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Sub-5% fixed rates return with The Mortgage Works, while Halifax also cuts rates further

ended 13. September 2023

Halifax and The Mortgage Works (TMW) have today announced further cuts to their fixed rate products, with both lenders shaving up to 0.50% off selected deals (see screengrabs below).

Crucially, and in a major boost for borrowers, TMW has announced a 5-year fixed rate deal at 4.99%, with a 3% fee. This is the first sub-5% deal brokers say they have seen for months and is consistent with falling SWAP rates.

“This is more great news from the UK's largest mortgage lender and a division of the UK's largest building society”, said Gary Bush, financial adviser at the Potters Bar-based MortgageShop.com. “The mortgage rate war is well and truly underway and it's looking likely that there will be a busy end to 2023.”

The sentiment was echoed by Diarmuid Phoenix of Belfast-based Mint Mortgages & Protection: “Another welcome response from one of the UK's leading high street lenders. Seeing the return of rates under 5% in line with falling SWAP rates should hopefully give a boost of confidence to borrowers who have been living in fear of the end of their current fixed rate deals, as well as those who have been sitting on the fence, waiting for rates to come down before purchasing.”

Meanwhile, Justin Moy, founder at Chelmsford-based mortgage broker, EHF Mortgages, said: “These are significant cuts by both lenders this afternoon. The extent of the changes suggests that we should be seeing good inflationary figures this month, too. Halifax is bringing its products more in line with the rest of the High Street lenders, whereas the sub-5% 5-year fixed buy-to-let deal from The Mortgage Works is undoubtedly the headline grabber. The market is definitely improving and let's hope for more positive economic data in the days and weeks ahead.”

Amit Patel, adviser at Welling-based mortgage broker, Trinity Finance, was equally upbeat: ”After a summer of doom and gloom, it feels that, as we head into the autumn months, we may have turned the corner. Finally, there may well be light at the end of the tunnel for both homeowners and landlords as lenders are pricing their rates more competitively on the back of falling SWAP rates."

Elliott Culley, director at Hayling Island-based Switch Mortgage Finance, said landlords will be particularly pleased with the changes: “TMW rates are a massive shot in the arm for the buy-to-let market, which has struggled recently.”

Other brokers were pleased with the news but warned that we are not out of the woods yet. Ranald Mitchell, director of Norwich-based independent mortgage broker, Charwin Private Clients, said: “These are big cuts by two of the UK's most prominent residential and buy-to-let lenders. The race for business is accelerating, much to the relief of mortgage seekers and landlords alike. Seeing rates starting with a 4 is a sight for sore eyes and could provide a stimulus to the market and borrower confidence. Others will certainly follow but this may all prove to be short-lived when the Monetary Policy Committee make their base rate decision later this month.”

Jamie Lennox, director at Norwich-based mortgage broker, Dimora Mortgages, also sounded a note of caution: “The concern is that these reductions are too little too late to save the housing market.”

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9 responses from the Newspage community

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Justin Moy
Managing Director at EHF Mortgages
These are significant cuts by both lenders this afternoon. The extent of the change suggests that we should be seeing good inflationary figures this month, too. Halifax is bringing its products more in line with the rest of the High Street lenders, whereas the sub-5% 5-year fixed buy-to-let deal from The Mortgage Works is undoubtedly the headline grabber. The market is definitely improving and let's hope for more positive economic data in the days and weeks ahead.
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Ranald Mitchell
Director at Charwin Mortgages
Big cuts by two of the UK's most prominent residential and buy-to-let lenders. The race for business is accelerating, much to the relief of mortgage seekers and landlords alike. Seeing rates starting with a 4 is a sight for sore eyes and could provide a stimulus to the market and borrower confidence. Others will certainly follow but this may all prove to be short-lived when the Monetary Policy Committee make their base rate decision later this month.
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Elliott Culley
Director at Switch Mortgage Finance
Good to see further drops in rates. SWAP rates are continuing to reduce which can only be a good thing. TMW rates are a massive shot in the arm for the buy-to-let market that has struggled recently. There is still a long way to go, but there are more and more signs that the base rate changes are now having the desired effect the Bank of England was looking for. Possibly light at the end of the tunnel.
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Riz Malik
Independent Financial Adviser at R3 Wealth
It is survival of the fittest in the mortgage market at present and those left behind could struggle. Virtually all lenders are massively behind where they would want to be and are keen to keep their workforce busy. Halifax and TMW have shown they are both hungry for new business as all lenders realise they need us just as much as we need them.
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Diarmuid Phoenix
Mortgage & Protection Adviser at Mint Mortgages & Protection
Another welcome response from one of the UK's leading high-street lenders. Seeing the return of rates under the 5% bracket in line with falling SWAP rates should hopefully give a boost of confidence to borrowers who have been living in fear of the end of their current fixed rate deals, as well as those who have been sitting on the fence, waiting for rates to come down before purchasing.
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Jamie Lennox
Director at Dimora Mortgages
In a week of poor economic data, it comes as no surprise the outlook is shifting and lenders are having to reprice to try and gain as much market share as possible as demand continues to wain. The concern is that these reductions are too little too late to save the housing market.
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Gary Bush
Financial Adviser at MortgageShop.com
More great news from the UK's largest mortgage lender and a division of the UK's largest Building Society. The mortgage rate war is well and truly underway and it's looking likely that there will be a busy end to 2023.
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Amit Patel
Adviser at Trinity Finance
After a summer of doom and gloom, it feels that, as we head into the autumn months, we may have turned the corner. Finally, there may well be light at the end of the tunnel for both homeowners and landlords as lenders are pricing their rates more competitively on the back of falling SWAP rates.
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Darryl Dhoffer
Founder at The Mortgage Geezer
Welcome news indeed of further rate reductions. However, at ground level consumers are still hesitant as the fear of further base rate rises looms and puts buyers off. Until the Bank of England settles the base rate, we will not see buyers return in material numbers.