“Hats off to the Halifax" as lender cuts rates by up to 0.2%

BROKERS have urged borrowers to take note as Halifax becomes the latest high street lender to announce rate cuts today. With the Budget looming and swap rates also nudging up slightly today, they say borrowers “need to be wary of missing out as these deals won't last forever".

This afternoon, Halifax announced reductions of up to 0.2% on selected remortgage, fixed rate and further advance products. It also announced cuts of up to 0.11% on selected homemover and first-time buyer fixed rate products.

Meanwhile, BMI Solutions announced cuts of up to 0.25% on selected buy-to-let fixed rate product transfer and further advance loans.

Darryl Dhoffer, Founder at Bedford-based The Mortgage Geezer, welcomed the cuts: “Hats off to the Halifax for being the latest high street lender to cut rates. Given the slight upward shift in Sonia Swap Rates today, which fixed rate mortgages are priced off, we might see rates creep higher in the coming days and weeks as we head towards Budget Day. Borrowers need to be wary of missing out as these deals won't last forever.”

Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, also urged borrowers to be wary of the Budget: "Halifax is the latest lender to reprice as a domino effect ripples through the mortgage market.

“What could happen to inflation and interest rates in the aftermath of the Budget is anyone's guess so borrowers need to take note of these cuts.”

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said the cuts are more good news for mortgage holders, especially those looking for a new deal in the coming months.

He also urged borrowers not to delay: “We will likely see some further small improvements as we approach the Budget, and given that so many factors can influence mortgage rate pricing, borrowers shouldn't delay if they are looking for a remortgage or renewal in particular.”

Dariusz Karpowicz, Director at Doncaster-based Albion Financial Advice, said the changes could save borrowers hundreds of pounds yearly: "Rate cuts are landing just when borrowers need them most, with Halifax and BM Solutions trimming costs across their ranges.

"Tomorrow's changes could save you hundreds yearly on your monthly payments, particularly if you're coming off a fixed deal soon. These drops signal how lenders are actively competing for your business again.

“If your fixed rate ends within six months, start comparing offers now; you can typically lock in rates up to six months early. Buy-to-let landlords seeing cuts up to 0.25% should act quickly, as buy-to-let rates often change faster than residential ones. Secure a good deal today rather than gambling on tomorrow's possibilities.”

David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth, said: "Fantastic news for mortgage borrowers as both Halifax and buy-to-let specialist lender, BM Solutions, cut their rates. There is a bit of lender competition brewing with many lenders already cutting over the past fortnight.

“With the Autumn Budget looming and uncertainty in the back of everyone's minds, this is welcome news. If you’ve been sitting on the fence, now could be the perfect time to explore your choices and take advantage of this renewed competition among lenders.”