Following a number of criteria alterations announced today, Halifax is set to make a number of changes to its existing product range as of Friday 15th March.
Across its remortgage products, including large loans, Affordable Housing – Shared Equity/ Shared Ownership and equivalent green home products, the lender will be introducing rate increases up to 0.17% on 2-year fixed products.
In addition, there will be rate increases of up to 0.32% on 2-year fixed products in its product transfer and further advance ranges.
All sourcing systems will be updated with the changes by Friday 15th March, and the lender has encouraged brokers to submit applications in full by 8pm tomorrow, Thursday 14th March, in order to secure existing product codes.
Newspage asked brokers for their reaction to the rate increase.
Reaction:
Richard Jennings CeMAP, founder and managing director at Richard Jennings Mortgage Services:
“The only thing that’s consistent in the mortgage market at present is its inconsistency.
“After GenH and Coventry both announced rate cuts, I hoped this would be the beginning of several lenders doing the same, so to see Halifax announce rate rises of up to 0.32% dashes those hopes.
“Continuing the theme of punishing existing borrowers rather than new ones, I note the highest rate rises are for those looking for product transfers and further borrowing.
“Loyalty is a two-way street that lenders appear to very seldom walk down.”
Amit Patel, adviser at Trinity Finance:
“The mortgage market appears drunk. I need a drink.”
Dariusz Karpowicz, director at Albion Financial Advice:
“Halifax hiking rates by up to 0.32% marks another negative adjustment in the lending landscape.
“This latest rate hike by the nation’s leading residential lender swiftly follows a prior increase, signalling a potent trend.
“Halifax’s actions not only spotlight its market strategy but also potentially steer the direction for other lenders.
“Despite emerging signs of a decrease in the cost of borrowing, this rate rise points to a complex mix of factors driving such decisions.
“It highlights the fluid nature of the mortgage market, where lenders navigate through a myriad of market dynamics, regulatory frameworks and economic signals.”
Darryl Dhoffer, adviser at The Mortgage Expert:
“Halifax were already in a hole this morning with the news that they are reducing certain maximum age limits from age 75 to 70, which doesn’t help borrowers stretched to the limit already.
“With these rate rises, they are still frantically digging a bigger hole.
“When SWAP rates are cooling, why are lenders increasing rates? The one positive is that we’ve at least had over 24 hours’ notice.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“There is nothing in the economic data over recent days to support such a hike in rates.
“So unless Halifax are inundated with enquiries and trying to turn off the taps, this rate rise seems wildly out of touch with the market.”
Justin Moy, managing director at EHF Mortgages:
“It’s a shame to see more rate increases, this time from the largest high street lender.
“A real mixed message from lenders today, with Coventry announcing lower rates while others continue to in the other direction.
“Some of this may be down to increasing workloads at lenders, as processing times have been slipping for many weeks across the sector.
“But with SWAP rates starting to fall, it would be prudent for lenders to to at least hold rates steady for a period of time, and not make it more expensive for borrowers.”
Ranald Mitchell, director at Charwin Private Clients:
“With SWAP rates easing back, I’m as surprised as anyone by these rates increases from Halifax. To make matters worse, they’re not small either.
“It’s possible that this is a temporary move to stem the inward flow of applications, but either way, it’s not good to see.
“On a day when Coventry Building Society has reduced rates, the mortgage market appears to have lost the plot.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“Here we go again. The ever-continuing rate increases seem to be gathering pace. If you snooze, you lose.”
Imran Hussain, director at Harmony Financial Services:
“What a shame. There is nothing in the market data that supports increases right now.
“The only people losing out are borrowers. We need some sort of stability around rates now more than ever.”
Luke Thompson, director at PAB Wealth Management:
“This is Halifax’s second strange decision of the day.
“They have been competitive on price in recent weeks it has to be said but the cost of money has been falling in recent days and we have had rate reductions from a couple of lenders this week.
“Halifax know, though, that a lot of their business is criteria driven and with this in mind a lot of the time they can charge what they want as long as it isn’t too expensive and customers will have to pay it as the business they tend to attract often won’t fit with other high street lenders.”
Ben Perks, managing director at Orchard Financial Advisers:
“With Swap rates trickling down and other lenders announcing cuts this has to be a tactical increase to stem the flow of business.
“They have been sourcing competitively recently, so after an influx of applications they need to step back and look after their service levels.
“I don’t think borrowers need to be spooked by this, but it would be nice to have a little more stability in rates to give people confidence.”
Rhys Schofield, brand director at Peak Mortgages and Protection:
“With the wholesale cost of lending for lender dropping in the last month by well over 0.5%, these feel like rate increases to boost the profit margin and keep a lid on new business volumes rather than a sign of rates increasing.
“With some lenders over a month behind on checking paperwork it’s a real problem.
“With base rate cuts seemingly round the corner, I’d hope to see lenders dropping rates again soon. It appears that they can afford to.”
