Halifax slashes fixed rates

Rates will be reduced by up to 46bps across the lender's homebuyer ranges

Halifax slashes fixed rates

Halifax has announced that it is reducing rates by up to 46 basis points on selected two- and five-year fixed rate products, effective from Wednesday, November 15.

In an email sent to brokers on Tuesday, 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.

On the lender’s range of fee-free fixed rate products, two-year deals will start from 5.23% at 60% loan-to-value (LTV), 5.33% at 75% LTV, 5.60% at 80% LTV, 5.61% at 85% LTV, 5.69% at 90% LTV, and 6.11% at 95% LTV.

The UK’s largest mortgage lender will also lower the rates of five-year options to 4.64% at 60% LTV, 4.74% at 75% LTV, 4.92% at 80% LTV, 4.93% at 85% LTV, 5.08% at 90% LTV, and 5.46% at 95% LTV.

Meanwhile, on Halifax’s range of fixed rate products with a £999 fee, two-year rates will be 4.97% at 60% LTV, 5.07% at 75% LTV, 5.34% at 80% LTV, 5.35% at 85% LTV, 5.43% at 90% LTV, and 5.85% at 95% LTV.

Five-year fixes will have rates of 4.53% at 60% LTV, 4.63% at 75% LTV, 4.81% at 80% LTV, 4.82% at 85% LTV, 4.97% at 90% LTV, and 5.35% at 95% LTV.

HSBC also announced on Tuesday that it is reducing rates on selected residential and buy-to-let products.

Brokers welcomed the news, with one saying that the latest reduction from Halifax will “keep them in the best deals mix to maintain their market share and hopefully grow it.”

“It’s excellent to see more lenders with two-year fixed rates under 5%,” stated Stephen Perkins, managing director at Yellow Brick Mortgages. “We now just need to see this filter through to higher loan-to-values from the current 60% LTV levels they are at present. Which lender is next up to bat?”

For Lewis Shaw, owner and mortgage expert at Shaw Financial Services, Halifax stepping into the fray once again and dropping rates close to the 4.5% mark “will certainly put the cat among the pigeons.”

“Hopefully, this adds some momentum to the market and will trigger other lenders to sharpen their pencils or risk losing out,” he added.

Kirsty Wells, director at Blueprint Mortgages and Protection, stated she was already getting excited for the new year ahead with hopefully continued lower interest rates.

“I expect to see many more lenders follow suit as the big boys like HSBC and Halifax have both made announcements this week,” she said. “Keep them coming.”

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