Halifax launches “bold” home loan change | | U.Ok.Finance News
The battle for Britain’s mortgage debtors has dramatically intensified as Halifax, the UK’s largest mortgage lender, slashed charges and launched a market-leading two-year fixed deal at simply 3.79%.The eye-catching product – accessible from at present – is geared toward new clients borrowing £250,000 or more, with up to 60% loan-to-value, and comes with a hefty £1,999 price.It is an element of a raft of new sub-4% choices that might spark a recent wave of rate-cutting by rival banks.Other new Halifax offers embrace a two-year repair at 3.90% with a £999 price, and a five-year repair at 3.98% – again with a £999 price. However, the cheaper choices are presently reserved for new debtors, with current Halifax clients typically dealing with steeper charges relying on their present equity ranges.Industry consultants say the transfer may help jolt the housing market back to life after a slowdown in mortgage approvals.Stephen Perkins, Managing Director at Yellow Brick Mortgages, hailed the announcement as a daring transfer. “This is a daring assertion of intent from the UK’s largest mortgage lender.”This 3.79% headline rate is market-leading and hopefully will instigate another round of rate cuts from those high street lenders not wanting to be left behind.”His views were echoed by Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management, who told Newspage: “The three-month dip in mortgage approvals for house purchase, which the Bank of England confirmed today, may soon be reversed if mortgage rates continue to edge down as they are. It’s getting increasingly competitive by the day on the mortgage front, which will be music to the ears of borrowers.”Tony Castle, Managing Director at PFG Mortgages, declared: “The rate war is seriously heating up in the mortgage market, with the Halifax the latest to lender to enter the fray. Following recent moves by several major lenders to reduce their rates, Halifax has now cut its own to market-leading levels.”This aggressive pricing shift alerts intensifying competitors amongst high avenue banks, with debtors set to benefit as lenders combat for consideration in a cooling market.”While the charges are enticing, brokers urge debtors to look past the headline figures. Justin Moy, Managing Director at EHF Mortgages, famous: “Mortgage charges have hit a new low with these merchandise from the Halifax, however the bigger price of £1999 must be fastidiously thought of earlier than committing to the headline-grabbing fee.”Rates are creeping down slowly but surely, and many High Street lenders are now offering sub-4% deals for those with the largest deposits or equity. However, you don’t have to commit to 5-year terms, with many 2-year deals now cheaper than equivalent 5-year options.”Others suggest Halifax’s move may pressure rivals to follow suit. Hannah Bashford, Director at Model Financial Solutions, said: “The rate war is officially raging. It’s great to see the UK’s biggest lender putting out some market-leading rates and helping not only those looking to purchase but people needing to remortgage, too.”Jack Tutton, Director at SJ Mortgages, added: “The mortgage market is really hotting up and Halifax have stolen the march with their latest cuts.”Their headline fee of 3.79% will probably be a recreation changer and can make different lenders take into account their pricing. The fee that lenders are slicing rates of interest over the previous week will probably be gratefully welcomed by mortgage holders and can enhance the property market. The hope will probably be that the cuts we now have seen aren’t simply a mini heat wave however will set in for the entire summer time.”Aaron Strutt, Product and Communications Director at Trinity Financial, stated lenders are scrambling to remain aggressive. “Lenders are constantly sending out rate change announcements at the moment, telling us they are lowering their rates. The cost of funding mortgages is still decreasing, which means lenders can offer more competitive rates. There is a selection of lenders fighting it out to the top of the best buy tables, including HSBC, Halifax, Barclays and NatWest.”
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