Halifax 2-year and 5-year fixed mortgage products increase
Halifax announced yesterday an increase in interest rates across its 2-year and 5-year fixed mortgage products. Borrowers will see rate hikes ranging between 0.11% and 0.24%, effective immediately. The changes come as part of a broader shift in mortgage pricing, with Halifax also raising rates on selected products in its product transfer and further advance categories. This rate adjustment follows closely on the heels of Barclays, which increased its mortgage rates just yesterday. In this blog we will run through what the changes announced are, and what the outlook for the rest of the UK mortgage market might be.
Changes To Halifax 2-Year And 5-Year Fixed Mortgage Products
These consecutive rises by major lenders are expected to impact a wide range of borrowers, particularly those looking to remortgage or extend their existing mortgage terms. Halifax’s decision to adjust rates is likely to send ripples through the UK mortgage market, as homebuyers and existing borrowers may face higher monthly repayments. The increases come amid continued economic uncertainty, with inflation pressures and speculation around future Bank of England base rate decisions keeping the market on edge.
Commenting on Halifax’s rate adjustments, our managing director at Oportfolio Mortgages, Oliver Whitehead said, “The rate increases announced by Halifax are part of a wider trend we’re seeing from UK lenders as they adjust to evolving market conditions. Over the next two months, leading into 2025, we could see more lenders follow suit. However, there are still plenty of lenders offering low rates and products…you just need the help of an expert whole of market mortgage broker to find them.”
Oliver also points to the growing challenge for borrowers: “For those looking to remortgage or secure new deals, these changes mean higher monthly costs. Borrowers should consider their options carefully, as we could see further rate increases if inflation remains persistent or economic forecasts shift towards a prolonged period of higher interest rates.”
Outlook For The Mortgage Market
The Halifax rate increases reflect the growing caution in the mortgage lending space as economic indicators continue to fluctuate. With both 2-year and 5-year fixed deals becoming more expensive, borrowers may have to weigh whether to lock in current rates or wait for potential future shifts in the market. As the end of 2024 approaches, market analysts and brokers alike will be watching closely for any further rate adjustments, particularly as lenders react to inflation data and potential changes to the Bank of England’s monetary policy. With the uncertainty surrounding the UK’s economic outlook, borrowers are urged to stay informed and proactive in reviewing their mortgage options.
Speak To A Mortgage Advisor
Halifax’s latest move highlights the pressures being felt across the industry and raises the possibility that other major lenders may follow a similar path, reshaping the UK mortgage landscape heading into 2025. If you or anyone you know is thinking of getting a mortgage in 2025, please give our team of expert mortgage advisors a call to talk through your options. We are here to help.
