Selected rates will be cut on Monday
Halifax has announced that it is reducing rates on selected fixed products by up to 36 basis points (bps), effective from Monday, October 2.
In an email sent to brokers on Thursday, the UK’s largest mortgage lender said rates will be slashed on selected two- and five-year fixed rate products 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 the two-, five-, and 10-year fixed rate deals.
Selected product transfer and further advance product rates will also be priced down.
Halifax also announced that all homebuyer and remortgage product end dates will be extended by one month.
Another major lender, Barclays, also announced rate reductions on Thursday, with cuts of up to 60bps.
“Barclays and Halifax have announced some significant rate reductions, with Halifax offering the lowest five-year fixed deal on the market,” Justin Moy, managing director at EHF Mortgages told news agency Newspage.
“With swap rates increasing in the background, borrowers may need to make quick decisions to secure rates in the coming days, and take advantage of the competition on the high street while they can.”
“With the largest UK lender, Halifax, now playing its hand for lower rates as September closes, these reductions, albeit welcome, do seem too cautious compared to other lender reductions we have seen recently,” Darryl Dhoffer of The Mortgage Expert observed.
“Halifax always pitches itself for the longer haul, so I expect these rates offered to be the norm as October progresses. We certainly should not get carried away with rate reductions, and Halifax reminds us all to be cautious, as we are far from out of the woods yet.”
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