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Halifax the latest major lender to announce rate cuts: " The rate war is hotting up"

ended 10. September 2024

The Halifax has just announced that, from tomorrow, it is reducing rates on its 2- and 5-year home mover and first-time buyer products up to 90% LTV. Newspage asked brokers if this shows continued momentum in the battle for market share between lenders following yesterday's cuts by Barclays and TSB? Also, with swaps falling this week and expectations of a cut by both the Fed and ECB this month, will rates continue to edge down or should borrowers be wary of next week's inflation data? In short, could this window shut very quickly? Their views are below.

8 responses from the Newspage community

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Simon BridglandVerified
Director at Charwin Private Clients
When a large lender such as the Halifax announces a rate cut, everyone takes notice and waits with bated breath. The pause won’t mean you have to wait long as things will become clear tomorrow morning, once the rates are released. It is anticipated that both 5-year and especially 2-year deals should see some good decreases up to and including 90% loan-to-value products, which is great news for borrowers either buying for the first time or moving home.
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David StirlingVerified
Independent Financial Advisor at Mint Wealth
It's only Tuesday and another major lender has announced rate cuts. Halifax finally look to to be bringing their products closer in line with the competition. Although it's not clear how much exactly these cuts will be, this can only be good news for home-movers and first-time buyers, following the cuts by TSB and Barclays yesterday. How long this will continue is unclear. Next week's inflation figures could knock things either way.
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Ben PerksVerified
Managing Director at Orchard Financial Advisers
Halifax are keeping their hand close to their chest and using their best poker face as they announce reductions kicking in tomorrow. The rate war is hotting up and Halifax will unveil tomorrow morning just how eager they are for business. The lender is due a good cut and I’m hopeful they won’t disappoint as we start work tomorrow. Fingers crossed for a headline grabbing rate.
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Gabriel McKeownVerified
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
It's a game of ‘Simon Says’ in the mortgage world, and this time, he’s telling lenders to "keep cutting your rates". With the great mortgage rate limbo in full swing, there is growing optimism among homeowners and prospective buyers, with reductions offering financial relief to many struggling to transition from historically low rates. However, with the Bank of England's base rate remaining stable at 5%, the move suggests Halifax are relying on falling swap rates, which directly impact mortgage pricing more than the base rate itself. So, although the latest set of rate cuts light a path through the uncertainty for borrowers, the fog of economic instability is ever present.
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Dariusz KarpowiczVerified
Director at Albion Financial Advice
The Halifax are keeping the momentum going. This is definitely the right direction, with major lenders like Halifax, Barclays, and TSB all cutting rates this week. Is this ahead of a Bank of England base rate cut? Let’s hope so. The more competition we see, the better it gets for borrowers. But with inflation data lurking around the corner, it’s worth watching closely. Any bad news on the inflation front could spoil the party.
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Justin MoyVerified
Managing Director at EHF Mortgages
Whilst the actual benefit is somewhat guarded, any rate cuts from the largest UK lender will always be newsworthy. Homemovers and first-time buyers are the main beneficiaries, so Halifax is helping more borrowers afford their ideal homes. We will likely see further base rate cuts in the coming months, as the margin between the base rate and equivalent fixed rates is ever-widening and needs to narrow soon.
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Tony CastleVerified
Managing Director at PFG Mortgages
More rates reductions, this time Halifax helping first time buyers and home movers. Banks and Building societies are in fierce competition to be competitive with rates which is a huge benefit for the mortgage and housing market.
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Elliott CulleyVerified
Director at Switch Mortgage Finance
Further rate reductions from Halifax today show there is strong confidence among lenders currently as to the state of the economy and their predictions for the end of the year. It is great to see renewed confidence and with three major lenders making reductions already this week, it shows the competitiveness of the current market.