Two of the UK's major high street lenders, Virgin Money and Halifax, have announced a fresh wave of mortgage rate reductions in a move designed to stimulate the property market.
Details of the Latest Rate Cuts
Virgin Money has implemented some of the most substantial cuts, with reductions of up to 0.24% on selected products. Key changes include a reduction on its 2-year fixed rate purchase mortgage with a £999 fee, now starting from 3.79%. Its 2-year fixed rate fee-saver purchase mortgage will see a cut of up to 0.21%, starting from 3.98%.
Meanwhile, Halifax has confirmed reductions of up to 0.11% on its 5-year fixed rate mortgages, specifically targeting homemovers and first-time buyers. These announcements follow a similar move from Nationwide Building Society last week, which cut its fixed rates by up to 0.20 percentage points, bringing its lowest rate to 3.50% for home movers.
Lenders Prioritise New Purchases Over Remortgages
The changes highlight a clear strategic shift among lenders, who are currently favouring new buyers over existing borrowers looking to remortgage. This is seen as a direct attempt to boost market activity after a subdued final quarter in 2025, influenced by the Budget.
Justin Moy, Managing Director at EHF Mortgages in Chelmsford, told Newspage: "These rate cuts definitely show that High Street lenders are favouring buyers over those remortgaging with their better deals." He added that while supporting the property market is crucial, the approximately 1.8 million borrowers seeking a new deal in 2026 may feel frustrated by the lack of competitive remortgage offers.
Market Awaits Crucial Economic Data
These rate adjustments arrive just ahead of pivotal UK jobs and inflation figures, which mortgage brokers have flagged as key indicators for the future direction of borrowing costs in the coming weeks. The timing suggests lenders are keen to attract business before any potential market shifts.
Moy concluded: "Virgin Money has cut its rates by up to 0.24% to bring its range in line with the majority of its High Street competitors' pricing. Let's hope those looking for a remortgage see some of the lender love soon, too." The new rates from Virgin Money and Halifax are effective immediately, following Nationwide's changes which took hold on Thursday, 15 January 2026.
