Halifax and HSBC announce new mortgage rate cuts as property expert says 'peak rates are behind us'

Major UK lenders are announcing new mortgage deals with reduced rates, which is widening the choice for borrowers. Halifax, First Direct and HSBC are amongst the banks cutting their rates and are now offering a range of deals below the 5 percent mark.

Coupled with house prices gradually going down, there may now be more hope for homeowners as the property market appears to be experiencing a 'cooldown'. After months of interest rate rises causing mortgage costs to soar, the Bank of England base rate recently stalled after 14 rises in a row, with experts now saying 'peak rates are behind us'.

First Direct announced rate cuts of up to 0.40 percent from Tuesday, which it said is the most substantial round of mortgage rate drops it has made since February this year. Halifax also announced cuts to its mortgage rates by up to 0.46 percent from Wednesday, which includes cutting a five-year fix for borrowers with a 10 percent deposit by 0.24 percent to reach 4.97 percent.

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The lending giant will also be reducing its five-year fix for borrowers with a 40 percent deposit by 0.20 percent to 4.53 percent. Both Halifax deals have a £999 fee.

HSBC UK is also expected to make widespread reductions to its mortgage rates on Wednesday, according to PA, but the details have not yet been announced.

First Direct is now offering a rate as low as 4.74 percent for new and existing customers looking for a five-year fixed-rate deal, with a 40% deposit. It has also launched two new mortgages for borrowers with a 5 percent deposit.

Liam O’Hara, head of mortgages at