Major lender's latest increases follow a wave of repricing driven by higher funding costs
Halifax has announced rate increases across several mortgage categories, effective from tomorrow, 28 July, marking the lender's second round of increases in under two weeks.
For homemovers and first-time buyers, Halifax is raising rates by up to 0.15% on selected two, three and five-year fixed products.
Remortgage customers face steeper increases of up to 0.20% on the same fixed-rate terms. Product transfer rates will rise by up to 0.10% on selected two and five-year products.
The Halifax changes are part of a wider pattern of repricing across the UK mortgage market. Last week, several major lenders — including Barclays, Halifax, HSBC and TSB — raised rates across residential and buy-to-let products.
According to Moneyfacts, the average two-year fixed rate has risen to 5.59% from 5.50% the previous week, and the average five-year fixed rate has increased to 5.61% from 5.52%.
The current wave of repricing began weeks prior, as renewed tensions in the Middle East pushed up swap rates and increased funding costs.
"Halifax has some decent mortgages available but they won't be around much longer," said Aaron Strutt (pictured right), product director at Trinity Financial. "The bank has two-year fixed rates starting from 4.53%, three-year fixes from 4.58% and five-year fixes from 4.52% but with so many of its competitors increasing rates recently and the cost of funding hikes, this rate rise was always going to happen.
"It does not look like the bank's 4.06% two-year tracker rate is going up, and it is offering increasingly good value for money now. The Halifax premier current account holder rates seem to be around 0.2% cheaper than the lender's standard rates, so if you are looking for a Halifax mortgage and you earn over £100,000, it is well worth opening an account before applying for a mortgage."
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