Halifax has announced it is cutting rates on all of its mortgages for new customers by at least 0.30 per cent, until the end of next year.

Borrowers who apply for a Halifax mortgage between now and 3 October 2010 will get a reduction on their rate until the end of 2011, the lender has announced today.

Halifax current account customers will get an additional 0.20 per cent rate reduction, a total rate reduction of 0.50 per cent for more than 12 months.

In addition to cutting the cost of its mortgages, Halifax has also added a new two year tracker mortgage to its product range, available to homemovers and first time buyers. The deal will include a rate of 2.49 per cent until the end of 2011, followed by 2.79 per cent for a further year.

The tracker is available for up to 60 per cent loan to value, with a fee of £1,495; current account customers can access a rate of 2.29 per cent until the end of 2011, followed by a rate of 2.59 per cent after that.

Halifax has calculated that for a customer borrowing £150,000 with this mortgage, they would save around £450 between now and the end of 2011.

Commenting on the rate reductions, Stephen Noakes, commercial director of Halifax mortgages, said: “The Halifax Great Rate Cut sees us making significant reductions across our whole product range for homebuyers. We know that the first year in a new home can be expensive, so this rate cut should make a helpful difference for customers.”

© Fair Investment Company Ltd

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