Mortgage rates below 4% from Halifax and other rate reductions (Source: www.experian.com)
This week has been another week filled with mortgage rate drops as lenders battle it out to gain new mortgage customers after shooting themselves in the foot with ridiculously high increases at the end of 2022. The most exciting news this week is definitely the re-introduction of mortgage rates below 4% interest to the mortgage market.
New Halifax Mortgage Rates Below 4%
This week, Halifax intermediaries (The broker only accessible arm of Halifax bank) announced that they would be introducing new 10-year fixed mortgage products below 4%. This comes after months of rates way above 4% from the popular high-street lender who, like most banks and building societies, pushed up their rates at the end of 2022. Halifax currently offers average rates on residential mortgages somewhere between 4 and 5% so seeing them start to offer sub 4% mortgage interest rates to their customers is an interesting and positive step in our opinion as mortgage brokers. Here is a roundup of the new products that Halifax are offering:
- A 10-year purchase fixed-rate repayment and interest-only product up to 60% LTV (40% deposit), with a £999 fee, at 3.99%. Minimum loan £25,000, Maximum loan £1m.
- And a 10-year purchase fixed-rate repayment and interest-only product up to 75% LTV (25% deposit), with a £999 fee, at 4.04%. Minimum loan £25,000, Maximum loan £1m.
As we’ve said, this seems to be a step in the right direction for Halifax and hopefully more products will come down to below 4% soon however, most mortgages are taken out on a 2 to 5-year fixed term basis. The idea being that in 2 to 5-years the average mortgage rate might have come down so that you can get a better rate when you remortgage or product switch. When taking a longer fixed period loan like 10 years, there is the risk that you could remain on a 3.99% interest rate for 10-years and rates could drop significantly. As you are fixed in for 10-years, you may have to pay hefty early redemption fees to switch to a lower rate early.
With anything like this, you should always consult a mortgage advisor before making any decisions as they will be able to help you make the right decisions and choose the right mortgage product and term for your circumstances.
Other Mortgage Rate Changes This Week
Another fantastic rate reduction seen this week came from Nationwide building society who released some products that had been reduced by up to 0.70%. Here is a breakdown of what they are now offering:
Remortgages
- Five-year fixed rate at 60% LTV with a £999 fee – rate reduced by 0.19% to 3.99%
- Five-year fixed rate at 60% LTV with no fee – rate reduced by 0.11% to 4.18%
- Two-year tracker rate at 60% LTV with a £999 fee – rate reduced by 0.05% to 4.24%
First-Time Buyers
- Five-year fixed rate at 95% LTV with a £999 fee – rate reduced by 0.60% to 4.99%
- Five-year fixed rate at 95% LTV with no fee – rate reduced by 0.70% to 5.09%
- Five-year fixed rate at 90% LTV with a £999 fee – rate reduced by 0.15% to 4.59%
- Two-year fixed rate at 80% LTV with a £999 fee – rate reduced by 0.15% to 4.84%
New Borrowers
- Five-year fixed rate at 95% LTV with a £999 fee – rate reduced by 0.45% to 4.99%
- Two-year fixed rate at 90% LTV with a £999 fee – rate reduced by 0.10% to 5.09%
- Five-year fixed rate at 60% LTV with a £999 fee – rate reduced by 0.18% to 4.14%
- Two-year tracker rate at 85% LTV with a £999 fee – rate reduced by 0.20% to 4.44%
Best Mortgage Rates
Finally, Michael Brown from financial research and reporting site Moneyfacts released his picks of the best mortgage rates and products available through mortgage brokers this week. In his report he included the following:
Bank Of Ireland
Rate: 4.25% fixed to 31 May 2025 before reverting to 7.09% Initial period: 2 years Product fee: £1,495 Maximum loan-to-value: 60%
MPowered Mortgages
Rate: 4.36% fixed for 3 years before reverting to 7.49% Initial period: 3 years Product fee: £1,999 Maximum loan-to-value: 60%
Virgin Money
Rate: 3.95% fixed to 1 June 2028 before reverting to 7.74% Initial period: 5 years Product fee: £995 Maximum loan-to-value: 65%
Call Oportfolio To Get The Best Mortgage Rates
If you are looking to purchase a property, remortgage, product switch, or are just wanting a chat about your finances, then please give our team a call today to book an appointment with one of our advisors. We are here to help and are more than happy to talk to you about all things mortgages.
