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Halifax Cuts Rates 1st November 2023

Journalist: Newsteam, Newsteam

ended 31. October 2023

Halifax has just announced, that with effect from Wednesday 1st November, it will be making changes to its residential mortgage product ranges. It looks like the only changes are follows:

  • NEW Build Ranges - 95% LTV - a reduction of 0.20% on their 2yr and 5yr fixed rates
  • Product Transfers and Further Advances have been noted as decreasing however these are bespoke to each client

Are Halifax doing enough to support the market ? Why only New Build rate changes ? Do you expect Product Transfer rates and Further Adavance rates to be competitive ?

 

 

7 responses from the Newspage community

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Editor
Justin Moy
Managing Director at EHF Mortgages
Halifax have reduced rates consistently across their range in October, so we should recognise that they remain important lenders in the mainstream market. All banks recognise the importance of retaining clients, so tweaking those product transfer rates will be welcomed by many borrowers, too. The new build deals at 95% will have minimal impact on the rest of the market, though.
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Editor
Darryl Dhoffer
Founder at The Mortgage Geezer
Halifax has just announced some changes to its residential mortgage product range, but it's unlikely to be enough to scare away the mortgage monsters lurking in the market. The only changes Halifax is making are to its new build range, namely 95% LTV, with a reduction of 0.20% on their 2-year and 5-year fixed rates. This is a welcome change for first-time buyers and those looking to buy a newly built property, but risks leaving existing Halifax customers feeling spooked and out in the cold. These changes by the Halifax are very limited and will only benefit a small number of borrowers. Halifax needs to offer more "treats" and fewer "tricks" for existing customers, who are struggling with their mortgage payments.
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Platinum
Elliott Culley
Director at Switch Mortgage Finance
Halifax are already relatively competitive in other areas of the market and until other lenders displace them, they will be picking up business. From a cynical viewpoint, why would they reduce rates further if they are already competitive?
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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
What's most exciting about this announcement today is what it could mean for BTL landlords soon. Now, landlords often get a bit of a bad rap, but they're the folks who provide rental homes to millions of Brits. And when Halifax makes changes like this, it's a bit like the sun peeking out on a gloomy day. You see, these tweaks to the resi rates are like canaries in a coal mine, and they're singing a sweet tune at the moment. When Halifax gives a positive nod to New Build properties, it is a signal that the market is starting to become ripe for investment, especially for those eager beaver BTL landlords who have been driven out of the market due to adverse lending conditions and government overreach for years now. With the current market being as unpredictable as our weather, Halifax is providing a bit of sunshine. Their announcement is a lovely surprise in a box of crackerjack. It's great for first-time buyers, property developers, and a promising omen for landlords alike.
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Premium
Denni Tyson
Mortgage and Protection Advisor at Henchurch Lane Financial Services
It's a pleasant morning with Halifax now reducing rates, even though it's on their new build and product transfer range. The decrease in the new build range may be the start of a domino effect with other lenders doing the same. New build purchases need to increase and perhaps rate reductions may make some of them more affordable for first-time buyers or home movers. But it's all positive news and a flurry of reductions is music to the ears of brokers and borrowers alike.
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Gary Boakes
Director at Verve Financial
Halifax existing customer rates have been slightly higher than expected over the last month, so this great news for existing customers, but given they are bespoke to each customer we don’t have any clear ideas how good these rate reductions are, so the positive headlines may not be as good as first thought. We'll find out tomorrow.
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Steven Hargreaves
Mortgage and Protection Adviser at The Mortgage Co
That is 2 lenders today dropping their rates, looks like it's treats all around for Halloween 2023.
Lenders all seem to be struggling with new business and need to look at their Q1 2024 completions.
Hopefully, the reductions in product transfers will help existing clients whose current low rates are coming to an end soon, and the wider cuts will start to stimulate the housing market.
Let the Pricing War continue