HBOS cuts mortgage rates

Halifax – the UK's largest mortgage lender – has continued to cut interest rates on some of its most popular deals.

Following cuts last Friday, the lender confirmed today it was reducing rates on 16 deals, by up to 0.30 per cent.

The deals will come into effect tomorrow, Saturday July 25th.

Key among the changes is a 0.3 per cent cut in the cost of a two-year fixed-rate deal, which will see the cost fall from 6.99 per cent to 6.69 per cent.

A new Halifax ten-year fixed-rate deal is also being launched at a rate of 6.29 per cent.

However, it is unlikely these modest cuts will reverse the sharp decline in mortgage lending.

Figures released earlier this week by the Bank of England show mortgage lending is now at its quietist since the 1990s.

The Royal Bank of Scotland – which is owned by Halifax parent HBOS – is also cutting rates.

The lender, which specialises in larger loans, will cut rates on 29 of its deals by up to 0.45 per cent.

As an example, the two-year fixed-rate Bank of Scotland Large Loan will see a 0.45 per cent decrease – down from a rate of 7.09 per cent to 6.64 per cent.

Chris O'Toole