Rate cuts from major banks signal intensifying battle for borrowers at start of 2026
Mortgage lending giant Halifax is set to reduce pricing across parts of its mortgage range, effective from Friday, Jan. 9, as lenders continue to adjust rates in response to stronger competition at the start of the year.
The bank will cut rates for homemovers and first-time buyers, with reductions of up to 16 basis points across selected products.
According to Halifax, its intermediary product search system, Halifax Intermediaries Online and sourcing platforms will all reflect the revised pricing by tomorrow. Intermediaries wishing to secure current product codes have been advised to submit full applications by 8pm today.
For Aaron Strutt, communications director at mortgage and protection broker Trinity Financial, the move reflects a wider trend of early-year repricing by the high street banks. “Halifax is lowering its rates now that two of its main competitors have made pricing improvements,” he said.
“All these price cuts so early in the year are good news for borrowers, especially those keen to get on the property ladder or remortgage.”
Barclays also confirmed this morning that it is cutting rates, with reductions across selected purchase, remortgage and Reward products. Earlier in the week, HSBC made a series of reductions to a broad selection of its mortgage range, affecting both residential and buy-to-let products.
“With UK Finance predicting 10,000 fewer property transactions in 2026 compared to 2025 and 1.8 million borrowers coming to the end of their fixed rates, competition between the lenders to issue more mortgages is likely to be even stronger this year,” Strutt said.
“We can expect to see some more criteria easing and hopefully even cheaper fixed rates.”
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