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Halifax cuts remortgage rates by up to 0.35%: "These significant reductions will cure the New Year blues for many borrowers"

Journalist: Justin Moy, Contributing Editor

ended 31. December 2024

Halifax has today announced rate cuts of up to 0.35% for those remortgaging in early 2025. Following Leeds announcing rate reductions of up to 0.24% earlier this morning, Newspage asked brokers if this is a sign of things to come in January. Their views are below.

 

10 responses from the Newspage community

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Simon Bridgland
Broker at Charwin Private Clients
Halifax are the second lender to announce cuts to rates today alongside Leeds BS. Both lenders are ringing in the NYE celebrations with a welcome chorus of rate reductions. This will be seen as an indicator to the type of New Year the mortgage market will see. Perhaps the UK mortgage market will have something to look forward to in 2025, after the disastrous end to 2024 following the Chancellor’s fiscal tinkering.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
As the Met office is announcing storm warnings to start the year, Halifax are dishing out the sunshine for borrowers. The lender is determined to help those looking to remortgage in January start the year with a glow. These significant reductions will cure the New Year blues for many borrowers.
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Ken James
Director at Contractor Mortgage Services
Halifax and Leeds are starting the New Year off with firework displays of their own. I am certain other lenders will follow as they lock horns once the fight for business begins in earnest. It is a shame however that Halifax have decided to not pass on savings to the existing clients whose rates are about to expire in January. This would have turned good news into amazing news for those who could have shaved a bit more off their monthly mortgage costs.
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Darryl Dhoffer
Founder at The Mortgage Geezer
Halifax is the first big lender to fly out of the blocks in 2025, reducing interest rates for those remortgaging. This could be the catalyst for many other lenders to follow suit as lenders will want to start the new year positively. Expect more cuts from lenders later this week and next.
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Craig Fish
Director at Lodestone Mortgages
With recent news of 2025 being the year of the remortgage, it looks like Halifax are looking to make a positive start. With these cuts, they may well have just started a chain reaction.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Halifax is hungry for business knowing that 2025 is going to be a big year for mortgage renewals. However, these January deals could be short lived if the market doesn’t beat to the same drum.
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Justin Moy
Managing Director at EHF Mortgages
Early moves by Halifax and Leeds Building Society on New Year's Eve suggest a mini rate war will rage at the start of January, which can only be great news for borrowers. With huge numbers of borrowers looking for a new deal on their mortgage in 2025, it will be important to reserve deals whilst rates are favourable, and January will be an ideal time to take advantage. Other lenders will follow in the coming days without doubt.
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David Stirling
Independent Financial Adviser at Mint Wealth
Halifax follow closely on the heels of Leeds Building Society, as both look to start the eagerly anticipated 2025 mortgage rate race ahead. The New Year should see lots of competition between the lenders, as they try and take as much market share as possible before the April Stamp Duty changes, when things are likely to dampen in the mortgage world. This is great news for borrowers looking to buy or coming off fixed rates in the early part of the year, as rates could drop lower than they have been for while.
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Elliott Culley
Director at Switch Mortgage Finance
With 2025 upon us it's not surprising to see lenders want to start it off with a bang. Lenders will have targets they need to hit and will want to hit the ground running. Remortgages will be a big part of 2025 so it's likely we will see lenders putting more emphasis into this for 2025.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Halifax's rate cut feels like a New Year’s resolution we can all get behind—a bit of optimism to kick off 2025. A reduction of up to 0.35% is undoubtedly good news for those remortgaging, especially after a year where rate increases seemed like the unwelcome guest that wouldn’t leave. But is this a one-off gesture, or are we seeing the first steps in a broader trend of lender competition heating up? If it’s the latter, 2025 might just offer some much-needed breathing room for borrowers. That said, while this move is promising, the industry has taught us to balance excitement with a healthy dose of pragmatism. It’s an encouraging start, though, and if other lenders follow Halifax’s lead, we could see a more borrower-friendly landscape emerging. Let's hope this isn’t just a flash in the pan but the start of something more substantial for homeowners.