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In the midst of a rush of rate cuts, Halifax is launching a mortgage at 0.83 percent.

In the midst of a rush of rate cuts, Halifax is launching a mortgage at 0.83 percent.

With the unveiling of a two-year fixed-rate agreement at 0.83 percent, Halifax has launched the latest salvo in the price battle amongst mortgage providers.

The revelation of the ultra-low rate, which will be offered to anyone who want to borrow up to 60% of the value of their property through mortgage brokers starting Monday, comes amid a rush of rate cuts by some of the UK's top institutions.

HSBC and TSB also launched two-year mortgages at 0.94 percent last month, and Nationwide Building Society was the first to offer a five-year contract for less than 1%.

The Halifax mortgage has a £1,499 charge and is available for purchases between £250,000 and £1 million.

“Where the UK's largest mortgage lender goes, others will definitely follow,” said Rhys Schofield, managing director of broker Peak Mortgages and Protection.

“These headline grabbers typically come with large setup fees, and Halifax is probably the only high street lender still charging for a basic appraisal, which means that for many consumers, the best overall offer lies elsewhere,” he added.

It joins a growing number of borrowers with significant accounts who can get loans for less than 1%.

Halifax's rate, according to Lewis Shaw, founder of broker Shaw Financial Services, is "very low."

“In all the years I've been broking, I've never seen anything like this,” he remarked. “What this really tells us isn't that lenders desire a rate war; it's that they're as eager as mustard to get ultra low-risk business on their books, most likely to offset increasing loan-to-value lending.

Drop a mail to andy@harveybowes.com to get a quote for your home loan or check out the facebook pages of UK Smart Property, and Andy Coghlan Harvey Bowes.

#finance #uksmartproperty #AndyCoghlanHarveyBowes #debt #mortgage #mortgagebroker #debt #smartfinance #property #harveybowes #economy #housing #realestate

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