Halifax Intermediaries reduces residential mortgage rates

Effective from Friday 24th May, Halifax Intermediaries will make a number of reductions across its existing mortgage product range.

In both its homemover and first-time buyer ranges, the lender will make rate reductions of up to 0.19% on 2-year and 5-year fixed rate products.

The product search tool on the Halifax Intermediaries website, Halifax Intermediaries Online and sourcing systems will be updated by Friday 24th May.

The lender urged brokers wishing to secure existing product codes to submit applications in full by 8pm on Thursday 23rd May.

Nicholas Mendes, head of marketing and mortgage technical manager at John Charcol, said: “This latest reprice from Halifax reflects the current sentiment amongst lenders.

“Today’s inflation data unfortunately means markets will be pricing in a prolonged hold, meaning mortgage rates will remain around their current levels for a bit longer.

“It’s important to note that until an official bank rate cut happens, lenders will exhibit mixed attitudes.

“Those with smaller pipelines may be more proactive in implementing reductions.”

Further reaction:

Harps Garcha, director at Brooklyns Financial:

“In a bold move defying the gloomy inflation figures, both Coventry Building Society and Halifax have announced rate reductions, signalling a strategic long-term vision in the mortgage sector.

“These adjustments may encourage more lenders to cut, creating a more positive outlook for borrowers and the broader property market.”

Michelle Lawson, director at Lawson Financial:

“This is a small but welcome offering from Halifax, especially after the higher than expected inflation data this morning, and has the potential to trigger further rate reductions by competitors.

“Halifax have followed the Coventry Building Society in cutting so I suspect we will see some more rate reductions from lenders in the days ahead.”

Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management:

“While not a huge reduction from the Halifax, it is still a reduction and a result for borrowers.

“That’s now three lenders that have cut rates already this week, which is positive news overall.”

Elliott Culley, director at Switch Mortgage Finance:

“Catch these rates while you can. The calmer market we have had over the last few weeks has led to these changes from Halifax.

“However with the latest inflation figures coming in higher than expected, don’t be surprised if these rates are gone by next week.”

Dariusz Karpowicz, director at Albion Financial Advice:

“This is very positive news, especially coming from the UK’s largest residential lender, Halifax.

“A rate reduction of up to 0.19% on 2- and 5-year fixed products for first-time buyers and home movers is a small but significant step in the right direction.

“With today’s inflation data showing a drop from over 10% to just over 2%, this move aligns well with the improving economic outlook.

“We’re anxiously waiting to see if other lenders will follow Halifax’s lead and provide further relief to borrowers.”

Ben Perks, managing director at Orchard Financial Advisers:

“A modest drop by the Halifax, but a drop all the same.

“This offers a glimmer of hope that lower rates are on the way.”

Justin Moy, managing director at EHF Mortgages:

“This is a very timely cut by Halifax, albeit more of a reaction to receding swap rates than the inflation figures out earlier today.

“This is another lender prioritising home-movers and first-time buyers to stimulate the housing market a little, but sadly neglecting those existing borrowers who need to remortgage.

“Let’s hope those loyal borrowers will feel the financial benefit soon.”

Ranald Mitchell, director at Charwin Private Clients:

“In light of positive commentary from the IMF and encouraging inflation figures, it’s reassuring to see a major lender like the Halifax reducing mortgage rates.

“While the cuts are modest and unlikely to significantly boost consumer confidence on their own, true recovery will hinge on the Bank of England eventually reducing the base rate.”

Elliott Benson, owner at Sett Mortgages:

“A taste of things to come with the inflation news and fingers crossed a base rate reduction in June!

“Hopefully we will see coverage of this to bring some positivity to buyers after a recent spike in rates”