Copy article

Halifax delivers "a massive mortgage curveball" as it cuts fixed rates

ended 22. February 2024

Halifax has just announced selected fixed rate cuts, which will go live from tomorrow. With a number of other major lenders announcing rate increases today and this week, Newspage asked brokers what's going on. Their views can be found below.

13 responses from the Newspage community

Copy all

Star Quote
Copy

Platinum
Michelle Lawson
Director at Lawson Financial
The mortgage market appears to have left the realm of reason. The messages emerging from lenders are way beyond mixed. Whilst rate reductions are good, they are only good if they last and are not countered by a rise tomorrow. This is less a rollercoaster than a ghost ride at the moment.
Star Quote
Copy

Platinum
Rohit Kohli
Director at The Mortgage Stop
In a week of relentless rate hikes from major lenders, it's refreshing to see one of the big 6 taking a more pragmatic approach. After a week of lows, Halifax have delivered a high. We'll have to wait and see what these reductions look like but this news from Halifax will give a small sigh of relief to borrowers who have been watching rates go upwards this week. This just underpins how unstable and unpredictable the UK mortgage market is at the moment.
Star Quote
Copy

Premium
Imran Hussain
Director at Harmony Financial Services
Halifax are well and truly smacking the competition right now. They have an appetite to remain the UK's number 1 mortgage lender. While others are going one way, Halifax are going the other. Halifax must be seeing this as an opportunity to sweep up business, especially as they have the functions in place to actually service the business they receive.
Star Quote
Copy

Gary Boakes
Director at Verve Financial
Opportunity knocks, with Halifax clearly seeing the current climate as a great opportunity to increase their market share. With other lenders increasing rates today and this week, this is great response and fantastic publicity. Even if the rates are just 0.1% lower, the extra business and positive news will be worth the potential cut in their margins. A tactical moved timed perfectly. Well done Halifax.
Copy

Platinum
Ben Perks
Managing Director at Orchard Financial Advisers
Wait, what? There has been an influx of emails today notifying us of rate increases, which has left brokers and borrowers feeling much like the weather outside, namely glum. But Halifax have just appeared like a rainbow amid the storm and given us a glimmer of hope. Rate reductions will be welcomed by brokers and borrowers alike.
Copy

Platinum
Ranald Mitchell
Director at Charwin Mortgages
Following a series of rate hikes by prominent high street lenders this week, Halifax has just delivered a massive mortgage curveball by announcing a reduction in fixed rates effective from tomorrow. Uncertainty continues to grip the UK housing market as mortgage rates fluctuate. In a tumultuous turn of events, the UK housing market finds itself ensnared in a whirlwind of uncertainty as mortgage rates continue to oscillate unpredictably. This unexpected move has left consumers and industry professionals alike in a state of disarray, grappling with the perplexing question of what direction the market will take next. The chaos, conflicting signals and mixed messages are further fueling the prevailing sense of unease and instability within the housing sector.
Copy

Platinum
Elliott Culley
Director at Switch Mortgage Finance
The decision by Halifax to reduce rates at a time when other lenders are increasing sticks out like a sore thumb. However, it is a welcome piece of news at a time of real precariousness for borrowers. Halifax are most likely looking to increase business levels and are seeing this as an opportunity to attract borrowers at a time where most will be scrabbling around looking for the best deal. Hats off either way.
Copy

Platinum
Ken James
Director at Contractor Mortgage Services
What's this I hear you cry? A rate reduction? Surely we must have read that wrong. At first I actually thought this was a rate increase, so imagine my delight to see I was wrong.
Copy

Platinum
Craig Fish
Director at Lodestone Mortgages & Protection
This move from Halifax stands out like a sore thumb, and shouts out loud that they need some business. They havent been priced very well of late, and its those lenders that have hiked their rates that have been reaping the rewards of their pricing strategy and winning all teh business. Now its all eyes on Halifax and exactly what rates they will have on offer. We just hope that these rates have some life in them and wont be withdrawn in a matter of days.
Copy

Premium
Aaron Strutt
Product and Communications Director at Trinity Financial
All of these changes highlight how important it is for borrowers to secure a rate when they can. Many people have been holding off taking a new mortgage deal because they expected rates to get better. This may well happen but it might not be for a while.

It seems likely the other big providers will make changes over the coming days given the increase in the cost of borrowing. Halifax is bucking the trend by lowering its rates as its competitors are putting them up.
Copy

Louis Mason
Content and Communications Director at Oportfolio Mortgages
Up...down...up...down...Is anyone else starting to feel a bit queezy? The fluctuation in interest rates seen over the last week or so really highlights why people need mortgage advice now more than ever. We are advising our clients to move quickly when it comes to remortgages and new purchases. Now, jumping pouncing on interest rates as soon as you can might seem like bad advice to some, but in reality it is what needs to be done to ensure that you still get a good deal. And, if rates do drop again before completion, your broker can easily switch you to a better deal. It's a market that we all need to accept and evolve with.
Copy

Gary Bush
Financial Adviser at MortgageShop.com
HSBC put their rates all up, along comes the largest mortgage lender in the UK, Halifax, reducing their rates in an amazing about-turn catching all their competitors sleeping. A superb strategy from Halifax owners, Lloyds Banking Group.
Copy

Gareth Davies
Director at South Coast Mortgage Services
The mortgage market is up and down like a fiddler's elbow right now. An interesting move from Halifax, but one that will be moot if they change things again in a matter of days. This market needs confidence to return, which can only happen with consistent lending principles from the banks. Let's not forget the man in the middle of all this though. The broker. I know I am biased, but brokers are working relentlessly right now to try and shield consumers from the turbulence, and this work is easily forgotten by lenders when you consider the volume of business introduced from the intermediary market.