Reduced Mortgage Rates Offer: Major Bank Now Offers Best Buy at 3.79%; Check Eligibility Here
Cheapest Two-Year Mortgage Fix Now in Halifax's Hands
Halifax has taken the spotlight, slashing its two-year fixed rate for remortgagers from 4.1% to an unbeatable 3.79%. This move has earned them the title of the best buy.
It's not just Halifax; several banks and building societies are now offering rates under 4% for remortgagers and those buying with a substantial deposit or equity. The alluring 3.79% rate applies to mortgages of £250,000 or more, with a deposit of at least 40%. This translates to a home worth a whopping £417,000 for those considering a remortgage. The deal comes with a hefty fee of £1,999.
Borrowers need to be mindful while choosing their deal, as the fee might add to the long-term cost if not calculated carefully. Use This is Money's true cost mortgage calculator to weigh rates and fees effectively. It's essential to note that rates for existing Halifax customers are slightly higher. NatWest offers the next-cheapest deal at 3.88% for the same circumstances but with a lower fee of £1,495. HSBC, too, offers 3.88% on a two-year fix but only for customers with a Premier bank account.
Jack Tutton, director at Hampshire-based broker SJ mortgages, commented, "The mortgage market is heating up, and Halifax's latest cuts have left other lenders reconsidering their pricing. The 3.79% headline rate will significantly impact the market."
If you're after a five-year fix, Halifax offers a rate of 3.88% on the same terms (40% deposit and remortgagers with loans of £250,000 or more). Similarly, they have a £1,999 fee. Halifax also made a substantial reduction to its fee-free two-year fixed remortgage product for a 40% deposit, reducing it from 4.85% to 4.51%.
Lenders are lowering rates for various reasons, including the likelihood of further falls in the Bank of England's base rate and an effort to boost business amid concerns that the increase in stamp duty might slow the housing market. According to figures from the Bank of England, mortgage approvals for house purchases fell 1.2% in March, marking the third consecutive monthly drop.
Nick Maud, director of research at agent Savills, stated, "Activity peaked in October and December 2024, likely driven by first-time buyers rushing to beat the stamp duty nil-rate deadline. However, momentum has since tapered off." The prospect of further base rate cuts and the potential loosening of lending regulations may help stimulate demand in the coming months. Stay tuned for more updates!
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- Halifax's reduction in its two-year fixed rate for remortgagers to 3.79% has made it the best buy for those with mortgages of £250,000 or more and a deposit of at least 40%.
- Lenders are not just Halifax; several banks and building societies are now offering rates under 4% for remortgagers and those buying with a substantial deposit or equity.
- Investing in property through remortgaging can be an expensive venture, with Halifax's deal coming with a hefty fee of £1,999, and borrowers should consider the true cost using This is Money's calculator.
- In the business of personal finance, Halifax is not leaving its competitors behind, offering a five-year fix at 3.88% on the same terms (40% deposit and remortgagers with loans of £250,000 or more).
- Lenders are lowering rates for various reasons, such as the likelihood of further falls in the Bank of England's base rate and an effort to boost business due to concerns that the increase in stamp duty might slow the housing market.
