Halifax cuts mortgage rates by up to 0.1% as sub-5% deals hit the market again

By Douglas Patient ·

Halifax has cut its mortgage rates by up to 0.1% as sub-5% deals hit the market again and brokers told Newspage it is "positive news".

The lender announced selected rate reductions that will be available from Friday 9 October.

Halifax is offering Lloyds Premier customers a 0.2% discount on its standard fixed rates. 

This means Lloyds Premier customers can access a two-year fix at 4.90%, three-year fix at 4.87% and a 4.89% five-year fix.

This week sub-5% deals have started to come in across the market again.

Santander is offering a two-year fix at 4.92%, a three-year fix at 4.90% and a five-year fix at 4.93%.

Yorkshire Building Society has a 4.83% two-year fix, 4.92% three-year fix and 4.95% five-year fix.

Aaron Strutt, Product and Communications Director at London-based Trinity Financial, said there are now sub-5% fixes for borrowers to choose from.

He added: "Halifax is the latest big bank to announce rate cuts and there are rumours that there will be more pricing improvements coming from other large banks over the next few days. 

"Santander and Yorkshire Building Society are topping the best buy tables at the moment after bringing back more sub-5% fixes for borrowers to choose from. Just a few days ago it seemed like all of the sub-5% fixes would be pulled but now there are at least six lenders offering them. 

“This shows how quickly the mortgage market moves and why it is so important to monitor mortgage rates when you have a mortgage offer out so you can swap to cheaper rates if they suddenly appear.”

Gaurav Shukla, CEO at Marlow-based Home Me Mortgages, said this is positive news.

He added: "We are seeing lenders starting to chip away at mortgage rates, with reductions across two, three and five year fixes. Headline rates are looking better than last week, with some lenders now offering sub-5% deals across all three terms. For borrowers, this is positive news, but I would not get too hung up on finding the absolute lowest rate. 

"A 0.05% or 0.1% difference can be less important than the overall product, fees, flexibility and the borrower’s plans. The interesting part is that lenders are clearly competing for business. Halifax’s discount for Lloyds Premier customers and Yorkshire Building Society’s latest reductions show lenders are still willing to sharpen their pricing. 

"With rates changing almost daily, and further reductions potentially around the corner, borrowers should avoid waiting indefinitely for the perfect rate. If the mortgage works for you today, securing it does not necessarily mean you are stuck with it if rates improve before completion."

Jamie Elvin, Director at London-based Strive Mortgages, said a small cut isn't worth celebrating.

He added: "The return of sub-5% fixes is a welcome confidence boost, but borrowers won’t be throwing a party over a 0.1% cut. It’s progress, rather than a transformation in affordability. 

"5% is a psychological barrier, so breaking below it could encourage buyers who have been sitting on their hands. But the mortgage payment matters far more than the headline. The danger is that borrowers become fixated on waiting for the next cut. 

“Where lenders allow it, securing a deal and reviewing it before completion can offer breathing space without gambling everything on rates falling further. Product fees also matter: the lowest rate doesn’t always mean the cheapest mortgage.”

Matt Coulson, Founder at Rickmansworth-based Heron Financial, said the market is in a better place than two weeks ago.

He added: “This is the other side of the coin from a fortnight ago. Then the story was that sub-5% deals were vanishing and the average was heading for 6%; now a handful of lenders are nudging them back under five. That whiplash is the whole point. 

"Swap and funding-driven moves reverse about as fast as they arrive, which is exactly why I'd be wary of reading any single week as a trend, in either direction. I'd keep it in proportion, though. These are small cuts of around 0.1% from a few lenders, so it's competition and funding easing at the margin, well short of a race to the bottom. It's progress, and no more than that. 

"The bigger test is still the Budget on the 28th, because the bond market's reaction will decide whether this easing holds or snaps back. For borrowers, this is exactly why keeping your rate under review right up to completion matters, because in a market this twitchy it can move down as easily as up.”

ENDS


 

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The raw alert

The question we put to Newspage’s experts, and their answers.

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Lenders bringing back sub-5% fixes

ended 08. October 2026

Halifax Intermediaries
product changes – Friday 9 October 2026

 

Homemover and First time buyer


 

 

•
Selected rate reductions of up to 0.10% on 2,3 and 5 year fixed products.

 Current best buy mortgages include:

Santander is offering a two-year fix at 4.92%, a three-year fix at 4.90% and a five-year fix at 4.93%.

Halifax offering Lloyds Premier customers a 0.2% discount on it standard fixed rates. This means Lloyds premier customer can access a two-year fix at 4.90%, three-year fix at 4.87% and a 4.89% five-year fix. They may well be lower tomorrow!

Yorkshire BS has a 4.83% two-year fix, 4.92% three-year fix and 4.95% five-year fix.

 

 

 

6 responses from the Newspage community

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Star Quote
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Pro
Aaron StruttVerified
Product and Communications Director at Trinity Financial
Halifax is the latest big bank to announce rate cuts and there are rumors that there will be more pricing improvements coming from other large banks over the next few days. Santander and Yorkshire Building Society are topping the best buy tables at the moment after bringing back more sub-5% fixes for borrowers to choose from.
Just a few days ago it seemed like all of the sub-5% fixes would be pulled but now there are at least six lenders offering them. This shows how quickly the mortgage market moves and why it is so important to monitor mortgage rates when you have a mortgage offer out so you can swap to cheaper rates if they suddenly appear.
Copy

Pro
Jamie ElvinVerified
Director at Strive Mortgages
The return of sub-5% fixes is a welcome confidence boost, but borrowers won’t be throwing a party over a 0.1 percentage point cut. It’s progress, rather than a transformation in affordability. Five per cent is a psychological barrier, so breaking below it could encourage buyers who have been sitting on their hands. But the mortgage payment matters far more than the headline. The danger is that borrowers become fixated on waiting for the next cut. Where lenders allow it, securing a deal and reviewing it before completion can offer breathing space without gambling everything on rates falling further. Product fees also matter: the lowest rate doesn’t always mean the cheapest mortgage.
Copy

Pro
Tony SanchezVerified
Founder at Bridging Loan Directory
“Lower fixed rates are welcome, but the useful question is whether they change what a borrower can actually do.

“In Bridging Loan Directory’s recent reporting, brokers and lenders described cases where the mortgage available was too small to repay existing bridging finance. A cheaper rate may help, but the valuation, accepted income or rental income can still limit the amount available.

“For buyers, sellers and developers waiting for a transaction to move forward, the real test is whether these reductions help purchases and refinancing proceed. A handful of sub-5% deals alone won’t tell us that
Copy

Pro
Matt CoulsonVerified
Founder at Heron Financial
This is the other side of the coin from a fortnight ago. Then the story was that sub-5% deals were vanishing and the average was heading for 6%; now a handful of lenders are nudging them back under five. That whiplash is the whole point. Swap and funding-driven moves reverse about as fast as they arrive, which is exactly why I'd be wary of reading any single week as a trend, in either direction. I'd keep it in proportion, though. These are small cuts of around 0.1% from a few lenders, so it's competition and funding easing at the margin, well short of a race to the bottom. It's progress, and no more than that. The bigger test is still the Budget on the 28th, because the bond market's reaction will decide whether this easing holds or snaps back. For borrowers, this is exactly why keeping your rate under review right up to completion matters, because in a market this twitchy it can move down as easily as up.
Copy

Pro
Nouran MoustafaVerified
Practice Principal & IFA at Roxton Wealth
Seeing Halifax cut selected rates while Santander, Yorkshire Building Society and Halifax’s Premier offering are all competing below 5% is encouraging.

But borrowers should not confuse a handful of sharp deals with the whole mortgage market suddenly becoming cheaper. Average fixed rates are still around 6%, so these products are very much at the competitive edge.

What this does show is that lenders still want good-quality business and will move quickly when funding allows.

For buyers or remortgagers, I would not wait for the perfect rate. Secure the best suitable option available, then keep reviewing it before completion. If lenders cut again, you may be able to switch. If rates rise, you have already protected yourself.

In this market, optionality is worth a lot.
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Plus
Gaurav ShuklaVerified
CEO at Home Me Mortgages
We are seeing lenders starting to chip away at mortgage rates, with reductions across two, three and five year fixes. Headline rates are looking better than last week, with some lenders now offering sub 5% deals across all three terms.

For borrowers, this is positive news, but I would not get too hung up on finding the absolute lowest rate. A 0.05% or 0.10% difference can be less important than the overall product, fees, flexibility and the borrower’s plans.

The interesting part is that lenders are clearly competing for business. Halifax’s discount for Lloyds Premier customers and Yorkshire Building Society’s latest reductions show lenders are still willing to sharpen their pricing.

With rates changing almost daily, and further reductions potentially around the corner, borrowers should avoid waiting indefinitely for the perfect rate. If the mortgage works for you today, securing it does not necessarily mean you are stuck with it if rates improve before completion.