Halifax is the latest lender to cut mortgage rates, including a new two- and five-year best buy solution.
- Your cheapest five-year fixed rate will be 4.73% with a fee of £999
- Halifax’s cheapest two-year fix will be 5.24% with a fee of £999
Halifax is the latest lender to announce it will cut its mortgage rates, in a move that could bring more joy to struggling homebuyers.
Starting Monday, its changes will include two new best buys that will be available to movers with large deposits.
Its cheapest five-year fixed rate will be 4.73 per cent with a fee of £999, while its cheapest two-year fixed rate will be 5.24 per cent with a fee of £999.
Rate cut: Halifax has become the latest lender to cut its mortgage rates, bringing more joy to struggling homeowners.
However, both deals will only be available to borrowers with at least a 40 per cent deposit (60 per cent loan-to-value ratio). As always, it’s worth speaking to a mortgage broker to check eligibility.
Someone buying a £350,000 home and requiring a £200,000 mortgage could be eligible to apply for Halifax’s cheapest offer.
In this example, a £200,000 mortgage repaid over 25 years would cost them £1,138 a month if fixed for five years, or £1,197 if fixed for two years.
Both Halifax deals will be slightly better than Nationwide’s cheaper deals. The building society announced widespread cuts on Tuesday and is currently the market leader.
Nationwide’s cheapest five-year solution fell 0.2 percentage points to 4.74 per cent, with an origination fee of £999.
Halifax has also launched new deals for those borrowers purchasing with smaller deposits.
For example, those who buy with a 25 per cent deposit (75 per cent loan-to-value) will be able to get a rate of 5.29 per cent if fixed for two years, or 4.82 per cent if fixed for five years.
Both deals are again slightly cheaper than the next best deals on the market.
Nicholas Mendes, mortgage technical director at John Charcol, welcomed the news and says he hopes more lenders will follow suit in the coming weeks.
‘Halifax has shown real intent with this latest fixed rate reduction, at 4.73 per cent for five years fixed, a real head-turner.
“This is great news and is expected to slowly approach 4.5 percent by the end of October.”
