BROKERS have praised mortgage lenders for offering borrowers some “early Christmas rate-cut cheer” this morning.
The Halifax, following on from Nationwide and Virgin Money yesterday, has announced cuts of up to 0.2% on selected 3-year fixed rate mortgages for those looking to buy with less than a 10% deposit.
Ken James, Director at London-based Contractor Mortgage Services, welcomed the announcement.
He said: “We have some early Christmas rate-cut cheer as Halifax joins Nationwide and Virgin in reducing mortgage costs. With the dust settling on the Autumn Budget 2025, the mood of the UK mortgage market is shifting and, for borrowers, that could mean some early festive joy.
“After weeks of uncertainty, lenders are now rolling back mortgage rates, offering hope to homeowners and those looking to remortgage.
“Halifax has followed the lead of Nationwide and Virgin Money by trimming selected fixed-rate deals. This wave of cuts is being driven by a combination of subdued market reaction to the Budget and shifting expectations that the Bank of England could begin trimming its base rate soon.
“For many homeowners and prospective buyers, this feels like a Christmas gift especially coming when rates had been stubbornly high all year. In a housing market where every rate cut counts, these drops could make a meaningful difference in monthly repayments.”
Darryl Dhoffer, Founder at Bedford-based The Mortgage Geezer, said that while the Budget may have battered business owners, “borrowers appear to have come through relatively unscathed and the rate-cutting trend of recent weeks may continue”.
While welcoming the cuts on Black Friday, Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, believes the Halifax could have gone further: “Mortgage lenders don’t normally get involved with Black Friday, so it’s great to see that Halifax has inadvertently launched its version this morning.
“While it’s great to see rates fall for those with smaller deposits, it has the hallmarks of a sale where you can get up to 80% off but then find there are two items that are the wrong colour, size and XXXXXL.
“It would be good to have seen a few more options.”
Photo by Myriam Zilles on Unsplash
