Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage
Halifax will make interest rate cuts of up to 0.35 per cent from tomorrow, while Leeds Building Society will reduce its rates by up to 0.24 per cent.
On a £200,000 mortgage that would equate to £1,065 a month for five years, based on a 25 year repayment term.
> The first-time buyer’s step-by-step guide – what you need to know
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‘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.’
How to find a new mortgage
Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible.
Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone.
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Looking for a new mortgage? Check out the best rates here
Mortgage brokers welcomed both Halifax and Leeds Building Society’s cuts, and said the moves could act as a catalyst for further rate reductions in January.
What if I need to remortgage?
Most households with a good credit record can secure a mortgage rate of between 4 and 5 per cent at the moment.
Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people’s borrowing ability and buying power.
The lowest fixed rate deals remain just above 4 per cent, with five-year fixes slightly cheaper than more popular two-year deals.
At present, a household with at least 40 per cent equity built up in their home can secure remortgage rates as low as 4.08 per cent when fixing for five years.
Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it.
Quick mortgage finder links with This is Money’s partner L&C
Borrowers should compare rates, speak to a mortgage broker and be prepared to act.
> Find the right mortgage for you
This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice.
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