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"Intriguing innovation" as Halifax launches new 1.5 year term fixed rate remortgage products

ended 27. November 2024

In what one broker has described as an “intriguing innovation”, Halifax has today announced the launch of a new 1.5 year term fixed rate remortgage product, which will go live tomorrow. It says the customer must use their own conveyancer and that the remortgage conveyancing service does not apply to these products. The product includes a £250 cashback. Newspage asked brokers for their thoughts on this, below.

14 responses from the Newspage community

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David StirlingVerified
Independent Financial Advisor at Mint Wealth
Halifax have produced a product for headlines rather than aimed at customers. The reality is that by the time any application completes you'll be nearer the 2-year mark, and by not offering free legals it doesn't sound like a particularly attractive product. It's confusing as to why they've bothered as the demographic for this product will be miniscule.
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Harps GarchaVerified
Director at Brooklyns Financial
This is an innovative step forward by the Halifax. However, what's particularly puzzling is the absence of 1-year fixed rate options. Are they anticipating something on the horizon that we mere mortal brokers aren’t privy to? It raises questions about whether this move reflects deeper market insight, or if it’s simply a reaction to current market conditions and demand.
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Jack TuttonVerified
Director at SJ Mortgages
This is an intriguing innovation from Halifax and it will be interesting to see how well it is received. With the forecasted base rate reductions for next year, we have seen a rise in the number of people looking for shorter fixed rate products. They are not always comfortable with the risks involved with some variable alternatives that may offer the flexibility to review your mortgage in the short term. It is interesting that they have only offered this to customers looking to remortgage their home. This must be down to them understanding that rates are higher than what many are used to. This product will allow them to review their mortgage at an earlier opportunity in the hope that interest rates are lower, which could be very attractive to some.
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Tony CastleVerified
Managing Director at PFG Mortgages
We often see smaller building societies coming out with niche products in the market, so it great to see Halifax bring this 1.5 year fixed rate to the market. It could be very well suited to borrowers not wanting to fix for a prolonged period.
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Iain SwattonVerified
Director at Exemplar Financial Services
Halifax’s 1.5-year fixed rate seems like a savvy play for borrowers betting on future rate cuts without committing to a long-term fix. By skipping free legals, Halifax appears to be weeding out speculative applications, but the cashback offer softens the blow for genuine borrowers. It's a calculated move that offers flexibility and shows Halifax is tuned into market sentiment. The question now is whether borrowers are ready to buy into this short-term strategy.
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Craig FishVerified
Director at Lodestone Mortgages
From one of the UK’s largest lenders, this product launch poses more questions than answers. What on earth are they expecting to happen mid-2026, to be offering a 1.5 year fixed rate? Maybe they know something that we don’t.
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Ranald MitchellVerified
Director at bad credit mortgage specialists Charwin Mortgages
Innovation and flexibility are exactly what the mortgage market needs right now, and Halifax has just raised the bar. The launch of their 18-month fixed-rate mortgage offers a lifeline to those navigating today’s uncertainty, providing the chance to lock in for a shorter period and reassess their options sooner. It's a savvy move by a major player, clearly responding to growing demand for greater choice. That said, competitive pricing will be key to its success, especially when up against the popular two-year fixes already dominating the market.
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Rohit KohliVerified
Director at The Mortgage Stop
It’s great to see innovation from a major lender like Halifax. This 1.5-year fixed product is clearly designed for those hoping rates will fall in the next couple of years, giving them flexibility without committing to a long-term deal. However, the devil will be in the detail—particularly around exit fees—which will determine how appealing this option really is.
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Stephen PerkinsVerified
Managing Director at Yellow Brick Mortgages
This shorter-term fixed rate may be useful to those looking to move home shortly, but otherwise this doesn’t seem revolutionary or something that will be in high demand.
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Dariusz KarpowiczVerified
Director at Albion Financial Advice
In an innovative move that reflects current market uncertainties, Halifax has introduced a distinctive 1.5-year fixed-rate remortgage product, complete with a £250 cashback incentive. This unconventional term length offers borrowers a fresh alternative to traditional fixed periods, though they'll need to arrange their own conveyancing rather than using Halifax's standard remortgage service. This strategic product launch appears well-timed, providing homeowners with a pragmatic middle ground between variable rates and longer-term fixes during a period of interest rate volatility. While the 18-month term might raise a few eyebrows in the mortgage industry, it could well prove to be a trendsetter, with other lenders potentially following suit or even introducing 12-month fixed options. The product effectively bridges the gap for borrowers who are hesitant to commit to standard two or five-year terms while awaiting more stability in the rate environment.
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Justin MoyVerified
Managing Director at EHF Mortgages
I must admit I haven't seen any clients looking for an 18-month product, whereas the market is really looking for cheaper rates. The difficulty with this kind of product is that our sourcing software typically works on products with 2, 3, 5, or 10-year terms for comparison, so this product line will easily be forgotten or not shown at all. There may be other better opportunities for Halifax to innovate, this one might be difficult to justify.
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Simon BridglandVerified
Director at Charwin Private Clients
This could be a square peg in a round hole, without a decent benefit for the consumer. Given that the borrower will have to employ a solicitor rather than have use of a free conveyancing service, it will most likely drive up the overall cost a little, as the cashback of £250 barely covers the basic like for like remortgage costs. Quite what Hallifax think will be happening in 18 months' time is anyone’s guess unless they are privy to info the rest of the market isn’t.
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Ben PerksVerified
Managing Director at Orchard Financial Advisers
Puzzling but pleasing. I love seeing innovation and new products being thought up so I won’t tear the idea apart, but I struggle to see what problem this is solving. A 6-month saving on re-assessing mortgage options in the future could be beneficial, but I’m yet to have a client crying out for this over other things. Still, it’s another option on the table for which I’m thankful.
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Elliott CulleyVerified
Director at Switch Mortgage Finance
I can't imagine there will be a huge uptake on this product. I have not had clients asking me for this type of product in the past so we shall see how it fares. It will depend on the pricing, but if it is more expensive than a 2 year fixed and the fees are high, i can imagine most will want to stick with the more traditional product.