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Halifax goes sub-4%: "All of these cuts are really starting to drive demand"

ended 08. August 2024

Halifax has today announced cuts on selected products of up to 0.16%. Highlights include a 5-year fixed rate at 3.99% with £999 fee up to 60% LTV and 2-year fixed rate at 4.36% with £999 fee up to 60% loan-to-value (LTV). Newspage asked brokers for their views, below.

8 responses from the Newspage community

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Ken James
Director at Contractor Mortgage Services
Another big lender joins the sub-4% club, and while this is great news and we love a sub-4% deal, it won't be available to the masses who do not have access to larger deposits. For the standard client who has struggled to possibly raise a 10% deposit this will not give them any relief financially. However, it's been a big news day for Halifax with them also announcing that they will open up the doors to non-sterling income. What a difference a day can make. Let's hope with the market shift looking much more positive, some of these lenders grab the bull by the horns and start lowering the higher loan to value rates.
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Jack Tutton
Director at SJ Mortgages
These cuts continue to push the market in the right direction. Halifax's cuts are for home movers and first-time buyers, with the lowest rates at 60% loan to value. More could be done, however, for products requiring a smaller deposit. It is people with these levels of deposit that are the key to getting more impetus back into the property market.
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Andrew Montlake
Managing Director at Coreco
Lenders large and small are starting to shave rates every day now. This morning we had a new lender, April Mortgages, cut its rates and now we have a high street leviathan in the Halifax following suit. All of these cuts are really starting to drive demand and the prospects for the second half of the year look very promising.
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Patricia McGirr
Founder at Repossession Rescue Network
Right on target but still wide of the mark. Rate drops are always welcome for borrowers and well done Halifax for getting onboard, but when will lenders get the message and extend favourable fixed rates to those with higher loans to value? We've been encouraged to borrow the max to buy homes, but when money is tight, the borrower is penalised. The school report here says, 'Good start, but must do better.'
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Michelle Lawson
Director at Lawson Financial
Halifax are joining the low rate party as they also go sub-4%, as well as adding foreign income from selected countries. Expect more lenders to come onboard as swap rates are finally coming down. We are on the cusp of a market change so buyers should be looking at acting sooner rather than later.
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Darryl Dhoffer
Founder at The Mortgage Geezer
Halifax have thrown themselves into the ring now, with a 5-year fix at 3.99% and a 2-year at 4.36%. Some may say, based on bigger reductions from their competitors, it's like throwing a pillow in a heavyweight bout, but history tells us that Halifax stay the distance when other lenders may withdraw rates at the toss of a coin.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Halifax, although late to the dance, still wants to tango. Lenders need to be careful they are not too slow in reacting to their competitors' repricing or face being the last one on the dancefloor. This has certainly been a positive week for the mortgage market.
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Ben Perks
Managing Director at Orchard Financial Advisers
Halifax finally hammer home a sub-4% rate. It's a delight to see rates starting with a 3 again, and long may they continue. Let the race to 3.5% commence.