Halifax has cut the rate on its Help to Buy Isa from 4% to 2.5% for new customers, relinquishing its position as the best in the market.
The change doesn’t affect existing customers, who will continue to earn 4% interest, plus the standard 25% bonus when completing on a mortgage.
Halifax’s rate cut means Santander’s Help to Buy Isa stands alone as the best in the market. Last month it boosted its rate to 4%, having previously offered 1.5% to new customers and 2% to existing customers.
A Halifax spokesperson says: “As the brand to offer a significantly higher rate of interest than its competitors when Help to Buy ISA launched in December 2015, we have seen unprecedented demand. This change maintains the rate for existing customers, and keeps Halifax within the top three rates when compared to its main competitors.”