"It was only a matter of time before the UK's biggest mortgage lender made its move following reductions from other major lenders earlier in the week."
From Monday 2nd October, Halifax is reducing its fixed rate mortgages with rates now starting from 4.93% at 60% LTV with a £999 fee.
Speaking to Newspage, brokers welcomed the news but warned that, with swap rates edging up, the rate battle may slow in the weeks ahead.
Gary Boakes, director of Verve Financial, commented: “Halifax and Barclays are in tandem today with some great rate reductions. However, with the slight increase in swap rates this week, we may see the rate reductions start to slow now as we wait for the next set of inflation data and Monetary Policy Committee meeting.”
Justin Moy, founder at EHF Mortgages, also suggested that now may be the time to lock into rates while the competition among lenders lasts: “Barclays and Halifax have announced some significant rate reductions, with Halifax offering the lowest five-year fixed deal on the market. 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.”
Meanwhile, Jamie Lennox, director at Dimora Mortgages, said the move by Halifax was inevitable following activity from other major lenders this week: “It was only a matter of time before the UK's biggest mortgage lender made its move following reductions from other major lenders earlier in the week. This move can only be positive for the mortgage and housing market as a whole. However, customers dragging their heels to action a mortgage can't afford to wait to secure a deal after what we've seen in the past 12 months, as conditions can turn in no time at all.”
His views were shared by Graham Cox, founder of Self Employed Mortgage Hub: “Whether rates continue to fall depends on inflation. One bad month's figures could send the recent rate declines into reverse. That said, there does seem to be growing confidence in the City that the worst of the inflationary pressures are over.”
Craig Fish, managing director at mortgage broker Lodestone, also sounded a note of caution: "We should be very cautious as swap rates are moving around a little this week on the back of rising oil prices, and given that we still have to give serious consideration to the upcoming inflation data, these rates may not be around for long."
Simon Bridgland, director at mortgage and protection broker, Release Freedom, added: "I think next week will see the last drop in fixed money until the next inflation and MPC figures are released. Now is the time for people to act to secure a product while they are low. If the next round of figures released are not as good then we could see things get a little worse."
But Stephen Perkins, managing director at Yellow Brick Mortgages, was upbeat: “Rates continue to snowball downhill and summer is barely over. This is yet more great news for homeowners across the country. Rates will keep falling as lenders continue to contest a royal rumble for market share to hit lending targets off the back of the positive news on the base rate and inflation recently. It's game on.”
