Mortgage rates slashed by major lenders kicking off 'mini New Year rates war'
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Several high street lenders have cut mortgage rates, kicking off a potential mortgage rate war for the new year. Leeds Building Society and Halifax have announced mortgage rate cuts on several of its products. For existing customers, Leeds Building Society has cut fixed residential interest rates by up to 0.24%, and selected Interest Only rates will drop by up to 0.15%.
New customers can also benefit, with Residential and Reach fixed rates decreasing by up to 0.21% and Interest Only rates by up to 0.15%. The reductions follow closely after Halifax, which lowered rates by up to 0.35% for those remortgaging in early 2025. Darryl Dhoffer, founder at The Mortgage Geezer, said the moves by the lenders could be the "catalyst" for many other lenders to follow suit.
Justin Moy, managing director at EHF Mortgages, told the news agency Newspage: "Early moves by Halifax and Leeds Building Society on New Year's Eve suggest a mini rate war will rage at the start of January, which can only be great news for borrowers. With huge numbers of borrowers looking for a new deal on their mortgage in 2025, it will be important to reserve deals whilst rates are favourable, and January will be an ideal time to take advantage. Other lenders will follow in the coming days without doubt.".
David Stirling, independent financial advisor at Mint Mortgages & Protection added: "Halifax follow closely on the heels of Leeds Building Society, as both look to start the eagerly anticipated 2025 mortgage rate race ahead. The New Year should see lots of competition between the lenders, as they try and take as much market share as possible before the April Stamp Duty changes, when things are likely to dampen in the mortgage world. This is great news for borrowers looking to buy or coming off fixed rates in the early part of the year, as rates could drop lower than they have been for while.".
