Halifax and Nationwide Cut Mortgage Rates as Price Wars Rage on

Mortgage lenders Halifax and Nationwide both cut prices for a variety of fixed rate home loans as lenders continue to compete to enlarge their customer base.

The first moves came from Halifax, who dropped rates on their two year fixes, available with 80% LTV and 90% LTV, each by 0.3%.

The 80% LTV two year fix is now available with an interest rate of 3.44%, and the 90% LTV two year fix comes with 3.99% interest. Fees differ for the two products, with the first requiring customers to pay £1,499 up front, and the second costing £999.

Halifax also dropped the rate on their 85-90% LTV mortgage available for first-time buyers moving in to new build properties to 3.79%.

They have also now begun offering £750 cash back to those who switch to them from another mortgage lender. The cash is to be used to pay for conveyance and completion fees.

The day after Halifax dropped their rates, Nationwide followed suit, cutting interest on a draft of different fixed rate mortgages.

Customers opting for a ten year fix can now do so with interest set at just 2.99%.

And those who can afford to pay a 40% deposit up front, and a £999 fee can fix their mortgage interest at just 2.19% for a five year period.

Nationwide’s two year fixed rate home loan is now available to customers with an LTV of 95% and interest payable at 3.89%. This deal has the same fee as the five year fix.

In a bid to match Halifax’s cash back offer, Nationwide are offering free mortgage valuations, as well as offering £500 cash back to first time buyers and, for those with a Nationwide Flex current account, a further £250 cash back when they sign up to a mortgage deal.

Both Nationwide and Halifax though, have had their two year fix interest offers beaten by HSBC who, earlier this week, announced that they will be offering a home loan with interest of only 0.99%, although the fee of £14,999 is relatively high, and customers must pay a minimum deposit of 35% of the property’s value.