Homeowners with Halifax and Lloyds mortgages are being urged to act fast as the banks cut their rate lock-in window by a third.

This means borrowers will only be able to secure a new mortgage rate four months before their current deal ends, down from six months previously.

This change could leave homeowners with less time to find a competitive deal and potentially higher monthly repayments. The warning comes from money saving expert Martin Lewis and his team at Money Saving Expert, who are urging borrowers to check their mortgage terms and act quickly.

Why the change?

The Bank of England recently cut the base interest rate, leading to a drop in mortgage rates. Currently, two-year fixed-rate deals start from 4.25 percent, while five-year fixes start from 3.88 percent, according to data from moneyfactscompare.co.uk.

However, Halifax and Lloyds aren’t the only lenders reducing their rate switch windows. Nationwide and Santander have also made similar moves, reducing their windows to four months. But there’s good news for those with other lenders – Barclays, HSBC, NatWest, and Virgin Money still offer six-month windows.

What should you do?

The Money Saving Expert team recommends checking how far in advance you can lock in a new rate with your current lender, regardless of whether you plan to switch or not.

When comparing deals, consider the following:

• Upfront fees: Some deals come with arrangement fees, so factor those into the overall cost.
• Exit fees: Check for any penalties for leaving your deal early.
• Cancellation deadlines: Most lenders won’t let you back out of a new mortgage deal within 14 days of it starting.

Beware of double mortgages!

Don’t apply for a new mortgage without cancelling your existing one. If you’re approved for two mortgages simultaneously, you could face hefty early repayment charges on your original loan.

Good news from HSBC

In a separate announcement, HSBC revealed a cut to its mortgage rates. Deals now start at a competitive 3.84 percent. The bank aims to remain competitive and support homeownership by offering more accessible rates across different loan-to-value ratios.