Halifax’s latest fixed rate cut is a “lifeline for first-time buyers”, The Mortgage Expert's Darryl Dhoffer has claimed.
Dhoffer’s comments come after the lender announced it would be making cuts across its fixed mortgage range including to its 5-year 95 per cent LTV product with a £999 fee, which has seen rates reduce to 5.72 per cent.
Reductions were also announced to its 5-year up to 75 per cent LTV which has no fee, with rates now at 4.96 per cent.
Dhoffer explained that this was a “lifeline” as first time buyers with 5 per cent deposits can now obtain a rate of 5.72 per cent.
“I have not seen a sub-6 per cent deal with a 5 per cent deposit for some time. Long may this continue,” he stated.
He additionally issued a call to action: “Consumers who are still hesitant should grab these deals now, as we all know how quickly things can change.”
Other brokers were similarly positive about the announcement such as R3 Mortgages director, Riz Malik, who commented: “Halifax have come out fighting with their new wave of rate cuts as if they wanted to remind us they are the UK’s biggest lender.”
Malik added that it will hopefully inject some confidence into the market, “which it desperately needs”.
A similar sentiment was shared by Yellow Brick Mortgages managing director, Stephen Perkins, who described the announcement as “very welcome news for all homeowners”.
He explained: “Following earlier announcements of rate reductions from other lenders, the UK's largest mortgage lender is now doing the same as lenders continue to compete for market share.”
The Mortgage Co mortgage and protection adviser, Steven Hargreaves, added: “More evidence, if required, that the rate war is on, as this is two rate reductions in a week for Halifax.
“This can only be good news and a huge relief for many many homeowners, that have deals coming to an end in the next few months and for first-time buyers to get a foothold in the housing market.”
Additionally, Lawson Financial mortgage and protection adviser, Michelle Lawson, said that the announcement was great news for consumers and shows confidence is growing in the market.
She added that it is “more important than ever before” for consumers to speak to good brokers who will constantly monitor the marketplace to ensure they get the best rates.
However, South Coast Mortgage Services director, Gareth Davies, commented that, while rate reductions are always welcome, he would have liked to see more cuts on remortgages as well.
“In a world where the purchase market is struggling, dropping purchase products only won’t change things for many,” he explained.
“Get the remortgage products down too, Halifax.”
Dimora Mortgages director, Jamie Lennox, showed a similar pessimism stating: “Unfortunately, these reductions are weak jabs that won’t excite the crowds to run out and get a mortgage.”
Instead, Lennox stated that the market needs a “challenger to step up with knock -out power reductions to entice potential buyers to return to the housing market”.
Thanks to the Newspage community for sharing their thoughts with FTAdviser.
tom.dunstan@ft.com
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