The price war among home loans firms continues to hot up.
Halifax, the UK's second-largest mortgage lender, has cut the cost of many of its tracker and fixed rate products by an average of 25 percent, the BBC reports.
The new discounted deals, open to people who can pay a deposit of 25 percent of their property's value, signal a further stage in the "price war" which has recently broken out between mortgage providers.
Other firms which have reduced rates recently include HSBC, Northern Rock and Nationwide. Additionally, a wider range of home loans is beginning to appear from other building societies, including the Bristol & West and the Woolwich.
Crucially, these new products are offering more flexible rates for people willing to put up large deposits. For example, the Coventry and the Britannia are both cutting their prices for customers who put up 50 percent or more of their home's value up front.
These moves provide a welcome reverse for Britain's mortgage holders, who have been hit by months of tightening lending and deposit requirements from firms due to the credit crunch.
Commenting to the BBC, Ray Boulger at mortgage brokers John Charcol suggested that these rate cuts could look more comprehensive than was actually the case, however. "Most lenders have been cutting selective rates rather than everything," he said.
Nevertheless, the industry expert also claimed that the market was set to become more competitive in the near future. "More lenders will come in with cheaper fixed rates in the next week or so," he added.
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