Mortgages

Halifax launches lowest ever two-year fix at 0.83%

Rozi Jones
|
9th August 2021
Halifax
"What this really tells us isn't that lenders are wanting a rate war, more that lenders are as keen as mustard to get super low risk business on their books"

Halifax has launched a two-year fixed rate at 0.83%.

Available up to 60% LTV, the product comes with a £1499 fee and is available for purchasers and home movers.

Alternatively, the same product is available at 0.87% with a lower £999 fee.

The Bank has also launched a five-year fixed rate at 1.03% and a 10-year fix at 2.07%.

Lewis Shaw, founder and mortgage expert at Shaw Financial Services, commented: "The latest rates from the Halifax are stupendously low. I've never seen anything like this in all the years I've been broking.

"What this really tells us isn't that lenders are wanting a rate war, more that lenders are as keen as mustard to get super low risk business on their books, probably to balance out the higher LTV lending they've had their hands forced into.

"Like most brokers, I'm grateful this has come from a great lender like Halifax who are easy to deal with, have sensible lending criteria and are offering fantastic rates both with and without fees, depending on your circumstances."

Scott Taylor-Barr, financial adviser at Carl Summers Financial Services, added: "If you have got the deposit or equity in your home to take advantage of these deals then great, why wouldn't you? However, as with all things, the devil is in the detail and it's very easy to get carried away by a sexy headline rate and miss the nuts and bolts. For example, is there a set-up fee, is there a valuation fee, what about legal costs, is there any cash back?

"While a sub-1% rate grabs the headlines any benefit can soon be gobbled up by the fees if you're not careful. It may not be quite as glamorous, but a slightly higher interest rate deal with no fees could actually be the better deal for some borrowers. It will all depend on the size of the mortgage and the amount of your equity or deposit."

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