Halifax is reducing the cost of a number of its fixed-rate products by up to 0.3 per cent from tomorrow, while rates on some tracker deals are coming down by 0.1 per cent.

A flurry of lenders have slashed their rates in recent days following a fall in swap rates, upon which fixed-rate mortgages are based.

Major players including Nationwide, Abbey, Cheltenham & Gloucester and Barclays' lending arm The Woolwich have all reduced the cost of their deals.

The move has prompted speculation that the trend for lenders to hike their rates as a result of the problems caused by the credit crunch may have peaked.

Halifax is reducing a total of 16 of its mortgage rates, with the biggest 0.3 per cent cut benefiting customers borrowing more than £500,000 through a fixed-rate loan.

In its core range, it is cutting the cost of three and five year fixes by between 0.1 per cent and 0.18 per cent, to give a new three-year fixed rate of 6.24 per cent for someone with at least a 25 per cent deposit who paid a £1,499 arrangement fee.

The group has also launched a new 10-year fixed-rate deal at 6.29 per cent, and a number of mortgages for people borrowing more than £500,000.

Bank of Scotland, which is also part of the HBOS group, is reducing 29 of its products by up to 0.45 per cent.