Major high street lenders kick off 2025 by slashing mortgage rates
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TWO top mortgage lenders have kick-started the New Year by cutting rates as experts say there could be more price falls to follow. Halifax has chopped rates for remortgages by up to 0.35% while deals for new borrowers have fallen by up to 0.15%. The lender offers home movers a two-year fixed rate starting from 4.49% for someone with a deposit of 40% or rates are as low as 4.23% if you want to fix for five years.
![[Two lenders have cut mortgage rates and more could follow]](https://www.thesun.co.uk/wp-content/uploads/2022/11/NINTCHDBPICT000775411902-1.jpg?strip=all&w=960)
At the same time, Leeds Building Society trimmed rates by 0.21% this week. Rates now start from 4.53% or 4.25% on five-year fixes. And there could be further reductions to come, according to experts, especially if the Bank of England base rate continues to come down.
Rachel Springall, from comparison site Moneyfactscompare.co.uk, said: "Mortgage holders will be hoping that the Bank of England base rate will fall further in 2025, and if swap rates calm, this can lead to lower fixed mortgage rates. "Cuts to the base rate may also delight borrowers who are stuck on a variable rate deal or are soon to come off their low-rate fixed deal, indeed there are estimated to be millions of borrowers due to refinancing in 2025.".
There could be some other key changes with five-year fixes becoming cheaper than two-year deals, according to Nicholas Mendes, mortgage technical manager at broker John Charcol. He said: "Currently two-year fixed rates are about 0.15% higher than five-year fixes but I expect this to be reversed in 2025, with two-year fixes becoming the cheaper product.
