Mortgage rates are falling lower as Halifax announced price cuts which included a deal at 3.79%.
Rates of below 4% have been slowly entering into the mortgage market in the last few weeks, but Halifax’s deal is being described a ‘headline grabber’ because it’s the lowest yet.
The rate is available for a two-year fixed rate for those who need to borrow at up to 60% loan-to-value (LTV) and it comes with a fee of £1,999.
It is part of a newly-refreshed range of mortgages which have undergone price cuts and also include a two-year fixed rate of 3.90% with a £999 fee and five-year fixed rate deal with a 3.98% rate. These top rates are for new borrowers.
It comes just two days after Barclays announced another round of price cuts with its headline rate at 3.92%. But Halifax has managed to come in with a lower price.
Stephen Perkins, managing director at Yellow Brick Mortgages speaking to the Newspage agency, said: “This is a bold statement 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.”
The price reduction is a clear sign competition is further heating up in the market and this is good news for borrowers.
But anyone looking at these headline rates is being urged to proceed with a degree of caution.
Justin Moy, managing director at EHF Mortgages also speaking to Newspage, said: “Mortgage rates have hit a new low with these products from the Halifax, but the larger fee of £1,999 needs to be carefully considered before committing to the headline-grabbing rate.
“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 five-year terms, with many two-year deals now cheaper than equivalent five-year options.”
