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Halifax launches market-Leading 3.79% fixed rate: "The rate war is seriously heating up in the mortgage market"

Journalist: Justin Moy, Contributing Editor

ended 01. May 2025

Halifax has announced a number of rate cuts as part of their refreshed range, live from Today (1st May). Grabbing the headlines is the lender's 3.79% fixed 2-year product, up to 60% Loan to Value and with a £1999 Product Fee. This is for mortgages of £250,000 or more. Other sub-4% Deals include a 3.90% Fixed 2-year product with a £999 Fee, and a 3.98% Fixed 5-year product with a similar fee. These deals are for new borrowers; existing Halifax mortgage holders are currently offered more expensive options, subject to their current loan-to-value ratio. Newspage asked brokers for their views, below.

 

8 responses from the Newspage community

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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
The three-month dip in mortgage approvals for house purchase, which the Bank of England confirmed today, may soon be reversed if mortgage rates continue to edge down as they are. It's getting increasingly competitive by the day on the mortgage front, which will be music to the ears of borrowers.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
This is a bold statement of intent from the UK's largest mortgage lender. This 3.79% headline rate is market-leading and hopefully will instigate another round of rate cuts from those high street lenders not wanting to be left behind.
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Tony Castle
Managing Director at PFG Mortgages
The rate war is seriously heating up in the mortgage market, with the Halifax the latest to lender to enter the fray. Following recent moves by several major lenders to reduce their rates, Halifax has now cut its own to market-leading levels. This aggressive pricing shift signals intensifying competition among high street banks, with borrowers set to benefit as lenders fight for attention in a cooling market.
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Justin Moy
Managing Director at EHF Mortgages
Mortgage rates have hit a new low with these products from the Halifax, but the larger fee of £1999 needs to be carefully considered before committing to the headline-grabbing rate. Rates are creeping down slowly but surely, and many High Street lenders are now offering sub-4% deals for those with the largest deposits or equity. However, you don't have to commit to 5-year terms, with many 2-year deals now cheaper than equivalent 5-year options.
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Aaron Strutt
Product and Communications Director at Trinity Financial
Lenders are constantly sending out rate change announcements at the moment, telling us they are lowering their rates. The cost of funding mortgages is still decreasing, which means lenders can offer more competitive rates. There is a selection of lenders fighting it out to the top the best buy tables including HSBC, Halifax, Barclays and NatWest.
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Jack Tutton
Director at SJ Mortgages
The mortgage market is really hotting up and Halifax have stole the march with their latest cuts. Their headline rate of 3.79% will be a game changer and will make other lenders consider their pricing. The rate that lenders are cutting interest rates over the past week will be gratefully welcomed by mortgage holders and will boost the property market. The hope will be that the cuts we have seen aren't just a mini heat wave but will set in for the whole summer.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
While Halifax's headline-grabbing rate of 3.79% is good news, the caveat is that you have to pay a £1999 product fee to get it. This could put some potential borrowers off, and could be an indication of where the market is heading, with lenders offering lower rates, but with a hefty fee to boot. Still, this is good news and a clear sign that we are right in the middle of a rate war that shows no signs of slowing down anytime soon.
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Hannah Bashford
Director at Model Financial Solutions
The rate war is officially raging. It's great to see the UK’s biggest lender putting out some market-leading rates and helping not only those looking to purchase but people needing to remortgage, too.