Halifax and BM Solutions lower mortgage rates from tomorrow: "Lenders are firmly back in competition mode"

BOTH Halifax and BM Solutions have announced cuts to their purchase products from tomorrow as experts said “lenders are firmly back in competition mode”.

Halifax said it is making reductions of 0.16% across its range on Friday, while BM Solutions announced purchase reductions of up to 0.10% and remortgage reductions of up to 0.12%.

This comes as Barclays also announced rate cuts, following HSBC earlier this week.

Only this morning, the Halifax said that affordability is better than it has been for a decade due to slowing house prices and rates edging down will further help oil the wheels of the mortgage and property market.

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said these are more improved rates for borrowers.

He added: "It's good to see improved rates for both Home and Buy-to-Let buyers from both brands of the Lloyds Banking group - but it's just a shame that those looking to refinance or switch products won't see the benefit just yet. 

“Lenders are clearly looking to incentivise buyers to make the property market busier at this important time of year, but let's not forget the rest of the mortgage borrowers looking to secure cheaper rates than two years ago, or those who locked into cheap borrowing in 2021.”

Riz Malik, Director at Southend-on-Sea-based R3 Wealth, said lenders are positioning themselves for more business.

He continued: “This is further evidence that lenders are keen for business and want to lend. All we need is the housing market to thaw following its budget hiatus and the UK can get moving again.”

Imran Hussain, Director at Nottingham-based Harmony Financial Services, said he wants lenders to do more.

He added: "It’s encouraging to see the nation’s biggest lender start 2026 with rate reductions on purchase products, offering a welcome boost to the housing market for those looking to move or get on to the ladder. 

“However, it would also be positive to see similar reductions applied to remortgage products, particularly for borrowers who locked into higher rates a few years ago and are yet to benefit from falling rates.”

Babek Ismayil, CEO at homebuying platform OneDome, said lenders are “back in competition mode”.

He continued: “These rate cuts from Halifax, BM Solutions, Barclays and HSBC show lenders are firmly back in competition mode and keen to stimulate activity on the purchase side. With affordability already improving as house prices soften, even modest rate reductions can make a real difference to monthly payments and buyer confidence.

“However, the focus on purchase products also highlights a clear imbalance. Buyers are starting to benefit, while many homeowners looking to remortgage or switch deals are still waiting to feel the impact of falling rates.

“If the market continues to thaw after the Budget pause, we should see momentum build, but sustained reductions across both purchase and remortgage products will be key to unlocking demand and getting the whole market moving again.”
 

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