Lenders are doing more to attract borrowers, but most fixed rates remain higher than borrowers had hoped
Halifax is implementing a series of rate reductions across its mortgage range from Monday, 24 August.
For homemover and first-time buyer products, the lender is cutting rates by up to 0.11% on selected fixed rate deals.
On the remortgage side, Halifax is reducing the rate on its 60% loan-to-value two-year fix with a £1,999 product fee by 0.13%.
No changes are being made to product transfer or further advance products.
The reductions come as competition among lenders continues to shape the fixed rate market, though industry figures suggest the pace of cuts has yet to generate significant borrower enthusiasm.
Earlier this week, HSBC UK has lowered mortgage rates by up to 0.20% and raised its maximum lending limits across residential purchase and remortgage products.
Data from Moneyfacts shows the average two-year fixed rate at 5.60% and the average five-year fix at 5.63% as of Thursday — both slightly lower than the week prior, though still well above the rates being offered by the most competitive lenders.
"Fixed rates have been coming down but not quickly enough to get homebuyers or remortgage customers excited," said Aaron Strutt (pictured right), product director at Trinity Financial.
"Santander has a best buy 4.47% two-year fix but most two-year fixes are over 4.5% and more expensive than most borrowers hoped they would be at this point in the year. The five-year fixes start from 4.51% via Santander, but most are above 4.6%.
"If you earn over £100,000, then Lloyds Premier via Halifax has a two-year fix at 4.39%, a 4.43% three-year fix and a 4.46% five-year fix. Barclays still has its two-year tracker at 3.99% which is a clear market leader.
"Lenders are doing more to try and attract borrowers with HSBC increasing its maximum loan sizes and other lenders raising their income multiples."
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
