Halifax announces further cuts to mortgage rates

Halifax has launched a sub-6% deal at 95% LTV as part of the changes.

Related topics:  Mortgages
Rozi Jones | Editor, Barcadia Media Limited
5th October 2023
"This is a lifeline for the first-time buyer market, as those with 5% deposits can now obtain a rate of 5.72%."

Halifax has announced that, from Friday, 6th October, it is making further reductions to its fixed rate mortgages.

Highlights of the new range include five-year fixed rates at 4.85% up to 75% LTV with a £999 fee or 4.96% fee-free. Two-year fixed rates now start from 5.32% at 60% LTV with a £999 fee, while a five-year fix at 95% LTV has reduced to 5.72% with a £999 fee.

Newspage asked brokers for their views.

Darryl Dhoffer, founder of The Mortgage Expert, said: “This is a lifeline for the first-time buyer market, as those with 5% deposits can now obtain a rate of 5.72%. I have not seen a sub-6% deal with a 5% deposit for some time. Long may this continue. Consumers who are still hesitant should grab these deals now, as we all know how quickly things can change.”

Riz Malik, director of R3 Mortgages, commented: “Halifax have come out fighting with their new wave of rate cuts as if they wanted to remind us they are the UK’s biggest lender. Lenders want to lend and we are seeing this with continued rate cuts and criteria expansion. Hopefully this will inject some confidence into the market, which it desperately needs.”

Lewis Shaw, founder of Shaw Financial Services, added: "While these rate reductions only knock small margins off, it's still a step in the right direction. It's not going to set the world alight and solve all the mortgage and property market woes but it's undoubtedly better than rates moving in the opposite direction."

Jamie Lennox, director at Dimora Mortgages, agreed with Shaw: “The scrap is well and truly on for the lenders heading into the last quarter of the year, as they chase their tails to meet lending targets for 2023. Unfortunately, these reductions are weak jabs that won't excite the crowds to rush out and get a mortgage. We still need to see a challenger step up with knock-out power reductions to entice potential buyers to return to the housing market.”

Charles Breen, founder and director at Montgomery Financial, ended on a positive note: “This is a sign of the seismic shift in lender mentality we have witnessed over the past few weeks. They have gone from cowering to lend to now being aggressive and looking to grab market share. It's a good sign for the coming months as lender and hopefully consumer confidence returns to the housing market, though we are already seeing green shoots of this happening.”

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