From Thursday 19th September, Halifax Intermediaries will reduce rates on its home mover and first-time buyer products.
Changes include Large Loans, New Build and Affordable Housing and Remortgage.
The lender has made reductions of up to 0.09% across the range.
Nicholas Mendez, mortgage technical manager at John Charcol, said: “Despite the rise in services inflation, which all but confirms the expected hold decision tomorrow, Halifax has reduced rates further on the eve of the MPC meeting.
“Recent changes in mortgage pricing have been driven by financial markets and lenders’ competitive nature, following a challenging period.
“For lenders to price competitively, market stability was necessary.
“This stability began to take shape after the general election announcement, the decline in inflation towards the 2% target, and the initial reduction in the bank rate, indicating a shift in MPC voting behaviour.
“Swap rates, which lenders use to hedge against interest rate changes, have fallen. Five-year swaps had already factored in future rate cuts, allowing lenders more flexibility in their pricing.
“As a result, five-year fixed-rate mortgages, particularly those with low loan-to-value (LTV) ratios, are often among the best buy options.
“ Additionally, swap rates for two-year money dropped below 4%, with market forecasts continuing to factor in further possible rate reductions.
“This stability in swap rates has boosted lenders’ confidence, enabling them to reduce mortgage pricing quickly and narrow margins to stay competitive without the risk of being caught out by sudden market shifts.
“ By promptly passing on these reductions, lenders like Halifax will continue to attract new business and outcompete rivals.”
