FOLLOWING Nationwide last week, which cut mortgage rates to as low as 3.5%, brokers have welcomed further cuts today from two other major lenders, Virgin Money and the Halifax. They said the changes highlight that lenders are favouring buyers over those remortgaging in a bid to get the market moving after a quiet fourth quarter of 2025 due to the Budget.
Virgin Money highlights include reductions on 2-year fixed rate purchase mortgages with a £999 fee of up to 0.24%, starting from 3.79% — and a 2-year fixed rate fee-savers purchase mortgage that will be reduced by up to 0.21%, starting from 3.98%.
Highlights from the Halifax are reductions of up to 0.11% on 5-year fixed rates for homemovers and first-time buyers.
The cuts come ahead of this week’s crucial jobs and inflation data, which brokers have flagged as being key to the direction of rates in the days and weeks ahead.
Lenders favouring buyers
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said: “These rate cuts definitely show that High Street lenders are favouring buyers over those remortgaging with their better deals.
“It’s important to support the property market, but with around 1.8m borrowers looking for a new mortgage deal in 2026, many are struggling to find the best deals and may feel a little frustrated.
“Virgin Money has cut its rates by up to 0.24% to bring its range in line with the majority of its High Street competitors’ pricing. Let’s hope those looking for a remortgage see some of the lender love soon, too.”
Mark O’Connor, Mortgage Advisor at Online Mortgage Advisor, said last month’s rate cut by the Bank of England is starting to feed through: “Cutting rates for homemovers and first-time buyers can only have a positive impact on the housing market, and all of this follows the reduction in the base rate from the Bank of England last month.
“And with the base rate now at levels seen in early 2023, I would expect the rate-cutting trend to continue. This is great news for people looking to move or purchase for the first time in 2026.”
Good news amid the gloom
Michelle Lawson, Director at Fareham-based Lawson Financial, also welcomed the news.
She said: “Seeing lenders shave their rates is always a boost to borrowers and some good news amid the geopolitical doom and gloom.
“If things escalate further on the world stage we may see some jitters with rates, so act now to secure something and a good broker will monitor the rates to make sure borrowers get the best deal they can.”
Dariusz Karpowicz, Director at Doncaster-based Albion Financial Advice, was enthused: “Buyers, your moment has arrived. Halifax and Virgin Money are trimming rates again, with cuts up to 0.24% on purchase deals. First-time buyers and homemovers are clearly the favourites right now as lenders compete for your business.
“The High Street is backing buyers over those remortgaging, which is great if you are purchasing but a bit frustrating for the 1.8 million borrowers hunting for a new deal.
“With global uncertainty still lurking, rates could wobble either way. Lock in now while the going is good, and a decent broker will keep an eye on things to make sure you are not missing out if rates drop further.”
Market share is key
David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth, added: “Rate cuts are always welcome, and these latest deals from Halifax and Virgin Money reinforce a clear theme for 2026, that lenders are targeting new business from first-time buyers and homemovers.
“With house prices stabilising and buyer demand holding firm, banks are focused on growing market share, pricing purchase mortgages more keenly to win new applications.
“Purchases typically mean larger loan sizes, longer customer relationships and greater cross-selling opportunities, so it’s little surprise the most competitive rates are being reserved for those actively buying.
“In short, lenders are clearly prepared to sacrifice their margins today to secure the next generation of borrowers.”
Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, warned borrowers that lots could change by the end of the week.
She said: “Wage growth and inflation data being published on Tuesday and Wednesday could send mortgage rates in either direction later this week.
“If both play ball and continue to edge down, rates could drop further, but if they nudge up, rates could head north again. It’s a massive week for mortgages.”
