Halifax makes further mortgage rate reductions

Halifax will make rate reductions to a number of products in its residential mortgage range, effective from Friday 6th October.

The updated range includes a 5-year product with a £999 fee at 5.72% up to 95% loan-to-value (LTV), a 5-year product with a £999 fee at 4.85% up to 75% LTV a 5-year product with no fee at 4.96% up to 75% LTV, and a 2-year product with a £999 fee at 5.32% up to 60% LTV.

Brokers told Newspage that this was a “lifeline for first-time buyers.”


Riz Malik, founder and director at R3 Mortgages:

“Halifax have come out fighting with their new wave of rate cuts as if they wanted to remind us they are the UK’s biggest lender.

“Lenders want to lend and we are seeing this with continued rate cuts and criteria expansion. Hopefully this will inject some confidence into the market, which it desperately needs.”

Lewis Shaw, owner and mortgage expert at Shaw Financial Services:

“While these rate reductions only knock small margins off, it’s still a step in the right direction.

“It’s not going to set the world alight and solve all the mortgage and property market woes but it’s undoubtedly better than rates moving in the opposite direction.”

Stephen Perkins, managing director at Yellow Brick Mortgages:

“Following earlier announcements of rate reductions from Coventry Building Society and HSBC, the UK’s largest mortgage lender is now doing the same as lenders continue to compete for market share. Very welcome news for all homeowners.”

Darryl Dhoffer, mortgage expert at The Mortgage Expert:

“This is a lifeline for the first-time buyer market, as those with 5% deposits can now obtain a rate of 5.72%.

“I have not seen a sub-6% deal with a 5% deposit for some time. Long may this continue.

“Consumers who are still hesitant should grab these deals now, as we all know how quickly things can change.”

Jamie Lennox, director at Dimora Mortgages:

“The scrap is well and truly on for the lenders heading into the last quarter of the year, as they chase their tails to meet lending targets for 2023.

“Unfortunately, these reductions are weak jabs that won’t excite the crowds to rush out and get a mortgage.

“We still need to see a challenger step up with knock-out power reductions to entice potential buyers to return to the housing market.”

Steven Hargreaves, mortgage and protection adviser at The Mortgage Co:

“More evidence, if required, that the rate war is on, as this is two rate reductions in a week for Halifax.

“This can only be good news and a huge relief for many many homeowners, that have deals coming to an end in the next few months, and for first-time buyers to get a foothold in the housing market.”

Gareth Davies, director at South Coast Mortgage Services:

“Rate reductions are always welcome, but in a world where the purchase market is struggling, dropping purchase products only won’t change things for many. Get the remortgage products down, too Halifax.”

Charles Breen, founder and director at Montgomery Financial:

“It is a sign of the seismic shift in lender mentality we have witnessed over the past few weeks.

“They have gone from cowering to lend to now being aggressive and looking to grab market share.

“It’s a good sign for the coming months as lender and hopefully consumer confidence returns to the housing market, though we are already seeing green shoots of this happening.”

Michelle Lawson, director – mortgage and protection adviser at Lawson Financial:

“This is great news for consumers and shows confidence is growing in the market and lenders want to lend.

“It is more important than ever before for consumers to speak to good brokers who will constantly monitor the marketplace to ensure they get the best rates.”

Simon Bridgland, broker and director at Release Freedom:

“Week three of proper rate cuts is marvellous news for borrowers, especially for higher loan-to-value loans.

“The market is full of good news at the moment, even the self-employed can be reassured that they too can look at generous loan-to-values in the market up to 95% with Nationwide.”