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Halifax cuts fixed rate mortgage pricing

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ended 28. September 2023

From Monday, 2 October, Halifax has announced it is reducing its fixed-rate mortgages with rates starting from 4.93% at 60% LTV with a £999 fee. Brokers welcomed the news but warned that, with SWAP rates edging up, the rate battle may slow in the weeks ahead.

Gary Boakes, director of Salisbury-based mortgage broker, Verve Financial, commented: “Halifax and Barclays are in tandem today with some great rate reductions. However, with the slight increase in SWAP rates this week, we may see the rate reductions start to slow now as we wait for the next set of inflation data and Monetary Policy Committee meeting.”

Justin Moy, founder at Chelmsford-based mortgage broker, EHF Mortgages, also suggested that now may be the time to lock into rates while the competition among lenders lasts: “Barclays and Halifax have announced some significant rate reductions, with Halifax offering the lowest 5-year fixed deal on the market. With SWAP rates increasing in the background, borrowers may need to make quick decisions to secure rates in the coming days, and take advantage of the competition on the High Street while they can.”

Meanwhile, Jamie Lennox, director at Norwich-based mortgage broker, Dimora Mortgages, said the move by Halifax was inevitable following activity from other major lenders this week: “It was only a matter of time before the UK's biggest mortgage lender made its move following reductions from other major lenders earlier in the week. This move can only be positive for the mortgage and housing market as a whole. However, customers dragging their heels to action a mortgage can't afford to wait to secure a deal after what we've seen in the past 12 months, as conditions can turn in no time at all.”

His views were shared by Graham Cox, founder of the Bristol-based broker, Self Employed Mortgage Hub “Whether rates continue to fall depends on inflation. One bad month's figures could send the recent rate declines into reverse. That said, there does seem to be growing confidence in the City that the worst of the inflationary pressures are over.”

Craig Fish, Managing Director at London-based mortgage broker Lodestone, also sounded a note of caution: "We should be very cautious as SWAP rates are moving around a little this week on the back of rising oil prices, and given that we still have to give serious consideration to the upcoming inflation data, these rates may not be around for long."

Much the same conclusion was drawn by Simon Bridgland, director at Canterbury-based mortgage and protection broker, Release Freedom: "I think next week will see the last drop in fixed money until the next inflation and MPC figures are released. Now is the time for people to act to secure a product while they are low. If the next round of figures released are not as good then we could see things get a little worse."

But Stephen Perkins, managing director at Norwich-based Yellow Brick Mortgages, was upbeat: “Rates continue to snowball downhill and summer is barely over. This is yet more great news for homeowners across the country. Rates will keep falling as lenders continue to contest a royal rumble for market share to hit lending targets off the back of the positive news on the base rate and inflation recently. It's game on.”

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11 responses from the Newspage community

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Justin MoyVerified
Managing Director at EHF Mortgages
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Barclays and Halifax have announced some significant rate reductions, with Halifax offering the lowest 5-year fixed deal on the market. With SWAP rates increasing in the background, borrowers may need to make quick decisions to secure rates in the coming days, and take advantage of the competition on the High Street while they can.
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David StirlingVerified
Independent Financial Advisor at Mint Wealth
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Whilst this isn't exactly Christmas come early for borrowers, the competition does seem to be hotting up between lenders to offer more welcome sub 5% lending rates. With borrowers usually being able to switch rates up until completion, this would be an opportune moment to get on the gravy train and book a new rate early.
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Simon BridglandVerified
Director at Charwin Private Clients
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I think next week will see the last drop in fixed money until the next inflation and MPC figures are released. Now is the time for people to act to secure a product while they are low. If the next round of figures released are not as good then we could see things get a little worse.
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Craig FishVerified
Director at Lodestone Mortgages
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This is a very positive step in the right direction, bringing the UK's largest mortgage lender into line with the rest of the big lenders. Even more positive is the fact that they are offering the lowest 5-year fixed rate at present, which is a clear message to the others that they are keen to do some business. I doubt that this will stoke up any real interest in the purchase market, though, as rates will have to go much lower before that happens, and it's still very disappointing that these rates are only available for those who wish to purchase and not remortgage. We should very cautious as SWAP rates are moving around a little this week on the back of rising oil prices, and given that we still have to give serious consideration to upcoming inflation data, these rates may not be around for long.
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Stephen PerkinsVerified
Managing Director at Yellow Brick Mortgages
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Rates continue to snowball downhill and summer is barely over. This is yet more great news for homeowners across the country. Rates will keep falling as lenders continue to contest a royal rumble for market share to hit lending targets off the back of the positive news on the base rate and inflation recently. It's game on.
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Darryl DhofferVerified
Founder at The Mortgage Geezer
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With the largest UK lender, Halifax, now playing its hand for lower rates as September closes, these reductions albeit welcome do seem too cautious compared to other lender reductions we have seen recently. Halifax always pitches itself for the longer haul so I expect these rates offered to be the norm as October progresses. We certainly should not get carried away with rate reductions, and Halifax reminds us all to be cautious, as we are far from out of the woods yet.
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Graham CoxVerified
Director at Bridging Hub
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With more lenders reintroducing rates starting with a 4, the housing market should pick up. But whether rates continue to fall depends on inflation. One bad month's figures could send the recent declines into reverse. That said, there does seem to be growing confidence in the City that the worst of the inflationary pressures are over.
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Jamie LennoxVerified
Director at Dimora Mortgages
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It was only a matter of time before the UK's biggest mortgage lender made its move following reductions from other major lenders earlier in the week. This move can only be positive for the mortgage and housing market as a whole. However, customers dragging their heels to action a mortgage can't afford to wait to secure a deal after what we've seen in the last 12 months, as conditions can turn in no time at all.
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Steven Hargreaves
Mortgage and Protection Adviser at The Mortgage Co
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Again, fantastic news. It really feels like the mortgage rate war is now raging.
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James Bull
Mortgage Broker at JB Mortgages
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Halifax are often the first out of the blocks when it comes to reducing rates. Now they have done this the hope is that the word gets out that mortgages are more affordable, and it injects some much-needed momentum into the flagging house purchase market.
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Gary BoakesVerified
Director at Verve Financial
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Halifax and Barclays are in tandem today with some great rate reductions. However, with the slight increase in SWAP rates this week, we may see the rate reductions start to slow now while we wait for the next inflation data and Monetary Policy Committee meeting. The majority of first-time buyers I'm meeting are still happy with the monthly costs and in most instances, it is similar or cheaper to their current rent. The increase in rates is having an effect on current homeowners where the increases are a shock to their current lifestyle but first-time buyers don't have that worry and with this now being a buyers' market there is more opportunity to negotiate on price. This is the positive news we should be promoting along with reducing rates.