Halifax has revised its fixed remortgage rates for 2024, introducing significant reductions to support a range of loan-to-value (LTV) options.
The adjustments include a 2-year fixed remortgage rate now at 4.68%, a decrease from the previous 5.25%, applicable for loans between £100,000 and £1,000,000 and available up to 60% LTV for both repayment and interest-only mortgages.
For the same term, the rate for up to 75% LTV is now 4.81%, reduced from 5.64%, and for up to 80% LTV, the rate is 5.41%, down from 5.88%.
Additionally, the 5-year fixed remortgage rates have been adjusted, with a new rate of 5.08% for up to 85% LTV, previously at 5.48%, and a rate of 5.27% for up to 90% LTV, reduced from 5.68%.
Reaction
Imran Hussain, director at Harmony Financial Services:
“Though this is a positive move, why could they not have done this in December as many borrowers will have now gone onto deals on the 1st of January and could have benefited from savings?”
Justin Moy, managing director at EHF Mortgages:
“It’s good to see the Halifax improve many of its rates across its remortgage and product transfer ranges. However, this feels like a quick catch-up to be in the middle of the pack. Other lenders have already launched cheaper products, and it will be interesting to see if Halifax will reprice further in the next week or so.”
Imogen Sporle, head of Finanze Property at Finanze:
“As we suspected, the New Year will bring new opportunities and a new impetus for lenders to take a lead in stimulating business. Regardless of the economic forecasts, lenders need to move money and the only way to do that is to offer competitive rates. It’s good to see this happening so soon and we’ve already seen borrowers lining up their plans for the year ahead.”
Simon Bridgland, broker/ director at Release Freedom:
“Great to see lenders coming out swinging. I look forward to the details being updated on the intermediary website. Hopefully, these great reductions have made their way up to the higher end of the loan-to-value spectrum. I’m sure this will be the start to a manic week.”
Mike Staton, director at Staton Mortgages:
“This was always on the cards. Halifax’s massive reductions reflect their extremely high rates at the end of 2023. These reductions still do not make Halifax the cheapest lender on the market by some distance. Also, it does feel like a kick in the nether regions to those borrowers who fixed their mortgages recently with Halifax at much higher rates. These falling rates tell me my decision to switch my own mortgage to a tracker with no ERC was the right thing to do. This rate decrease indicates to me that we will see a lot of people pay their ERC this year to come out of the +6% rate they fixed earlier in the year. The banks are onto a massive winner with this.”
James Bull, mortgage broker at JB Mortgages:
“It is fantastic to see lower rates finally coming out and let’s hope this kickstarts the flagging housing market as we bed into 2024.”
Graham Cox, founder at Self Employed Mortgage Hub:
“Halifax lowering rates by up to 0.92% is a reflection that they were far from being the cheapest at the end of last year. With the decks cleared, they’re ready to take on new cases and get some early sales in, so have slashed rates. Other lenders will follow soon no doubt; competition in this slow market is fierce.”
Rohit Kohli, operations director at The Mortgage Stop:
“Several lenders including Halifax were overpriced as the year ended compared to other deals in the market, probably because they did not want a busy end to the year. It’s great to see the predicted reductions kick in so early in the new year but I think this is just the Halifax playing catchup with other lenders. We’ll be watching what happens in the lead-up to the next inflation figures in a couple of weeks and the news on Christmas retail sales as this will likely drive lender decisions as they will provide a better indicator on any potential Bank of England rate decision in February.”
