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Halifax Intermediaries issues new rates

ended 28. April 2022

The Halifax today published new rates that are due to come into effect from May 3rd 2022. For a number of products, rates are more than double than what they were a year ago. For example, from Tuesday a 2-year fix remo at 60% LTV with a £1499 fee will be 2.62%. In July 21, it was 1.26% for the same product.

  • Is this a definitive sign that people need to brace for rate shock?
  • What will this mean for the property market?

Any other thoughts, jot them down. deadline is ASAFP.

2 responses from the Newspage community

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Graham Cox
Director at Bridging Hub
"Many clients whose current ultra-cheap rate is coming to an end will get quite a shock when they come to remortgage. They see the Bank of England base rate creeping up but don't realise that lenders' mortgage rates are increasing by much more. Many people will have experienced some adverse credit recently, thanks to the pandemic, which means their new rate could be higher still. Some may even be left stranded on the lender's Standard Variable Rate. All the latest headlines from Halifax and Nationwide still paint a picture of business as normal, house prices continuing on their inexorable rise. But I think we could see a very dramatic sea-change in the autumn."
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Rob Gill
Managing Director at Altura Mortgage Finance
"Mortgage rates are spiralling ever upward at the moment with major lenders repricing by the day. Several major lenders have matched Halifax in now having core rates such as 2 and 5 year fixes at more than double the lows of last Autumn. Even the Chancellor is issuing dire warnings of four digit increases in mortgage payments for borrowers, a clear sign that concern is spreading about the impact this will have on homeowners. "Where this inexorable rise in interest rates can continue in the face of the overall cost of living crisis is far from certain. If the squeeze continues, lenders will start competing for scarcer new business, and eventually the Bank of England will have to ease back on the current cycle of base rate rises."