According to The Times, the UK's two biggest mortgage lenders, Halifax and Abbey, have entered a price war with each other to attract new mortgage customers, marking the first instance where the two lenders have aggressively gone to war for new borrowers.
David Doulton, director at Fairinvestment.co.uk, says that the move from Abbey and Halifax is a promising sign for the stalled housing market.
"This is great news from our two biggest lenders for those homeowners who have enough equity or a big enough deposit to be eligible for these deals." he said.
"Times are tough for British households, and mortgage lenders are in a position to ease the current conditions in the mortgage and property market. It is good to see that they are taking their responsibility seriously and helping to bring rates down. Hopefully more lenders will follow suit."
