Halifax has made reductions across its range of five-year fixes by up to 0.3 of a percentage point for first-time buyers and home-movers, while lowering the maximum fee to £495.
At between 60 per cent and 75 per cent LTV, five-year fixes have been lowered by 0.2 of a percentage point with rates now available from 2.74 per cent with a £495 fee. The rate for the fee-free option is 2.94 per cent.
The fixed rates have been cut by 0.3 of a percentage point to 3.04 per cent at between 75 per cent and 80 per cent LTV, with a £495 fee, or 3.24 per cent without a fee.
A 0.3 percentage point reduction is also applicable to five-year fixes at between 80 per cent and 85 per cent LTV.
The product is now available from 3.54 per cent with a £495 fee, or 3.74 per cent fee-free.
In addition, at between 85 per cent and 90 per cent it has been cut from 4.24 per cent, with rates now available from 3.94 per cent, again with a £495 product fee, or 4.14 per cent without a fee.
Furthermore, the maximum loan available has been increased to £1m on home-mover, first-time buyer and remortgage zero-fee products between zero to 60 per cent and 60-75 LTV.
Provider view
Halifax mortgages director Craig McKinlay said: “The reduction of rates within the five-year range will support borrowers’ needs for long-term stability, and demonstrates our ongoing dedication to helping home-movers and first-time buyers looking to save money by taking out a mortgage with Halifax.
“The removal of products with fees above £495 will allow more customers to benefit from a competitive mortgage with a zero fee option.”
Adviser view
Alex Reynolds, IFA at London-based Advies Private Clients, said: “I wouldn’t say that the loan between 60 and 75 per cent is market-leading or the most competitive. You have loans at around 65 per cent LTV fixed over the same period at around 2.5 per cent.
“However, Halifax is a big name lender. They are quite efficient in what they do, and get everything done quickly.
“Rates are still incredibly low across the board at the moment. There is going to come a time where rates will go the other way. The Bank of England has hinted that it will happen in the near future. I do not think that house prices are going to plummet, so people will end up paying a higher rate of interest for the same mortgage in a year or two.”
Charges
Charges range from £0 to £495.
Verdict
Reduced rates are always a good thing when it comes to mortgages. Here, the rates offered by Halifax are certainly not market-leading. There are a number of building societies offering similar products at lower rates. However, Halifax is a household name lender with clout.
BoE governor Mark Carney’s recent hint that the rise in base rates could go up before the end of the year is great news for savers, but not for consumers in the mortgage market. Lenders are likely to see an increase in demand for their fixes as the year approaches its end from people who are looking to escape interest rate hikes.
