Brokers say rate reductions indicate stability and confidence slowly returning to the market
Halifax has announced that it is reducing rates on selected two- and five-year fixed rate products, effective from Tuesday, November 7.
In an email sent to brokers on Monday, the high street lender said rates will be slashed on selected fixed rates across its homebuyer ranges, including first-time buyer, new build, large loans and affordable housing – shared equity / shared ownership, and the equivalent green home products.
Remortgage products, including large loans, affordable housing – shared equity / shared ownership, and the equivalent green home products will also have their rates reduced on selected fixed deals.
Highlights include a two-year fixed rate purchase mortgage of 5.14% up to 60% loan-to-value (LTV) with a £999 fee. A fee-free two-year fix at the same LTV is priced at 5.40%.
The full details of all rates, reflecting the latest rate cuts from Halifax, can be found on the lender’s online product guide.
Meanwhile, brokers have welcomed another set of rate reductions from Halifax.
“Seeing rate reductions being announced by the UK’s largest mortgage lender is a great way to start the working week especially knowing it will lead to a spate of further reductions from their competitors by the end of the week,” commented Stephen Perkins, managing director at Yellow Brick Mortgages, awardee for The Best Mortgage Companies to Work for in the UK. “Consumer confidence is starting to return to the market and will be buoyed by these Halifax rate reductions.”
Graham Cox, founder at Self-Employed Mortgage Broker SEMH, agreed, saying that the new rate cuts from the UK’s largest mortgage lender are a further sign of stability and confidence returning.
“With two-year fixes at 5.23%, albeit with a 25% deposit and a £999 product fee, sub-5% deals may not be too far away,” he pointed out. “Once all rates start with a four, not just longer fixes, we should see a pick-up in market activity.”
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