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Halifax cuts rates by up to 0.3%: "The mortgage market is mirroring the weather: it’s raining rate cuts this week"

Journalist: Justin Moy, Contributing Editor

ended 25. September 2024

Following Coventry this morning, Halifax and The Mortgage Works are the latest lenders to cut their rates as competition heats up for market share in the final quarter of the year, with the Halifax shaving rates by up to 0.3%. First-time buyers, homebuyers and landords will be the main beneficiaries as rates continue to reflect the likelihood of further base rate cuts in the months ahead. Newspage asked brokers for their thoughts, below.

 

11 responses from the Newspage community

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Stephen PerkinsVerified
Managing Director at Yellow Brick Mortgages
Lenders are trying to fill their boots before the autumn Budget potentially puts a giant hole in them. Now is a great time for borrowers to grab a deal with rate reductions across the board.
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Simon BridglandVerified
Director at Charwin Private Clients
The mid-week battle for top spot keeps hotting up, as Halifax put forward yet another drop on fixed rate mortgages for those looking to move or buy their first home. This competitive display by Halifax of up to 0.3% reductions shows they are fighting to stay on top for residential lending. Meanwhile, Nationwide’s specialist buy to let lender, The Mortgage Works looks set to continue dominating the buy-to-let space with some sub-4% crackers. TMW are poised to take themselves into 2025 as the go to place for buy to let, and lender of choice for brokers looking to support their landlord clients.
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Tony CastleVerified
Managing Director at PFG Mortgages
The mortgage market is mirroring the weather: it’s raining rate cuts this week. Halifax certainly have the momentum with yet more rate cuts this week. More mortgage rates starting with a 3 is another welcome sight for first-time buyers and homeowners.
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Kim McGinley0
Director & Specialist Broker at VIBE Finance
The recent rate cuts are a welcome sign for the mortgage market as lenders continue to compete for business. Any reduction in rates is always encouraging, offering borrowers better opportunities and increased affordability. It’s great to see the market adapting and responding to demand, and this ongoing trend of rate reductions can only be a positive development for those looking to secure their next property.
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Iain SwattonVerified
Director at Exemplar Financial Services
With Halifax, TMW, and a host of other lenders dropping their rates in quick succession, it feels like we’re in the middle of a real price war. Despite the Bank of England holding the base rate steady, there's growing hope that we’ll see a cut at the next review. For now, this rate-cutting trend shows lenders are determined to grab market share, making it an exciting time for anyone looking to buy or remortgage. Whatever the reason behind the reductions, the bottom line is that it's great news for consumers with more options, better deals, and a more competitive market.
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Justin MoyVerified
Managing Director at EHF Mortgages
More high street mortgage rate cuts, and this time sizeable ones of up to 0.3% by the Halifax as they scramble to keep up with other major lenders. Homeowners and first-time buyers will benefit the most from Halifax's repricing. However, for landlords this is also a great time to be refinancing and finding some bargain properties to invest in. These rate cuts are perfect timing for that.
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Ranald MitchellVerified
Director at bad credit mortgage specialists Charwin Mortgages
It's an exciting time for homeowners and buyers, with Halifax the latest lender to decrease rates futher. It seems like cheaper borrowing is returning as lenders relentlessly cut mortgage rates, vying for the top spot to get mortgage money moving. The rate reductions are showing little sign of letting up, meaning it's a party in the pockets of many borrowers. Hats off to the Halifax.
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Michelle LawsonVerified
Director at Lawson Financial
The raft of reductions continue with TMW and Halifax bringing joy to both the residential and beleaguered buy-to-let sector. There is no sign of things cooling so hopefully the tide is eventually turning.
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Gabriel McKeownVerified
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
From fiscal famine to feast, mortgage rates are plummeting as lenders offer eager borrowers a smörgåsbord of savings. In a bold move reflecting the shifting tides of the financial landscape, Halifax and TMW have announced significant rate cuts. This strategic adjustment comes as swap rates decline and competition intensifies, setting the stage for a dynamic close to 2024. These widespread reductions are not merely a response to current market conditions but also a strategic play from lenders anticipating further rate cuts. Despite a period of pause from the BoE, general expectations for future rate cuts remain strong, with lenders likely anticipating a reduction as early as November. Recent trends show a consistent decline in swap rates over the past few months, driven by improved economic conditions and decreasing inflation expectations. The lending pendulum may have finally swung, with falling rates acting as a wrecking ball to the walls of unaffordability for budding homeowners.
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Rohit KohliVerified
Director at The Mortgage Stop
More reductions from The Mortgage Works and Halifax are starting to heat up the price war on a cold rainy day. It's safe to say that lenders are looking to get business done now and they probably have one eye on the Halloween Budget just in case markets get spooked and everyone runs for hills.
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Elliott CulleyVerified
Director at Switch Mortgage Finance
Further reductions from lenders will be welcome news for borrowers. The competition from lenders is fierce as some first-time buyers are still contemplating when the right time is to buy. Lenders will be hoping these deals will entice more would-be borrowers into the market.