Halifax has announced changes to its product range. From  9 August for home movers and first time buyers, is will offer rate reductions of up to 0.16% on selected products.

The significance of this is that the lender is now offering a five-year fix for up to 60% LTV at 3.99%. Halifax is also offering a two-year fixed rate at 4.36% with a £999 fee up to 60% loan-to-value (LTV).

Commenting on the recent lender price war Coreco managing director Andrew Montlake said: “Lenders large and small are starting to shave rates every day now. This morning we had a new lender, April Mortgages, cut its rates and now we have a high street leviathan in the Halifax following suit. All of these cuts are really starting to drive demand and the prospects for the second half of the year look very promising.”

This week has seen HSBC, Natwest and Barclays all pitch in with sub-4% deals following Nationwide’s lead late last month.

On 7 August, HSBC undercut NatWest and Nationwide to launch what was initially the lowest rate on the market at 3.92%. Barclays then undercut all three of these lenders with a 3.83% rate.