Halifax has turn into the newest lender to chop mortgage charges this week after it introduced reductions of as much as 0.71 proportion factors.

HSBC, Nationwide and TSB have additionally lower charges on some merchandise, regardless of the Bank of England's choice final week to hike interest rates for the 14th time in a row.

Halifax's new offers, on account of be launched on Friday, embrace the provide of a five-year fastened charge of 5.28%, a 0.71 proportion level drop.

Two-year fixed-rate loans will fall by as a lot as 0.27 proportion factors.

The rush to slash charges comes amid a slowdown within the housing market, with specialists warning that stretched affordability for mortgages is hitting demand.

Nationwide reported the biggest drop in annual house prices in 14 years on its index final week, after it discovered that property values declined 3.8% in July.

Separate figures by Halifax reported a 2.4% year-on-year fall in July.

Imogen Pattison, an assistant economist at Capital Economics, forecast that value drops would proceed within the coming months and should speed up subsequent yr.