Halifax becomes latest lender to launch sub-4% mortgage rate

Halifax has reduced rates across its residential mortgage range by up to 0.16%, introducing a sub-4% five-year fixed rate.

The five-year fix at 60% LTV has reduced to 3.99% and is available to both buyers and home movers with a £999 fee.

Elsewhere in the range, a five-year fix at 90% LTV is down by 16bps to 4.84%.

Two-year fixed rates now start from 4.36% at 60% LTV, 4.83% at 80% LTV and 5.24% at 90% LTV, all with a £999 fee.

The latest round of reductions bring Halifax in line with other lenders who have launched sub-4% rates this week, although it's 3.99% rate remains below the 3.83% offered by Barclays, HSBC's 3.95% rate, and NatWest's 3.97%.

A host of lenders have reduced mortgage rates after the Bank of England cut interest rates to 5% last Thursday, the first reduction since 2020.