Halifax has just announced the eighth cut in their mortgage rates this year, with almost half of their mortgage products having their interest rates reduced by up to 0.15 percent.
A typical example is the Halifax 5 year fixed rate mortgage which comes down from a 6.49 percent interest rate to 6.34 percent. The Halifax has also cut fees on some of its products, with the recently introduced stepped tracker mortgage having GBP200 cut off the fee.
The mortgage market is seeing all manner of fluctuations right now, with the base rate and general economic climate leading mortgage providers to look at different ways to get customers on board. The Halifax is doing what it can by cutting rates and fees where they can and are hopeful that demand will increase on the back of them.
Good news for home buyers comes from the HSBC which is cutting both interest rates and fees on some of their fixed rate mortgage products.
The popular 2 year fixed rate mortgages offered by HSBC are to have their rates reduced by 0.31 percent, with an additional GBP200 taken off the admin fee. This takes it down to just GBP599. Some of the longer term fixed rate mortgages will also be reduced, with cuts of 0.16 percent.
As well as existing deals the HSBC mortgage department also has a new product to offer. A 5 year fixed rate mortgage with an interest rate of 5.98 percent is to be made available to any customers who have an HSBC Premier or Plus account. This new mortgage does have an arrangement fee of GBP999 with it.
The regular Halifax house price report has shown that, in the year to June, property prices have fallen by 6.1 percent.
The forecast by the Halifax for the rest of the year is a fall over the 12 month period of around 9 percent. At the moment property prices are at similar levels to August 2006 though further drops will take values to earlier dates than that.
The chief economist from the Halifax felt that the current situation, with strong employment meant that the future could be alright for property prices, though were a recession to hit the UK this could very quickly change.
