Halifax has confirmed it will be reducing its remortgage rates by up to 0.32% on selected 3-year fixed rates from Friday, 5th January.
The move follows previous rate cuts earlier in the week and aims to provide more competitive offerings to borrowers.
Imran Hussain, director at Harmony Financial Services, said the move was “great news, especially on a 3-year fix product, as the 3-year fixed products seem to be the happy medium for many borrowers currently hopefully more lenders start offering them as there are only a handful of lenders with a 3-year fixed rate offering.”
And the move looks looks likely to prompt other lenders to cut rates according to Ranald Mitchell, director at Charwin Private Clients: “The intensifying nature of the battle for mortgage business is taking another twist with Halifax focusing on the 3-year fixed rate products.
“These have been lagging behind 5-year pricing for some time now, a complete reversal of “ordinary” pricing the market has seen over the years.
“Focusing on the 3-year fixed rate products turns up the heat on other lenders who now need to constantly re-examine their own pricing. The great mortgage scramble is opening up on many fronts now.”
Gary Bush, financial adviser at MortgageShop.com agreed that more drops are likely: “Halifax tweaking its remortgage rates appears to be a reaction to HSBC’s lower rates being released for these transactions – lenders appear to be all over their competitors’ rate releases to ensure that they are on the right end of the market share war in 2024. To mortgage holders it’s GREAT news and with likely more decreases to come.”
Further reaction
Graham Cox, founder at Self Employed Mortgage Hub:
“3-year fixes aren’t offered by all lenders, and Halifax’s 3-year remortgage deals have been more expensive than their 2-year and 5-year counterparts. With less competition, that’s often the case. But these reductions of up to 0.32% will at least bring them more into line and is another positive step as rates continue their downward trajectory.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“Great to see that Halifax hasn’t forgotten the remortgage clients and this and the rate reductions from others that will surely follow will save money for many of the 1.4 million households coming off their ultra-low fixed rates this year. Looking forward to seeing this downward trend continuing.”
Darryl Dhoffer, mortgage expert at The Mortgage Expert:
“How the winds of change are sweeping through Halifax, bringing news of interest rate cuts on their 3-year fixed offerings. A feast for those looking to jump ship and find greener pastures, one might say. But this bounty is not equally distributed.
“For where, amidst this flurry of rate reductions, are the offerings for the loyal consumers, the steadfast Halifax residents with their current mortgage deals ending – only 2 and 5-year deals offered to these loyal clients.
“Like elusive komodo dragons, the 3-year retention products remain in the shadows, unseen, unheard. Has Halifax deemed them an inferior species, unworthy of a taste of the rate-cut banquet?”
Andy Keehner, head of Finanze Strategy at Finanze:
“Coming so soon from their other rate reductions, it’s clear Halifax means business. This sends out a message to other lenders who will hopefully follow suit.
“A great start to the New Year for borrowers hoping to see rates reduce and are worried about coming off historically low fixed rates. Let’s see what the rest of the industry does now. It’s one massive start to the New Year.”
