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Halifax and BM Solutions announce rate cuts from 1 August but timing could "leave borrowers with a bitter taste in their mouths"

Journalist: Justin Moy, Mortgage & Property Reporter

ended 31. July 2024

Both Halifax and its sister brand, BM Solutions, have today announced rate cuts on a selection of mortgage products starting from 1st August. Newspage asked brokers for their views, including on the timing of the cuts, as brokers say end of month announcements can make it difficult for those on Product Transfers to take advantage of these potentially cheaper rates. For their views, see bottom.

 

6 responses from the Newspage community

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Hannah Bashford
Director at Model Financial Solutions
In the spirit of the classic game Bullseye, “let’s see what you could have won!” Halifax and BM Solutions reducing rates the day after many loyal customers complete on their product transfer seems a bit mean but any and all reductions at the moment are very welcome.
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Justin Moy
Managing Director at EHF Mortgages
More welcome rate cuts from two of the largest mortgage lenders. It's just disappointing that, yet again, we see the rates changing from the first of the month, meaning those people swapping to new rates via a Product Transfer will potentially miss out on these improved deals. Launching those same improvements a few days earlier would give borrowers ample time to make a better-informed decision, and not leave borrowers with a bitter taste in their mouths.
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Olivia Harland
Senior Mortgage Consultant at Cleerly Limited
Rate cuts are always welcome as long as they are not withdrawn soon after launch. When they are released at the end of the month after the cut-off to take effect on the 1st of the following month, it can be hugely frustrating for borrowers. They face the prospect of being on the hefty standard variable rates, and potentially losing the benefit of the lower rate, or sticking with what they have. No doubt this is intentionally timed by lenders to eke out more of a profit, but it is also very obvious to those on the wrong end of the practice. As far as regulation is concerned, the FCA are always careful not to stifle competition and pricing unless it is blatantly unfair to consumers. It is unlikely lenders will be leaned upon to time the availability of product launches in favour of the consumer anytime soon. Our advice to all borrowers is to review options for rate switches at least 6 months prior to expiry, which means seeking advice from a broker rather than the lender.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Loyal customers, here is what you could have won. The timing of Halifax rate cuts always means that those just about to complete their product switch and stay with Halifax are excluded from benefiting from the new rates. That frustration aside, it’s always good news to see rates reducing and hopefully this will be followed quickly by a base rate reduction tomorrow.
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Elliott Culley
Director at Switch Mortgage Finance
Interest rates are continuing to slowly decrease, which is always welcome news. It shows that lenders have growing confidence in the market and could be an opportune moment for mortgage holders or first-time buyers to look at securing a deal.
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Dariusz Karpowicz
Director at Albion Financial Advice
The biggest lending group in the UK joins the rate-cutting party—great news for consumers and a hopeful sign for the property market. This trend of lenders reducing rates is fantastic, and we can only hope it continues. More rate cuts would provide a much-needed boost to the UK's property market, making homeownership more accessible and supporting economic stability. Let's keep the positive momentum going!