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SELL YOUR HOME QUICKLYHalifax enforces new rates today
Halifax will today cut its mortgages, “Hotproperty” reported yesterday. The reduction comes in response to a slight improvement in Libor lending rates. Halifax is not the first UK lender to reduce its rates in response to this decrease: Last week, Abbey and Nationwide, too, lowered their rates, according to Hotproperty.co.uk.
According to Halifax spokespeople, this reduction will benefit existing borrowers, who are likely to benefit from new 3- and 5-year fixed rate deals. Speaking to Hotproperty.co.uk, an HBOS spokesman explained that, “[the] price reductions reflect a recent, modest reduction in the still very high cost of Libor related funding.”
The Bank of England, states “Hotproperty”, established a special liquidity programme late last month, in the hopes of reducing the Libor rate. The introduction of this scheme would potentially increase confidence in financial markets and improve liquidity.
Yet, if you want to sell your home quickly, it may take some time for you to truly benefit from these reductions. Housing prices are expected to stabilise only in 2009, and across the board, lending conditions remain exceptionally tight. Would-be first-time property buyers have little hope of qualifying for mortgages, whilst owners wishing to sell are struggling to find able buyers. When they do, they’re often forced to sell for far less than their properties are worth.