has come down.
Following Nationwide Building Society’s cut in mortgage rates last week, right at the end of the week Halifax, Britain’s biggest mortgage lender, also cut its rates.
The mortgage giant is to reduce its two-year fixed rate by 0.1%, and the five-year fixed rates will come down by 0.15%. In addition Bank of Scotland’s buy-to-let mortgages rates are coming down and HBOS’s subsidiary BM Solutions will see its rates cut by up to 0.2%.
Nevertheless, on the back of many rises throughout 2008 so far, Halifax’s rates are nowhere near the best on the market. The two-year fixed rate is 6.47% for buyers with a 25% deposit, and there’s a large £1,330 arrangement fee. In comparison, Nationwide’s best two-year fixed deal is at 6.18%, with a fee of £599. Market Harborough Building Society has two-year fixed rate of 5.99% and a £749 fee.
According to Halifax it was making the move to maintain pricing in line with other High Street lenders such as Nationwide as mentioned, plus Cheltenham & Gloucester and Abbey, who have also cut rates recently. Halifax’s new rates came into effect on Saturday 19 July.
Halifax gained criticism recently when it increased the cost of its mortgages by introducing a £245 ‘entry fee’. On top of the mortgage arrangement fee, this mortgage administration fee supposedly covers setting up and exiting a mortgage, plus routine maintenance.
Meanwhile the average asking price for a home has fallen by £18,000 in some cases the few weeks since May, according to property website Rightmove. The average fall across England and Wales has been £7,281, but in the South East asking prices have dropped by £17,829 to an average of £298,692. The fall across the board means that asking prices are 2% lower than a year ago – the first time Rightmove has seen an annual fall since it began recording data six years ago.
