Halifax is making changes for fixed rate mortgage customers

Halifax has just announced rate cuts of up to 0.19% on 2 and 5 year fixed rate products for both first-time buyers and movers. The changes will take place on Friday, May 24, and impact on home mover and first-time home products, the bank said.

Speaking to Newspage, Michelle Lawson – Director at Lawson Financial – said: “This is a small but welcome offer from Halifax, especially after this morning’s higher-than-expected inflation data, and has the potential to trigger further rate cuts rates by competitors.

“Halifax followed Coventry Building Society in cutting, so I suspect we will see more rate cuts from lenders in the coming days.” Elliott Culley, director at Switch Mortgage, said: “Get these rates while you can. The calmer market we’ve had in recent weeks has led to these changes from Halifax.

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“However, with the latest inflation numbers coming in higher than expected, don’t be surprised if these rates disappear by next week.” Justin Moy, managing director at EHF Mortgages, said: “This is a very timely cut by Halifax, albeit a reaction to lower swap rates rather than forecast inflation earlier today.

“This is another lender prioritizing home movers and first-time buyers to give the housing market a bit of a boost, but sadly neglecting those existing borrowers who need to remortgage. Hopefully these loyal borrowers will feel the financial benefit soon.”

Harps Garcha of Brooklyns Financial said: “In a bold move that defies gloomy inflation and CPI figures, Coventry Building Society and Halifax have announced rate cuts, signaling a long-term strategic vision in the financial sector.

“With the industry’s eyes on the future, these adjustments may encourage more lenders to adopt similar strategies, boosting a positive outlook for mortgage borrowers.” Ranald Mitchell, director at Charwin Private Clients, said: “In light of positive comments from the IMF and encouraging inflation figures, it is reassuring to see a major lender like Halifax reducing mortgage rates. While the cuts are modest and unlikely to significantly boost consumer confidence on their own, the real recovery will depend on the Bank of England eventually cutting its base rate.”