On Monday, the Halifax is launching the lowest ever 2-year fixed rate, at 0.83% up to 60% LTV. It's also launching a 5-year fixed rate at 1.03% and a 10-year fix at 2.07%. Below are a selection of alert_responses from brokers around the UK….
7 responses from the Newspage community
"The latest rates from the Halifax are stupendously low. I've never seen anything like this in all the years I've been broking. "What this really tells us isn't that lenders are wanting a rate war, more that lenders are as keen as mustard to get super low risk business on their books, probably to balance out the higher LTV lending they've had their hands forced into. "Like most brokers, I'm grateful this has come from a great lender like Halifax who are easy to deal with, have sensible lending criteria and are offering fantastic rates both with and without fees, depending on your circumstances."
"If you have got the deposit or equity in your home to take advantage of these deals then great, why wouldn't you? However, as with all things, the devil is in the detail and it's very easy to get carried away by a sexy headline rate and miss the nuts and bolts. For example, is there a set-up fee, is there a valuation fee, what about legal costs, is there any cash back? "While a sub-1% rate grabs the headlines any benefit can soon be gobbled up by the fees if you're not careful. It may not be quite as glamorous, but a slightly higher interest rate deal with no fees could actually be the better deal for some borrowers. It will all depend on the size of the mortgage and the amount of your equity or deposit."
"The only caveat to this product is that your loan-to-value is 60% or below. Other than that, anyone that meets standard criteria with a good credit history will be eligible to apply. "These rates are unlikely to be around for long and there is not much room for them to get any lower so it really is worth considering fixing your rate for a longer period. As ever, speak to a broker to discuss your options."
"One word: wow! Where the UK's largest mortgage lender goes, others will surely follow. As ever, though, these headline grabbers often come with significant set-up fees and the Halifax are about the only high street lender still charging for a basic valuation, which means that for many people the cheapest deal overall often lies elsewhere. Speak to a broker and they'll be able to work out whether this product is right for you almost instantly."
"This is the latest salvo in the lender rate wars, and fixed rates are not a silver bullet. For too long, UK mortgage holders have paid a loyalty penalty when their fixed rate comes to an end, and are switched onto a lender's costly standard variable rate, and as a result, overpay £5.3 million in interest. "But homeowners have more power than they realise, and can make the market work in their favour by seeking advice from a qualified adviser to ensure they really are on the best deal - and possibly switching to save thousands."
"This rate is fantastic and with a maximum loan size of £1m, it will be available for a number of people. This will have a lot of interest and I expect Halifax to be inundated with new business. It is a great time to get a competitive rate as a number of lenders have reduced theirs recently. The question is, how low will they go?"
"These are absolutely outstanding products across both two- and five-year fixed rate deals. I predicted a rate war when HSBC launched market leading products in June, and with Nationwide and now Halifax offering sub-1% deals, the market is becoming fiercely competitive between lenders as the housing market shows its first signs of slowing down. "With their flexible underwriting and sensible approach to lending, the Halifax should take the market by storm over the coming weeks with these new products." Whilst the rate war between lenders continues to drive interest rates down, like all good things this will come to an end shortly. For those in a position to buy or remortgage now, you are in an enviable position of all other mortgage holders in the UK!